TOKYO -- Japan's SoftBank Group will buy into a U.S. financial technology company offering loans to small and midsize businesses.
The $250 million investment in Kabbage, announced Thursday by the Atlanta-based lender, is expected to be completed by the end of September. Whether the shares will be transferred to the SoftBank Vision Fund, a $93 billion venture capital fund led by the Japanese technology company and Saudi Arabia, has yet to be determined.
Kabbage, established in 2009, offers small businesses speedy access to funds. A prospective borrower can enter information about the company online and receive a line of credit within minutes that can be tapped immediately.
The American company said it will use the funds from SoftBank to expand its lineup of lending products as well as develop other products and services for small businesses.
"SoftBank invests in market-leading companies that dramatically improve the customer experience and expand markets through breakthrough technology and data capabilities," SoftBank Managing Director David Thevenon said.