NEW YORK--(BUSINESS WIRE)--Rho Technologies, the high-growth fintech behind Rho Business Banking, announced $100 million in debt financing from global impact investment firm, Community Investment Management (CIM). The financing will allow Rho to invest in strategic initiatives and broaden its service offerings to business clients including names like direct-to-consumer furniture company Burrow, collaboration software company Popular Pays and direct-to-consumer home goods company Caraway.
The news comes on the heels of Rho's $15 million Series A funding round and the launch of a new, integrated accounts payable feature as part of its business banking platform. Rho Business Banking has built a modern commercial banking platform built around the way companies operate today: distributed, team-oriented, transparent and built for scale.
"The closing of this credit facility heralds an exciting new chapter for Rho," said Everett Cook, CEO and Co-Founder of Rho Technologies.
Chief Credit Officer at Rho, Khang Nguyen, played an influential role in Rho’s partnership with CIM. He brings a wealth of experience, having previously advised and structured more than $20 billion of principal investing and client transactions as a lender, investor, and investment banker.
"Our ability to secure $100 million in financing this early in our growth trajectory reflects investors' confidence in our strategy to modernize business banking, a $700 billion dollar industry in desperate need for innovation," said Nguyen.
Rho's rapidly growing customer base—spanning venture-backed startups to middle-market companies across industries—is leaving decades-old industry names for modern finance tools and services to support their scaling businesses. As of April 2021, Rho has experienced a 50% increase in transaction volume since December 2020 on an annualized basis.
"We are proud to support Rho’s endeavor to modernize business banking to create a more inclusive financial ecosystem, one that serves not just large commercial businesses but also smaller high growth firms with first-class services that are generally inaccessible to them,” said Jacob Haar, Co-Founder and Managing Partner of CIM. “We are looking forward to this partnership and what we can achieve together.”
To date, Rho has raised $20 million of equity capital from institutional investors, including Inspired Capital, M13 Ventures, ConsenSys, and Torch Capital.
About Rho:
Rho Technologies is the NYC-based fintech behind Rho Business Banking, the only finance platform built from the ground-up to help business teams work better together.
The company was founded by former Point72 and Deutsche Bank alum Everett Cook and British-Canadian serial entrepreneur Alex Wheldon. With backgrounds in both finance and operations, they understood how badly fragmented and outdated current commercial finance solutions and tools were relative to the rest of today’s enterprise software. The Rho Business Banking platform approach consists of a single solution that encompasses both collaborative finance software and commercial-grade banking, which together help businesses save time, money, and effort as they grow. Clients are all supported by its team of business bankers and capital markets professionals.
Banking services are provided by Evolve Bank and Trust, member FDIC.
About Community Investment Management:
Community Investment Management (CIM) is an institutional impact investment firm that provides strategic debt funding to demonstrate and scale responsible innovation in lending to underserved communities including small business owners, students, and low-income households across the U.S. and Emerging Markets. We believe that responsible financial inclusion for the underserved is critical to equitable economic growth, job creation and retention, and the health and sustainability of local communities. More information is available at http://www.cim-llc.com.
