Capchase has acquired Vartana to enhance its position as a leader in tech-powered vendor financing for B2B software and hardware companies. This acquisition allows Capchase to offer faster buyer approvals, automated workflows, and real-time visibility, addressing challenges in the traditional vendor financing market. The move aims to provide B2B vendors with improved access to working capital and accelerate sales in a historically manual industry.

The software-as-a-service (SaaS) industry is facing budget constraints and reductions in headcount as a result of the pandemic and the broader slowdown in tech. Companies have tightened up their budgets for SaaS purchases, looking to keep cash on hand while growing more efficiently.That’s why Kush Kella and Ahmed Sharif founded Vartana (which my colleague Mary covered recently). While working together at fleet management company Motive, Kella and Sharif say they dealt with the pains and problems caused by broken SaaS contract management and rigid payment infrastructure. After years watching deals falls through due to a lack of payment flexibility, they left Motive to build Vartana, aiming to equip companies with a managed platform that helps sales reps close deals.“Vartana is a win-win for sellers and buyers of SaaS services and hardware products,” Kella told TechCrunch in an email interview. “It gives vendors new tools to close contracts and generate cash with prepaid deals while offering buyers various payment options and a simplified purchasing experience, ensuring buyers are able to purchase the best technology available to grow their business.”Vartana today announced that it raised $12 million in a Series A round led by Mayfield with participation from Xerox Ventures, Flex Capital and Audacious Ventures., bringing its total raised to $19 million. Vartana also secured a $50 million line of credit from i80 Group, which Kella says will ensure financed deals can be managed through Vartana’s new capital marketplace.“With the launch of the Vartana’s capital marketplace, Vartana no longer holds buyer debt in their books, ensuring a balance sheet-light business,” Kella said