The fast-growing business banking platform teams with impact investment firm Community Investment Management to bolster its ability to service clients beyond traditional banking needs
Rho Technologies, the high-growth fintech behind Rho Business Banking, announced $100 million in debt financing from global impact investment firm, Community Investment Management (CIM). The financing will allow Rho to invest in strategic initiatives and broaden its service offerings to business clients including names like direct-to-consumer furniture company Burrow, collaboration software company Popular Pays and direct-to-consumer home goods company Caraway.
“The closing of this credit facility heralds an exciting new chapter for Rho”
The news comes on the heels of Rho’s $15 million Series A funding round and the launch of a new, integrated accounts payable feature as part of its business banking platform. Rho Business Banking has built a modern commercial banking platform built around the way companies operate today: distributed, team-oriented, transparent and built for scale.
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“The closing of this credit facility heralds an exciting new chapter for Rho,” said Everett Cook, CEO and Co-Founder of Rho Technologies.
Chief Credit Officer at Rho, Khang Nguyen, played an influential role in Rho’s partnership with CIM. He brings a wealth of experience, having previously advised and structured more than $20 billion of principal investing and client transactions as a lender, investor, and investment banker.
“Our ability to secure $100 million in financing this early in our growth trajectory reflects investors’ confidence in our strategy to modernize business banking, a $700 billion dollar industry in desperate need for innovation,” said Nguyen.
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Rho’s rapidly growing customer base—spanning venture-backed startups to middle-market companies across industries—is leaving decades-old industry names for modern finance tools and services to support their scaling businesses. As of April 2021, Rho has experienced a 50% increase in transaction volume since December 2020 on an annualized basis.
“We are proud to support Rho’s endeavor to modernize business banking to create a more inclusive financial ecosystem, one that serves not just large commercial businesses but also smaller high growth firms with first-class services that are generally inaccessible to them,” said Jacob Haar, Co-Founder and Managing Partner of CIM. “We are looking forward to this partnership and what we can achieve together.”
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