Stripe agrees to acquire Parafin to bring embedded small business credit to the 18,000 platforms on Stripe

Stripe has agreed to acquire Parafin, an embedded financing platform for small businesses. Terms were not disclosed, and the deal is expected to close in the coming months, subject to regulatory clearances.

Founded in 2020 in San Francisco by CEO Sahill Poddar and Vineet Goel, Parafin lets software platforms offer credit to the small businesses that run on them, underwriting on the data the platform sees rather than a personal credit score. It has helped more than 60,000 businesses access capital and, alongside its core capital product, offers Pay Over Time and Spend. Partners include DoorDash and Amazon.

Stripe will bring those products to the more than 18,000 platforms built on it. It already lends through Stripe Capital, launched in 2019, which underwrites on a business's Stripe payment history.

The read: Parafin gives Stripe credit distribution beyond its own payment rails.

Full announcement linked in the first comment.