Cart.com Secures $70 Million in Debt Refinancing From Silicon Valley Bank

Rhea-AI Summary

Cart.com secures a $70 million debt facility from Silicon Valley Bank, part of a larger $100 million debt refinancing. The company's business grew 50% in a challenging year for retailers and commerce providers. The latest funding round follows a $60 million Series C equity round, valuing the company at $1.2 billion. Cart.com supports over $8 billion in gross merchandise value and operates 14 omnichannel facilities nationwide.

Financial Analyst

The announcement of Cart.com securing a $70 million debt facility from Silicon Valley Bank (SVB) is a strategic financial maneuver that merits a closer look from a financial perspective. It's part of a larger $100 million debt refinancing, which indicates Cart.com is restructuring its debt to potentially lower financing costs or adjust terms to align with its growth strategy. Given the company's 50% growth in a challenging retail environment, this move may signal robust financial health and a proactive approach to capital management.

Debt facilities are common instruments for growth-focused companies, providing them with the liquidity necessary to scale operations without diluting equity. However, the terms of such debt, including interest rates and covenants, can significantly impact a company's financial flexibility. Investors and stakeholders should monitor the company's debt-to-equity ratio and interest coverage ratios closely following this refinancing to assess the sustainability of its capital structure.

Market Research Analyst

Cart.com's growth amid a challenging year for retailers reflects a successful adaptation to the evolving commerce landscape. The company's focus on unified commerce and logistics solutions is timely, as more merchants seek to integrate their physical and digital operations. The ability to enable over 6,000 multichannel merchants to sell and fulfill orders across various platforms demonstrates Cart.com's value proposition in a market where omnichannel strategies are becoming increasingly important.

The impact of this debt facility extends beyond immediate liquidity; it's an endorsement of Cart.com's business model by SVB, which has a strong reputation for backing successful technology companies. This could have positive implications for Cart.com's brand perception in the industry, potentially attracting new clients and partnerships.

Economist

Examining the broader economic implications, Cart.com's expansion and the provision of a substantial debt facility by SVB underscore the vibrancy within the technology sector, particularly in commerce enablement and logistics. This sector has seen increased investment and innovation, driven by changing consumer behaviors and the accelerated shift to e-commerce. Cart.com's operation of 14 omnichannel facilities nationwide, managing over $8 billion in gross merchandise value, reflects significant economic activity and job creation potential.

Moreover, the relationship with SVB could be indicative of a favorable lending environment for technology companies, despite broader economic uncertainties. This could suggest that financial institutions remain confident in the long-term prospects of tech-driven commerce solutions, which may encourage further investments in this space.

SVB Extends Relationship with Commerce and Logistics Unicorn

HOUSTON--(BUSINESS WIRE)-- Cart.com, a leading provider of unified commerce and logistics solutions that enable merchants to sell and fulfill anywhere, announced today it has secured a $70 million debt facility from Silicon Valley Bank (SVB), a division of First Citizens Bank. The latest facility is part of a larger $100 million debt refinancing provided by SVB’s Technology Corporate Banking Division and Trinity Capital Inc.

“Cart.com’s business grew 50% amid a challenging year for retailers and commerce enablement providers alike – a testament to the innovative logistics and commerce infrastructure solutions that are helping our mid-market and enterprise customers unlock more efficient growth,” said Cart.com Founder and CEO Omair Tariq. “We’re excited to once again partner with SVB as we continue to scale and look toward our next chapter of growth in 2024 and beyond.”

Cart.com provides physical and digital infrastructure to unify operations across channels and empowers more than 6,000 multichannel merchants to sell and fulfill anywhere their customers are. The company offers a complete suite of digitally driven logistics capabilities, enterprise-grade channel and order management software and expert services to simplify commerce for middle-market and enterprise companies. Cart.com supports over $8 billion in gross merchandise value and operates 14 omnichannel facilities nationwide, totaling over 8.5 million square feet of space. In June, the company announced it had raised a $60 million Series C equity funding round at a valuation of $1.2 billion.

"SVB is thrilled to support Cart.com as it continues its mission to unify the physical and digital infrastructure of commerce,” said Cindy Schatz, Market Manager with SVB. “This latest facility is a great example of the debt, banking solutions, and strategic advice that SVB can provide to later stage technology companies, both public and private, as they continue to succeed and scale in today’s dynamic market. We’re excited to expand our relationship with Cart.com and look forward to supporting its continued growth, as one of its key banking partners.”

SVB's Technology Corporate Banking Division works with some of the most innovative public and late-stage private companies in the U.S. technology sector, providing a full suite of lending and banking solutions, as well as guidance as a trusted partner helping clients succeed and quickly scale. SVB is proud to serve over two-thirds of the companies currently listed on the Forbes 2023 Cloud 100 list.

About Cart.com

Cart.com is the leading provider of unified commerce and logistics solutions that enable B2C and B2B companies to sell and fulfill anywhere their customers are. The company’s enterprise-grade software, services and logistics infrastructure, including its own network of fulfillment and distribution centers, are used by some of the world’s most beloved brands and most complex companies to unify commerce operations across channels and drive more efficient growth.

For more information, please visit Cart.com and LinkedIn.

About Silicon Valley Bank

Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world’s most innovative companies and investors. SVB provides commercial and private banking to individuals and companies in the technology, life science and healthcare, private equity, venture capital and premium wine industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB’s parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA ), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240118863099/en/

Media:



Cart.com

media@cart.com



SVB

Katie Ellis-Fredlund

kellis@svb.com



Berns Communications Group

Carly Berns / Lee Race

cberns@bcg-pr.com / lrace@bcg-pr.com

Source: Cart.com

What is the amount of the debt facility secured by Cart.com from Silicon Valley Bank?

Cart.com secured a $70 million debt facility from Silicon Valley Bank.

How much did Cart.com's business grow amid a challenging year for retailers and commerce providers?

Cart.com's business grew 50% amid a challenging year for retailers and commerce enablement providers.

What was the valuation of Cart.com after the $60 million Series C equity funding round?

The company was valued at $1.2 billion after the $60 million Series C equity funding round.

How much gross merchandise value does Cart.com support?

Cart.com supports over $8 billion in gross merchandise value.

How many omnichannel facilities does Cart.com operate nationwide?

Cart.com operates 14 omnichannel facilities nationwide.