BURLINGAME –– jaris, a private label and full-stack embedded lending solution in the U.S., has launched out of stealth mode with its close of $31 million in Series B financing, positioning itself as a leader in the Credit-as-a-Service (CaaS) space.
GSR Ventures led the Series B funding round of $31 million with participation from Wing Venture Capital, Franklin Templeton, and individual investors.
As merchant lending for small to medium-sized businesses has increased, the complex and inefficient experience in applying and obtaining funds has created a significant barrier for merchants. In addition, software companies and payment platforms have lacked the options and choice to offer embedded lending to their customers.
jaris, a private label CaaS platform, makes it simple for payment-enabled software companies to offer branded financial services to small businesses to help increase engagement, retention, and brand loyalty. Fully managed by jaris and accessed via an innovative API, partners can quickly deliver competitive, fast financial services to their merchants. jaris is a full-stack solution that includes underwriting, servicing, and financing. jaris’ significant financing capacity through banks and whole-loan purchasers makes it the trusted solution for embedded lending.
“Lending is the biggest opportunity in embedded financing today. Our ability to remove complexity and increase access to capital for small businesses has positioned us as a leader in CaaS solutions, which has led to our rapid growth in the embedded finance space,” said Chris Aristides, founder and CEO of jaris.
jaris will use the newly raised funds to hire across all disciplines, including engineering, finance and operations, to support its rapid growth. In addition, jaris plans to expand its product offerings to enable partners to get to market faster and to provide capital to the broadest range of their small business customers.
“The $3.4 trillion SME gap is in dire need of efficient solutions that scale. We are pleased to deepen our partnership with jaris and have been extremely impressed with its full-stack solution. Under Chris’ leadership, jaris has rapidly built a world-class team, consisting of veterans and experts with decades of experience in the finance and tech industries. We look forward to further supporting them as they continue to build and expand embedded financing solutions,” said Emmanuel Vallod of GSR Ventures.
“Embedded financing has a massive addressable market and is forecasted to generate $230 billion in revenue by 2025,” said Gaurav Garg of Wing Venture Capital, who led both seed rounds. “The next wave of meteoric growth companies are embedding financial services into their applications as a strategic advantage. Embedded finance is the future of the financial services industry.”
