Boopos closes new credit line of up to $175M for business-buying marketplace

By Riley Kaminer

Micro M&A is having its moment. If you’re on X, it’s hard to escape personalities like Sweaty Startup, Michael Girdley, and SMB Attorney who all profess the virtue of business acquisition as a career option.

This is the exact wave Miami-based Boopos is riding: connecting business sellers with business buyers and providing financing options along the way. To further fund their customers’ SMB buying dreams, Boopos has just announced a new credit line of up to $175 million provided by affiliates of Fortress Investment Group.

“Fortress is a new partner with much more firepower,” Boopos founder and CEO Juan Ignacio Garcia Braschi told Refresh Miami. “That means that we will be able to serve a much larger number of customers.” 

The typical deal size for Boopos ranges from $100,000 to $5 million. “These businesses have a long track record, have very good customer retention, and are generally B2B,” he added. 

Boopos CEO Juan Ignacio Garcia Braschi

Boopos has doubled down on the SaaS vertical, moving away from additionally focusing on eCommerce. Garcia Braschi explained that eCommerce is very volatile, and buying eCommerce businesses often requires a major outlay of cash on day 1. “This means you need to invest more money upfront instead of starting to recover costs.”

On the other hand, SaaS provides a much healthier revenue stream. Even if SaaS businesses aren’t performing well, the revenue decreases slowly over time, giving you a longer period to recover. All of this makes SaaS businesses a better bet from a credit perspective, Garcia Braschi noted.

This focus on SaaS has already paid dividends, with that vertical within Boopos having doubled year on year. The 35-person company has no raised $20 million in equity and close to $250 million in credit facilities.

When it was originally founded in 2020, Boopos focused on lending. The company then started to build a directory of pre-approved businesses from third-party brokers. Garcia Braschi explained that Boopos eventually realized that around two thirds of its customers were using the directory. “That’s why we decided to invest there and build a fully-fledged marketplace.”

“We have started onboarding sellers directly to our marketplace, not only with third-party brokers,” Garcia Braschi continued. “So we now have a marketplace in which you can also find the acquisition financing you need for completing those acquisitions.”

Boopos’s revenue comes from marketplace fees, fees from originating loans, and a spread on the loans themselves. Garcia Braschi explained that the marketplace model provides much higher margins than lending, leading to an improvement in Boopos’s overall operating margins.

Looking forward, Garcia Braschi is excited to benefit from the M&A trends. “We found product-market fit in having this marketplace plus lending platform, and now it’s just a matter of scaling.” Garcia Braschi has his sights set on launching Boopos abroad, perhaps in Singapore or Canada, two countries where the platform is already seeing some traction.

“Other than that, it’s all about making sure we reach more and more individuals and teams who want to buy businesses.”

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Riley Kaminer