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CompanyProfile

Innovative tools, services, funding for SMBs

alamata was founded in 2013 by Steven
Mandis, a financial services executive who
now serves as the company's chairman. The
K company provides technology, data analyt-
ics services and fast financing to small business owners,
Mandis stated, noting the company finances $10,000 to
$750,000 to underserved small businesses nationwide in
as little as 24 hours. In addition, the company is looking
to add and integrate its fast processes, tools and proce-
dures with payments. ISO/MLS contact:
"Square went from payments to capital," Mandis said Steven Mandis
"Kalamata is going from capital to payments. Square
markets directly to entrepreneurs, typically with less Chairman
than $250,000 in annual revenues. Kalamata markets via 800-200-4071
sourcing partners and ISOs to small businesses, typically
with more than $250,000 in annual revenues." steven@kalamata.com
Mandis went on to say that the company integrates fast www.kalamata.com
and easy tools, services and financing to better serve
small business owners. On a typical day, Kalamata pro- to $500,000 in monthly residuals. The key items for us are
vides capital to between 10 and 30 small business owners the monthly net residuals and attrition by merchant and
who can choose an array of optional value-added tools, volume as well as breakdown of the merchants by indus-
resources and services designed to help them create jobs try code and percentage of net residuals."
and scale their companies, he noted.
Year-over-year growth
Reseller, portfolio opportunities
As he reflected on Kalamata's year-over-year growth,
Mandis, who formerly held leadership positions at Gold-
"Providing working capital doesn't only help small busi- man Sachs, McKinsey & Co. and Citigroup, said the com-
nesses but also helps our sourcing partners and ISOs pany averaged 400 to 500 applications for capital per day
reduce attrition by providing valuable services," Man- in 2021 while providing additional resources, services
dis said. To illustrate this point, he noted that Kalamata and benefits to small business owners.
doesn't have a direct sales model but instead markets its
small business products, services and financing solutions Mandis credited Kalamata's success to an exemplary
through ISO and ISV sales channel partners. These chan- team of over 80 employees. "We paid special bonuses to
nel partners can syndicate their own deals and white la- employees who volunteered to take temporary pay reduc-
bel Kalamata's product and service offerings under their tions during the pandemic," he said. "Due to the employ-
individual companies and brands, he added. ees' actions, Kalamata did not furlough any employees
during COVID-19."
Kalamata is also interested in purchasing portfolios and
partnering with payments enterprises—and offers attrac- Looking ahead, Mandis observed that Kalamata will con-
tive terms, Mandis stated. While Kalamata may offer 42 tinue to evolve and adapt to better serve small business
to 48 times for monthly credit card payments residual owners and its sourcing partners and ISOs while explor-
portfolios (net of agents/ISO fees), it may consider higher ing adjacent opportunities in the acquiring space, which
valuations from 40x to 50x, based on contributing factors may include acquiring or partnering with companies that
such as bank and processor channel relationships, low provide advisory services to lower credit card payments
attrition, BIN/portability, portfolio diversification, seller fees, he stated.
guarantees, size of monthly residuals/economies of scale,
and cost of servicing, he explained. "Kalamata will purchase credit card residual portfolios
and look at other acquisitions and partnerships in the
"We also can structure loans against monthly residuals payments area," Mandis said. "Payments companies are
where the owner gets the interest deduction of the loan or realizing that providing capital improves client relation-
structure a loan and then option to purchase providing ships and lowers attrition. However, it is better to partner
the owner an interest deduction and possible deferral of with Kalamata than underwrite balance sheet and service
sale," Mandis said. "Generally, we are looking for $50,000 deals."
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