Moneta Ventures-backed advanced business app company App Orchid Inc. received a $7.5 million credit facility from Toronto-based venture debt company Espresso Capital.
App Orchid will use the money to continue growing its platform that uses artificial intelligence and machine learning to quickly build apps for enterprise energy and utility customers like BP PLC (NYSE: BP) and Fujitsu.
“We’re delighted to be partnering with Espresso to help build out our sales efforts, accelerate our customer acquisition strategy and grow our revenue,” said App Orchid CEO Vaibhav Nadgauda, in a news release. Nadgauda is also a managing partner with Folsom venture capital firm Moneta Ventures.
App Orchid was founded in 2013 in San Ramon. Moneta invested in App Orchid in 2015, leading a $4.4 million round. App Orchid has raised $8.9 million in venture capital since its founding, according to venture capital tracking site Crunchbase.
The App Orchid platform provides customers a combination of artificial intelligence and machine learning capabilities paired with industry specific-content that allows companies to build applications in weeks rather than months with little or no coding, the company said.
Espresso Capital provides loans to startups in the form of secured credit facilities that are non-dilutive to equity owners of the company. The loan essentially gives the startup more money and time without taking any ownership stake in the business, according to its website. Espresso raises its money from investors.
“App Orchid’s software has the potential to become a core element of the operating platforms that utilities and other enterprises rely on,” said Espresso Executive Director Eric So, in a news release. “In addition to seeing strong validation of its technology among its initial customers, the company has good visibility on a path to rapid growth as well as deep support from existing investors.”
Espresso Capital has offices in Toronto, San Francisco, Los Angeles, Chicago and London.
“We’re delighted to be partnering with Espresso on another transaction,” said Lokesh Sikaria, founder and managing partner of Moneta Ventures. “Their non-dilutive financing has helped position the App Orchid team for further growth, while maximizing their strategic flexibility.”
Moneta also worked with Espresso Capital with another of its portfolio companies, Gold River-based CREtelligent, an information platform for commercial real estate lending.
