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