GettyImages 88622588

Boopos Adds New Investment to Its Small Business M&A Lending Pot – Technology Flow

Six months after announcing $30 million in equity and debt, Bupos, a Miami-based lending platform for business acquisitions and growth, is back with an even bigger round, a $58 million Series A, with a mix of equity and debt.

The latest round included $8 million in equity and $50 million in debt, Boopos founder and CEO Juan Ignacio Garcia Braschi told Technology Flow. Fasanara Capital, which led the initial seed round, is participating again, this time with Bonsai Partners leading the round and Nova Capital Partners as an additional partner. Actyus and K Fund are also among the group of investors.

Garcia Braschi launched the company in 2020 to leverage acquisitions for business owners, primarily company aggregators, to grow their companies. Most small business acquisitions often don’t qualify for bank financing, and assistance from Small Business Administration loans is slow and requires personal guarantees, he said.

“For a lot of people, it’s too much of a risk,” added Garcia Braschi. “They are willing to take the risk to buy a business and be a business owner, but not risk their own assets. In most cases, the buyer is not a US resident, which is the case with online businesses, and the loan is dependent on tax returns.

Boopos qualifies buyers through an application and by accessing their LinkedIn profiles to ensure they have the right skills and track record to succeed in business ownership.

The company can underwrite online businesses in less than 48 hours and offers facilities to fund up to 80% of the purchase on a flexible, revenue-driven schedule. And, even if the owners don’t want to risk their own assets, the company will have to invest 20% of the deal in order to have some skin in the game. Bupos charges interest on loans.

Additionally, Boopos works with business brokers to pre-approve their Marketplace listings, giving them the ability to close a sale in an average of 45 days. The company is adding about 100 new Amazon business, e-commerce and SaaS listings every month.

In February, the company had 200 qualified buyers on its waitlist, and today, it’s now over 500. It has partnered with a group of business brokers that transact $3 billion a year, including EmpireFlippers, FE International or Quiet Light.

After the company’s seed round, Adrienne Yance joined as chief technology officer and Sarita Bhatt as chief marketing officer to help Bupos scale to Series B and beyond, Garcia Braschi said. The company now has 25 employees and Garcia Braschi expects to double that in the next 12 months.

Meanwhile, the debt investment will help ensure funds are available to lend, while the equity portion will go towards building and growing the Bupos team.

Next, the company will launch a mobile app that Garcia Braschi calls a “business owner dashboard” for users to explore and decide which businesses to buy. Once they make a decision and move the businesses into their profiles, they have a portfolio view of how the businesses are performing in terms of revenue relative to valuation and how debt is being reduced and repaid. Future features will include alerts to businesses for sale.

Garcia Braschi said the company’s valuation after this round was roughly double that of the previous seed round, though he didn’t get specific. It has consistently grown revenue between 30% to 50% month-on-month since late 2021.

“Our portfolio is performing solidly despite the weak macro environment and recent layoffs and difficulties or pivots faced by competitors,” he added. “We have adapted our credit approach and are more conservative, lending for lower amounts and being more selective. Our financing is still useful as M&A multiples have also contracted by at least 20% to 30% based on our database.

Leave a Comment

Your email address will not be published.