Underscore VC Leads Lendflow's $10M Series A

When I met founder/CEO Jon Fry in mid 2020, I was immediately taken with his grand vision, execution strategy and expertise.

Jon spent over a decade building companies targeting SMEs, including most recently as founder/CEO of Quickline Credit (originator, with $150M+ in SME loans).  As co-founder/CTO, Matthew Watts is armed with depth, having built scalable fintech products, with experience at LaLaMove, SpendHQ and Facebook.

What Jon originally recognized was that every SaaS company could be a fintech provider to its customers, but could not afford the distraction and investment in building its own infrastructure.  And Lendflow was born.

We are excited to finally unveil this team we invested originally back in Q4/2020: Lendflow, the market leader in embedded finance infrastructure for vertical SaaS platforms.  After being heads-down with laser-focus execution -- establishing key partnerships, and scaling revenue -- today, Lendflow is announcing its $10M+ Series A led by our friends at Underscore VC, alongside Uncorrelated Ventures, Y Combinator, Knoll Ventures and a number of other strategic investors.

Lendflow enables vertical SaaS companies serving SMBs to build, enhance or embed financial products within their ecosystems.  

Combining a vast marketplace, contextual product placements and powerful data services that include data aggregation, orchestration, decisioning, monitoring and standardization, Lendflow is well positioned to become a leader in embedded finance infrastructure in the U.S. and abroad.

There are 3 cores to Lendflow’s revenue model: SaaS platform fee for its Embedded Solution; Revenue Share on Lending Origination Fees (via Lendflow’s Lender Marketplace); and a Data Services API solution, which allows SaaS companies to enhance their own credit facility or build new credit programs.  Lendflow works with top vertical SaaS companies in construction, transportation, e-commerce and home services industries to help them launch financial products quickly and effectively.

The platform includes:

• Robust API and data services offerings that include KYB and credit verification, which allows customers to build elegant and seamless credit programs directly within their existing lending platforms
• User-friendly code to minimize operational complexity, development resources, and time to market
• A white label solution that provides a native experience and allows vertical SaaS platforms to maintain brand control

“The idea of contextual lending isn’t new; in-market lending services have existed for some time, but historically, it took a tremendous amount of effort and time for a product or service provider to become a lender,” said Jon Fry, CEO, Lendflow.  “We’ve built a platform on which software companies can quickly launch financial products tailored to their audience.  This promotes higher user engagement, increases revenue per user, and decreases churn.”

We share Jon’s vision that every SaaS company could offer financial products to its customers, and I know Lendflow should be the de facto embedded finance infrastructure (with lender marketplace) to make this vision a reality!