Pipe

Pipe offers embedded financial products that software platforms integrate to give their small and medium-sized business customers access to capital and cash-flow tools. The company positions itself as an "embedded financial OS" delivered through a single integration, allowing partner platforms to launch financing products for customers across multiple markets.

Pipe targets three main platform categories: vertical SaaS providers, for which it offers industry-specific risk models; payment facilitators, which use embedded financing to increase retention and gross payment volume and to create an additional revenue stream; and marketplaces, which use the products to increase customer loyalty and share of wallet. Implementation is described as no-code or low-code, with partners able to embed a small amount of code to launch a capital product, supported by Pipe's implementation team, documentation and API. Pipe also provides customer experience and go-to-market support to partners to drive activation and utilization of the financial products among their end customers.

Business model

Pipe distributes its financial products indirectly, through software platforms that embed them for their own small-business customers, rather than acquiring small businesses directly. Partner platforms gain retention and, in the case of payment facilitators, a new revenue stream from embedded financing.

Traction

Pipe reports partner-facing performance figures including a 9.4% activation rate from email outreach in the first month for vertical SaaS partners, a 61% average conversion rate, a Net Promoter Score of 80, and 12% faster month-over-month revenue growth for participating SMBs. Named partners and customers include GoCardless, Swella and Ridgeline Well & Pump.