Square has secured an investment from Victory Park Capital to significantly expand Square Capital, according to a press release. The investment will enable Square to extend hundreds of millions of dollars to tens of thousands of additional sellers who need capital to grow, according to the announcement.

Square has extended nearly $50 million in Square Capital to more than 10,000 independent businesses. Square's said its unique data offers a holistic understanding of a business' sales history, growth, cash flow and financial needs, enabling it to effectively offer capital to a wide array of companies. 

The opportunity for continued growth within the small business financing space is significant, Square said in the announcement. More than a third of merchants who have completed their first Square Capital advance have renewed for a second round of capital to make additional investments in their business. 

"We are pleased to be partnering with Square and believe they are uniquely positioned to serve their merchant base with another best in class product," Brendan Carroll, partner and co-founder, and Dan Schwartz, managing director with Victory Park Capital, said in a statement. “We've been tremendously impressed with Square Capital's data-driven approach to merchant finance, and we are confident they will achieve substantial growth in a dramatically underserved market."

Square Capital merchants have already processed more than $1 billion with Square and have used funds from the program to buy equipment and inventory, hire more employees and add new stores.