Bread Sprouts $60 Million In Equity Financing To Redefine Branded Credit Cards Landscape
Marketing tech firm focused on providing financing solutions, Bread, has recently announced its success in raising nearly $60 million in funds. The fundraising round was supposedly led by Kinnevik with additional support from Bread’s established investors such as Bessemer Venture Partners, Menlo Ventures, RRE Ventures, Colle Capital Partners and Cue Ball, as per Globe News Wire.
Considering the fact that most consumers would prefer to shop now and pay later, it is clear that credit cards are preferred for transacting. According to the co-Founders of Bread, Josh Abramowitz and Daniel Simon, the retail landscape is about to transform to one that supports “omni channel capabilities and expand into new verticals and strategic opportunities”.
The raised funds will supposedly be reinvested in solutions that prioritize a retailers’ brand, which also includes cross-channel marketing strategies. This has been done to not only initiate smoother conversions, but to also enhance “customer lifetime value (LTV)”. Ultimately, retailers will be able to offer customizable “pay-over-time” solutions that can lure in more shoppers.
Bread has estimated its endeavors could potentially multiply its sales by approximately 61 percent when measured in terms of average order value (AOV), which translates to an average increase by 15 percent in sales.
As quoted by Abramowitz, “Retailers need to be able to offer more – and better – options to provide the best possible shopping experience,” adding that Bread’s efforts will, “Help brands and retailers connect with their customers in more meaningful ways.”
Chris Bischoff, a representative from Kinnevik, the firm that led the financing round has since expressed enthusiasm for what Bread has to offer. In particular, Bischoff views the financial service provider as being unique because of the “Different payment plans and integrations to a specific retailer’s product set and side” that is being placed.
CEO of Interior Define, Rob Royer, who’s firm is also a Bread customer trusts Bread’s white label offering will be rewarding over the long run, adding that, it helps the former as a retailer and brand to offer “customers the financing option that best meets their needs.”
Moving forward, the co-Founders of Bread see the current opportunity as one that would disrupt “the whole industry”, adding that online shopping creates more room for a “new player to come in and be the dominant player.”