Behalf

Based in New York City, Behalf provides B2B payment and financing solutions that allow merchants to offer net terms and instant credit at the point of sale. The financial technology company integrates its BNPL platform directly into ecommerce portals, paying vendors immediately while allowing small and medium business buyers to repay on flexible schedules. The organization has provided working capital loans of up to $50,000 to tens of thousands of businesses and maintains a workforce of approximately 90 employees across its offices in the United States and Israel. To support its lending operations, Behalf has secured over $450 million in combined equity and debt financing from prominent institutional backers including Sequoia Capital, Spark Capital, Soros Fund Management, and Visa. The enterprise was originally founded in 2012 by Benjy Feinberg, Shai Feinberg, and Jeremy Esekow.

High-Level Overview

Behalf was a fintech company that provided B2B payment and financing solutions, enabling merchants to offer net terms and flexible financing options like buy now, pay later (BNPL), microloans, business term loans, and revolving credit lines to small and medium-sized enterprises (SMEs).[1][2][3][5] It served B2B merchants and their business customers by integrating into eCommerce platforms, automating payments across invoicing and sales channels, and addressing cash flow challenges to boost purchasing power and sales.[1][2] The company raised $325M total, reached Debt-II stage, but ceased operations in January 2023 amid financial pressures, as indicated by a declining Mosaic Score.[1][3]

Origin Story

Behalf was founded in 2011 (some sources note 2012) by Benjy Feinberg, Shai Feinberg, and Jeremy Esekow in New York, initially under the name Zazma before rebranding.[1][3][4] The idea emerged to tackle small business financing gaps by paying vendors directly on behalf of buyers, offering short-term loans from $300-$50,000 with flexible terms.[3][4] Early traction included a 2015 MasterCard and Comdata partnership for broader vendor acceptance, followed by a $119M equity raise from investors like Sequoia Capital, Spark Capital, and others; it later secured $100M in debt financing to expand BNPL for B2B e-commerce.[3][5] These milestones built momentum until operations ended in January 2023.[3]

Core Differentiators

• Seamless B2B Integration: Embedded into eCommerce checkouts, invoicing, and managed sales for automated net terms and financing, unlike traditional lenders.[1][2]
• Instant Approvals and Guarantees: Provided online access, real-time approvals, and 100% payment guarantees to suppliers, enhancing trust and sales for underserved SMEs.[2][4]
• Flexible Financing Options: Offered BNPL, microloans, term loans, and revolving credit tailored to transaction sizes, improving cash flow without rigid structures.[1][3][5]
• Merchant-Centric Model: Focused on increasing supplier sales by enabling buyer flexibility, differentiating from competitors like Bluevine, Fundbox, and C2FO which emphasize banking or general working capital.[1]

Role in the Broader Tech Landscape

Behalf rode the B2B fintech and BNPL wave in the early 2010s, capitalizing on e-commerce growth and SMEs' need for non-traditional credit amid slow invoice payments and limited bank access.[1][2][5] Timing aligned with rising digital B2B sales post-2010, where platforms like Shopify amplified demand for embedded finance; market forces like high interest rates and economic shifts favored agile solutions over legacy banking.[3][5] It influenced the ecosystem by pioneering supplier-direct payments and net terms automation, paving the way for competitors and normalizing BNPL in B2B, though its 2023 shutdown highlights sector vulnerabilities to funding squeezes and defaults.[1][3]

Quick Take & Future Outlook

Behalf's story underscores the high-stakes volatility in B2B fintech, where innovative financing drove sales growth but couldn't withstand 2022-2023 market headwinds. Post-shutdown, its model lives on through evolved players like Bluevine and Fundbox, suggesting embedded BNPL will expand with AI-driven underwriting and economic recovery.[1] Trends like API-first payments and supply chain finance could revive similar ventures, potentially under new ownership of Behalf's IP, amplifying their role in a maturing $10T+ B2B payments market—echoing its original mission to transform how businesses buy and sell.[2][5]