Just 10 months since hauling in €22 million, formerly known as revenue-based financing startup Karmen now adds another €50 million to its accounts, all aimed at providing working capital to growing SMBs.
Starting off life as an RBF provider, that which is tied to recurring revenues, this new injection of capital provided by Fasanara Capital will see Karmen’s non-dilutive offer further extending to all VSBs and SMBs, indexed to the company’s turnover. Just as with RBF, Karmen uses an API to connect to a startup’s financials and runs it through a proprietary credit risk algorithm that accounts for invoicing, accounting, and banking information, and offer a loan ranging between €10,000 to €5 million within 48 hours.
Founded in 2021, and receiving their first institutional investment in January of this year, according to Karmen, they’ve been able to support more than 60 companies, and now with an additional €50 million line of credit, is one step closer to its goal of having an annual deployment capacity of €150 million throughout France.
Commenting on the company’s decision to widen its funding offer, Karmen CEO and co-founder Gabriel Thierry said, "With rising inflation, volatile commodity prices, and the end of low-interest rate policies, the paradigm of the VSB/SMB financing market is changing. In this context, alternative solutions, based on technology and speed of financing, are gaining strong momentum and taking over from traditional credit offers.”
While tech layoffs abound, Karmen is a ray of hope, as the growing company currently employs a staff of 20 and is aggressively recruiting in the areas of sales, marketing, credit, and partnerships.
To date, Karmen has raised a total of €72 million, €69 million of which is debt funding.