Softbank invests $655m in Greensill

Softbank drew capital for the transaction from its global technology investment vehicle Softbank Vision Fund, which has a $100bn target. The funding consists mainly of convertible notes, according to a report by the Times.

The fresh capital will be used to accelerate the company's international expansion plans and finance acquisitions. 

Alongside the investment, Greensill has also announced its acquisition of finance firm FreeUp. It is currently preparing to launch a service that would replace payday loans and enable companies to offer their employees' advances on their wages.

Previous funding
General Atlantic provided Greensill with $250m in growth capital funding in July 2018, with the fresh capital earmarked to build new partnerships with corporates, bolster existing client relationships and invest in new technology.

Softbank invested $800m in the company in May 2019. According to the Financial Times, the transaction gave Softbank a 15-20% stake in Greensill and valued it at around £3bn.

Company
Founded in 2011, London-headquartered Greensill is a provider of working capital and supply-chain finance to companies. The business uses proprietary data-driven software to make its working capital finance available to all sizes of business. It works with around 100 institutional investors and has provided $60bn in financing to 8 million customers in 165 countries.

For 2018, Greensill generated an operating profit of $43m from revenues of $233m.

People
Softbank Investment Advisers – Colin Fan (managing partner); Hayley Chan (vice-president).
Greensill – Lex Greensill (founder, CEO).
FreeUp – Reuben Saxon (founder).

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