Fintech company Ratio has raised $15.8 million in a Series A funding round and secured $100 million in lending capacity from a major financial institution. The funding round was led by existing investor Neo, with participation from new investors including Infinity Ventures, Citi Ventures, and others. The capital infusion is intended to expand Ratio's platform, which provides revenue-based financing to B2B software and technology companies.
Founded in 2021, Ratio's core product offers non-dilutive financing to B2B SaaS and tech scale-ups by advancing capital against their annual recurring revenue (ARR). The company states this model helps businesses manage cash flow constraints without giving up equity. The newly secured $100 million in lending capacity from Citi will directly fund these advances to clients.
The company reports that it has already deployed over $200 million in financing to more than 100 companies since its inception. Ratio plans to use the new equity funding to accelerate product development, including tools for financial planning and analysis (FP&A), and to expand its team. The announcement positions the funding as a response to ongoing challenges in the venture capital and debt markets for growth-stage tech companies.
