SaaS startup Gynger launches from stealth with $21.7M in funding to change how businesses buy software

Every business today is dependent on software and infrastructure to get their business off the ground and cannot launch, build or scale without the right tech stack. With global software spend expected to grow to $879 billion in 2023, these costs are ideal to finance for companies looking to be capital efficient.

According to a report from Gartner, businesses spent a total of $330 billion on cloud software in 2021, a stunning 23% increase from $270 billion a year earlier, That’s not all. After polling CIOs, the research giant also found that total SaaS spend will grow to $140 billion this year from $100B two years ago.

Another report also found that an average company spends about $5,800 per employee each year on SaaS software, with nearly 40% of all SaaS licenses remaining unutilized in a given 30-day period. However, with the current global economic outlook and the ongoing recession, businesses, small and large, are looking to scale down their spending, making SaaS software a prime target for cuts.

But cutting the software budget is easier said than done and that’s why one startup is on a mission to change the economics of software by making it easier for companies to finance their SaaS software payment.

Enter Gynger, a New York-based SaaS fintech startup and provider of software and infrastructure platform that helps businesses and startup founders save money, extend runway, and improve cash flow by financing their software and infrastructure spend. By enabling businesses to purchase these tools with flexible payment terms, regardless of what their vendors offer, Gynger helps them buy the best products for their tech stack while saving money.

Today, Gynger emerged from stealth with a $21.7 million in funding to expand its operations to help startups access the tools they need to grow. The round, which includes $11.7 million in seed funding and $10 million in debt financing, was led by Upper90 and Vine Ventures led the round with participation from Gradient Ventures, Google’s AI-focused venture fund, m]x[v Capital, Quiet Capital, and Deciens Capital. Upper90 is also providing the initial $10 million debt facility.

Gynger was founded in 2021 by Mark Ghermezian, technology industry veteran and Braze co-founder/former CEO to enable companies to access the tools they need to scale without restrictions.

In a statement, Darian Shirazi, General Partner at Gradient Ventures, said: “The per-seat annual billing software model is evolving and we believe Gynger is offering new ways for companies to buy software that best suits their financial situation.” He also added: “Many have attempted to innovate on the underwriting model for software financing, but the real multi-billion dollar opportunity is in offering a myriad of payment and financing workflows depending on customer need. Gynger is revolutionizing how customers pay for and purchase software and we’re thrilled to partner with them.”

Gynger provides startups immediate access to non-dilutive capital to finance their software purchases so that they can secure the best pricing, pay on their terms, and optimize their cash flow. With Gynger, companies are underwritten within minutes, have their vendors paid the next day, and manage all their software contracts and payments in one dashboard.

“In the early days of building Braze we needed the best software and infrastructure to get the company off the ground, but those tools were expensive. It was a challenge to balance our tech costs while focusing on extending runway,” said Mark Ghermezian, Founder and CEO of Gynger. “We wanted to figure out how to combine software with capital to really service the startup ecosystem, to help them get the best software while extending and managing their cash flow.”

In a market where raising capital is increasingly challenging and runway is top of mind, Gynger provides an alternative financing solution to help companies secure the tools they need. The barrier of entry for venture debt is high, traditional lenders are time-consuming and tend to disfavor tech companies, and revenue-based financing is only relevant for ARR based businesses.

By putting the purchasing power in the hands of their users – without requiring the warrants, fees, commitments, and personal guarantees that other lenders demand – Gynger has created a truly founder-friendly product.

To date, Gynger has financed contracts as small as $1,000 to as high as $1MM for top platforms, including Datadog, Airtable, Secureframe, GCP, AWS, Amplitude, Apollo, Braze, Slack, and Zoom.

“Gynger has enabled us to grow globally in a very streamlined manner”, said Timur Ozekcin, Co-Founder and CEO at cybersecurity company, Cylera. “Their financing product helped us manage onboarding costs and create efficiencies in our cloud hosting spend to maximize our resources.”