Parker Raises $31.1M Series A to Grow Its Credit Card for E-Commerce Brands

The NYC startup also raised $70 million in debt financing, which includes an option to upsize to $120 million.
Written by Jeff Rumage
March 20, 2023Updated: March 21, 2023
Parker co-founders Yacine Sibous (left) and Milan Ray (right) sit on a brown leather couch.
Parker co-founders Yacine Sibous (left) and Milan Ray (right). | Photo: Parker

The recent volatility at Silicon Valley Bank and the downturn in venture funding have caused tech companies and other startups to look more closely at credit cards that meet the needs of entrepreneurs.

New York-based startup Parker recently emerged from stealth with a credit card designed for mid-market e-commerce companies.

In a blog post from Thursday, Parker announced that it raised $31.1 million in a Series A funding round led by Valar Ventures. This capital raise follows $5.9 million in previously unannounced seed and pre-seed rounds co-led by Valar Ventures and Y Combinator. Parker also announced it received $70 million in debt financing, which includes an option to upsize to $120 million.

Parker co-founders Yacine Sibous and Milan Ray said in the blog post that the company will use the funding to double down on growing its product, engineering and growth teams.

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While there are other corporate credit cards that cater to startups, Sibous and Ray claim those cards often ignore bootstrapped and mid-market businesses in favor of large, “whale” customers. Another option for companies is merchant cash advance lenders, which require a percentage of the company’s revenue. Sibous and Ray said merchant cash advance lenders can be cost-restrictive to e-commerce startups.

“In sum, no one has cracked the perfect credit product for mid-market borrowers,” Sibous and Ray wrote. “They’re in a ‘messy middle’ where they’ve grown to meaningful scale, but still lack good access to capital markets.”

Parker, meanwhile, focuses on mid-market, internet-native brands with annual revenue ranging from $5 million to $200 million. According to Parker’s website, the interest-free card differentiates itself from others by offering 90-day rolling payback periods and credit limits as high as $10 million, based on business performance.

Parker has already processed more than $300 million in transactions and has supported hundreds of brands across the apparel, luxury goods, wellness, beauty and food and beverage sectors.

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