Bridge, a Citi-backed AI-powered lending platform, has announced the launch of a $500 million direct lending fund dedicated to financing CPG brands and retail suppliers fulfilling purchase orders for major U.S. retailers. Since spinning out from Citi in 2023, Bridge has deployed over $800 million, facilitating financing for hundreds of growing businesses. The new fund represents a significant expansion driven by demand from suppliers selling into large retail chains.
The financing gap that arises when a supplier wins a large order is a critical challenge in the retail industry. Suppliers must cover costs for manufacturing, raw materials, packaging, freight, and compliance before goods are delivered, and often long before retailers pay. This timing mismatch can force strong brands to drain operating cash, raise equity for routine production, delay fulfillment, or turn to costly and opaque financing options. Bridge's AI-driven platform addresses this by analyzing the business, the order, and the retailer relationship more deeply than traditional underwriting, enabling faster decisions and funding for suppliers that conventional lenders might overlook.
Rohit Mathur, CEO and Co-Founder of Bridge, emphasized the importance of this approach: “Retail is being reshaped by volatility in tariffs, freight, oil prices and consumer demand, and the pressure often lands first on the growing suppliers that have the least room to absorb it. Bridge is using AI to put capital to work for the businesses that need it. By analyzing the business, the order, and the retailer relationship more deeply than legacy underwriting allows, Bridge can move faster and get from no to yes for strong suppliers that traditional lenders might miss.”
The fund has already demonstrated impact through partnerships with major retailers. For example, Bridge funded DogSauce, a pet-food super broth meal topper, which expanded from 1,200 to 3,000+ Walmart stores on a single order that nearly doubled the brand's prior year revenue. Dakota Sheets, founder of DogSauce, noted, “When Walmart calls with an expansion like this, you don't want to say no. But the financing gap between production and payment is real, and Bridge makes it possible to fill the orders without giving up equity.”
Walmart has acknowledged the value of such financing options. Brandy Newhof, Senior Director of Global Treasury at Walmart, stated, “Bridge's Purchase Order Financing Program gives Walmart suppliers an additional option for funding their orders. Expanding the range of capital options available to our suppliers is one of the ways we support our supplier community.”
Bridge's underwriting is built around the specific payment cycles, fulfillment requirements, and operating realities of each retailer. The company funds up to 100% of a brand's production costs on expected or confirmed orders, with repayment structured around when brands receive payment. This forward-looking approach contrasts with traditional banks that look backward at historical profits and invoices. Harte Thompson, Co-Founder and COO, explained, “Plenty of lenders are happy to extend capital once a brand has delivered the goods and there's an invoice out. Lending against the credit risk of a major retailer like Walmart isn't hard. But Bridge supports growing brands when they actually need it, when they are building the inventory to fill an upcoming order. That's the moment capital is hardest to find, and when it's not there, good brands get pushed into expensive, opaque financing or dilutive equity raises just to fund routine production. Bridge was built for that moment instead.”
Access to production capital is essential for helping businesses scale and keeping shelves stocked. Bridge's AI-powered infrastructure is designed to provide fast, transparent, and tailored funding solutions, enabling suppliers to say yes to bigger orders without jeopardizing their operations. The fund's launch marks a pivotal step in Bridge's mission to transform how retail suppliers access capital, backed by investors including TTV Capital, Citi Ventures, Uncorrelated Ventures, Gilgamesh Ventures, Thayer Partners, and US Bank Ventures.
For more information, visit bridge.co or follow them on LinkedIn.
