The best thing about human beings is that we always find a way to navigate through different scenarios. This, in particular, helps us big time when pursuing something as crucial as constant progression. Nevertheless, we still end up needing an external helping hand over time, and to make sure we have that, human beings would come up with some really interesting ideas, but if we are being honest, none of them will come close to matching technology. Technology was a genuine anomaly from the get-go because it introduced us with a brand new way of doing practically everything. In fact, even after helping us inculcate what was a significantly smarter identity, the creation continued impacting the world under one capacity or the other. The act of building upon our new foundations led us towards a reality where everything was suddenly within our reach. Talk about this limitless dynamic, it has its own different iterations. However, assuming the whole thing shakes out as per the script; a recent funding should allow it to bring one more into the picture.
Onramp Funds, an Austin-based company providing financing to e-commerce sellers, has successfully secured over $42 million in equity and credit. Led by Luther King Capital Management, the funding is expected to fund small businesses, therefore aiding them in regards to optimizing the shipping, fulfillment, advertising and inventory cost of goods. The company does so using its relatively new working capital offering, which was launched just nine months ago. The service has already served hundreds of customers, with revenue growing at a rather reassuring 30% rate. While we covered how Onramp will use the credit line, the company plans on investing the equity portion in building an all-new customer acquisition engine. Beyond that, it also hopes to conduct an extensive recruitment drive to bolster personnel in areas like engineering, product, sales, marketing, and overall client success.
When questioned about the current e-commerce scenario, Onramp Funds’ CEO, Eric Youngstrom responded by saying:
“People just didn’t have the money necessary to complete the order. The money’s there — in three days it’ll be deposited into your account, but if you don’t get it going today, you’re going to lose the order. Amazon set the standard there,” he said. “If we can help the small business owner, we can make the world a better place,” he added. “If we get to help people succeed at their jobs, I think that’s wonderful.”
Considering e-commerce sales in the US are still under 20% of all the retail market, there remains a huge commercial potential for the platforms to tap into, and with companies like Onramp trying their best to facilitate this transition, it shouldn’t be too bumpy of a ride.