Greensill Capital puts fundraising on ice
Supply chain finance company Green capital delayed for several months a new fundraising after increasing the amount he wishes to raise, the the Wall Street newspaper reported, citing “people familiar with the matter”.
The Softbank-backed startup had planned to complete the investment in early January, but it now seems unlikely that it will be completed until at least the end of March, people told the WSJ. Greensill has increased its funding target from $ 500 million to $ 1 billion.
The delay follows a difficult year for the company, which provided companies with $ 143 billion in short-term capital, compared to the $ 173 billion it planned to lend. The financing allows companies to lengthen the deadlines for paying invoices.
The firm provides working capital financing to companies, “making finance fairer”, according to their to place.
Greensill also had to forgo $ 435 million in funding it provided to Katerra, a construction startup that uses factory assembly to cut out middlemen and minimize construction costs. Greensill received a 5% stake in Katerra for forgiving the loan, the value of which is unclear.
Katerra has struggled to avoid bankruptcy, also receiving $ 200 million from Softbank this year. Greensill and Katerra are part of Softbank’s Vision Fund. Softbank invested nearly $ 1.5 billion in Greensill in 2019.
WSJ reached out to Softbank, who declined to comment.
And in May, the company warned businesses not to abuse their supply chain finance offers by delaying payments to small business suppliers beyond 30 days.
Last fall, Greensill began preparing for a potential Initial Public Offering (IPO) by hiring a new auditor and adding a senior advisor and a non-executive director.