Kafene

Kafene is a BNPL provider for consumers with credit scores below 650 looking to purchase items such as furniture, appliances, and electronics, which are considered to be essential goods. The company was co-founded by the former CFO of the Powersports financing platform Octane Lending. Kafene’s model is quite similar to other B2C players but follows a lease-to-own structure instead of a loan. Customers can lease the item until they own it or pay it off early to receive discounts and get a credit score boost. Kafene provides a credit limit of up to USD 5,000 and the most common financing term is 1-2 years with monthly payments as low as USD 50.

Kafene launched its beta version in December 2019 and claimed to have halted operations during the Covid-19 pandemic, specifically from March-June 2020. Led by the pent-up demand from the pandemic, Kafene received a large volume of merchant enrollments once it launched out of beta in July 2020, leading to a temporary pause in enrollments. As of January 2024, the platform had serviced over USD 150 million in merchandise volume.

Key customers and partnerships

In March 2024, Kafene partnered with BrandSource, an ecommerce platform for appliances, home furnishings, and consumer tech products across the US and Canada, to support business growth and expand product reach.

Funding and financials

In January 2024, Kefene secured USD 15 million in a venture debt facility from Trinity Capital Inc. The company planned to use the investment from Trinity Capital to scale up its commercial operations and broaden its consumer base. In October 2023, Kafene raised USD 12.6 million in Series B extension funding led by Third Prime, with other existing investors participating from its Series B funding in September 2022. The company earmarked the funds to accelerate its merchant partnerships and increase capital allocation on consumer underwritings.

Key competitors: None comparable (Kafene offers a BNPL solution for furniture, appliances, and electronics purchases)