FreshBooks secures $100 million USD debt facility from BMO, J.P. Morgan

With fresh funds, FreshBooks wants to continue global expansion, strategic acquisitions.

Toronto-based accounting SaaS startup FreshBooks has secured a $100 million USD syndicated debt facility with BMO Financial Group and J.P. Morgan.

“We want to seize global growth opportunities and continue scaling our operations to support more business owners than ever before.”
– Don Epperson, CEO of FreshBooks

The facility also includes an uncommitted accordion feature of $25 million USD, for a total borrowing capacity of up to $125 million USD.

According to FreshBooks, this debt facility will enable the company to continue its global expansion plans, including strategic acquisitions as well as investments into “more regulated markets.”

“This funding arrives at an important period of momentum for FreshBooks,” said Don Epperson, CEO of FreshBooks. “We want to seize global growth opportunities and continue scaling our operations to support more business owners than ever before.”

Epperson was appointed to his role in January last year, replacing the founding CEO of the company, Mike McDerment.

Since Epperson first joined FreshBooks in 2019 as both board member and executive director, he had been working closely with McDerment to “strengthen” FreshBooks’ day-to-day operations prior to taking over as CEO

Last year, a month after the CEO switch-up, FreshBooks also hired Mara Reiff as the company’s first chief data officer to lead its data governance strategy.

Over the last two years FreshBooks has also acquired Germany-based, invoicing and financial management software firm Fastbill, and Mexico-headquartered e-invoicing company Facturama.

This latest debt facility builds on BMO and J.P. Morgan’s previous investments into FreshBooks.

RELATED: FreshBooks secures $163 million CAD and unicorn valuation to increase global reach

FreshBooks joined Canada’s growing list of tech unicorns in 2021, raising a $163 million CAD ($130 million USD) investment round in August led by long-time FreshBooks investor Accomplice, with participation from J.P. Morgan, BMO, Gaingels and Manulife. In the financing, BMO provided $62 million CAD ($50 million USD) in debt.

In 2019, FreshBooks announced that it received a strategic investment from J.P. Morgan. Though the funding amount was not disclosed, a FreshBooks representative told BetaKit at that time that J.P. Morgan’s contribution marks the “most significant investment so far” for FreshBooks.

FreshBooks also previously raised a $40 million CAD ($30 million USD) Series A round in 2014, and $57 million CAD ($43 million USD) in Series B funding in 2017.

Image courtesy of FreshBooks.

Charlize Alcaraz

Charlize Alcaraz

Charlize Alcaraz is a journalism student at Ryerson University and a staff writer for BetaKit. Follow her on Twitter @charlizealcaraz

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