FreshBooks, a Toronto-based leader in cloud accounting software for small businesses, has secured $125 million in senior debt financing from Morgan Stanley Investment Management.
The funds, managed by Morgan Stanley Expansion Capital and Morgan Stanley Private Credit, will be used to refinance existing debt and support the company’s ongoing growth in North America.
FreshBooks’ intuitive SaaS platform is designed for service-based small and medium-sized businesses, helping users manage tasks such as invoicing, receiving payments, time tracking, and payroll. The company has a strong customer base in both the U.S. and Canadian markets.
“We’re thrilled to partner with Morgan Stanley’s Expansion Capital and Private Credit groups, who support our vision of empowering small business owners through technology,” said FreshBooks CEO Shaheen Javadizadeh. “FreshBooks looks forward to leveraging their expertise in this next chapter of growth.”
Morgan Stanley executives echoed their confidence in the company’s trajectory.
“We believe FreshBooks has a tremendous market opportunity ahead of it,” said Pete Chung, Head of Morgan Stanley Expansion Capital, and Ashwin Krishnan, North America Co-head of Morgan Stanley Private Credit, in a joint statement.
“Its SaaS accounting software benefits from strong secular tailwinds, including increasing digital transformation and a shift to global e-invoicing and payments digitization.”
Founded in 2003, FreshBooks has become a go-to financial platform for millions of small business owners worldwide.
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