Dutch fintech startup Floryn, an online lending market for small and medium-sized enterprises, has raised €9 million from Endeit Capital, supported by existing investors such as Peak Capital. While some of the funding will go to product development, the majority will go to domestic and international expansion.
In a press release, Floryn says demand for business loans in Europe has skyrocketed by 98 percent. The company was recently accepted to the Dutch loan guarantee scheme BMKB-C, which was set up to help SME entrepreneurs during the coronavirus crisis. Floryn believes its digital lending platform is in a better position to serve borrowers, compared to traditional banks.
"The need for online loans with a good customer experience and quick credit assessments has increased rapidly now that the world is adjusting to a new normal," said Sven van der Biezen, CEO and co-founder.
The fintech startup offers business loans of up to €2 million. Thanks to machine learning, the lending platform performs fast risk assessments based on recent banking transactions and other data points rather than potentially out-of-date financial statements. The B2B company claims that, as a result, its percentage of losses is below 2 percent. Founded in 2016 and based in the Jheronimus Academy of Data Science, Floryn employs about 50 people and secured €60 million in debt financing from NIBC this past December.
Photo: Floryn co-founders Marijn van Aerle (CTO), Sven van der Biezen (CEO) and Gion van den Bogaert (CFRO)