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New York based online purchase financing solutions company Bread has raised $126m in Series B funding led by Menlo Ventures. The company was founded in 2014 and offers white-label solutions for retailers who wish to offer convenient financing to their customers.
The reason is simple: Customers are more likely to spend more money, on more things, when they have the ability to pay later. "When we go to merchants, they're aware that financing will have a real impact on their sales," says Josh Abramowitz, co-founder and CEO of Bread. Affirm, PayPal Credit and Klarna are also racing to finance big-ticket online purchases. Unlike its competitors, however, Bread isn't trying to build a consumer brand. It's differentiating itself by allowing retailers to offer customized financing options with their own branding. In doing so, Bread sees an opportunity to replace private-label credit cards that you might get from Tiffany's or Macy's that have long been used as a means of building customer loyalty.
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