Why We Invested in ClarityPay
I was recently asked how we identify which companies to invest in at an early stage, and I responded with: “We tell everyone our secret and still no one does it.”
Our investment decisions all go back to foundational principles. We look for durable, sustainable businesses with massive market opportunities. We want to see product-market fit and customer traction. And most importantly, since we are betting on the people as much as the business model, we seek out hard-working, visionary founders with a strong track record of success.
All of these qualities describe ClarityPay, a provider of white-labeled, configurable pay over time solutions.
ClarityPay is solving real pain points in point-of-sale credit by aligning consumer financing with merchants’ complex and highly segmented growth strategies.
The company enables merchants to personalize credit offers based on the latest customer data, all within a seamless, branded payment experience. With broad-spectrum coverage and payment plans that range from four to eighty-four installments, merchants can convert more customers and grow profitably. And, by establishing dedicated credit lines tied to a merchant’s brand, ClarityPay drives repeat purchases and long-term customer loyalty while allowing merchants to maintain full control of customer experience and data.
In 2025, consumers are projected to finance upwards of $325 billion in purchases using point-of-sale financing, ranging from four payments to longer-term installment loans. However, that financing comprises only 9–11% of a targeted $3.5 trillion market. Monthly payment plans for ecommerce and fashion are well-established, but significant headroom remains in offering flexible plans for purchases in healthcare, home improvement, auto repair, travel, pet care, education, and more – all of the sectors that ClarityPay services. In these categories, payment plan adoption has lagged due to lack of access, integration complexity, or outdated workflows; if financing were available, it would result in higher conversion rates for these types of purchases. ClarityPay’s differentiator is that it helps high-AOV businesses close more sales (90%+ meet the sale rates) and tailor pay over time programs that drive acquisition, average order value, and repeat revenue.
When we met Houman Motaharian, we knew he was capable of catching lightning in a bottle. Houman is a seasoned leader in financial services who brings a rare mix of operational discipline and market insight to lead the ClarityPay team. A former executive at American Express and Continental Airlines, he has scaled multiple lending tech companies and knows what it takes to bring a product to market.
ClarityPay’s growth in less than two years has been nothing short of impressive. In February, the company announced a $1 billion capital purchase program with funds managed by Neuberger Specialty Finance. Since then, ClarityPay has achieved profitability and is well on its way to building a market-leading lending solution for merchants. We are proud to lead ClarityPay’s latest funding round, and we look forward to supporting the team as they continue to scale the business.
