French B2B lender Defacto shores up to €167 million

The working capital debt funding round saw Citi act as the senior lender while existing investor Viola Credit renews its commitment.
French B2B lender Defacto shores up to €167 million

Parisian lender to SMEs by an API Defacto has secured up to €167 million in debt funding provided via Citi and Viola Credit. According to Defacto, the capital will be used to fuel additional growth as the company sets up a lending capacity of up to €1 billion. The funding is slated to have an initial size of €67 million, with increases subject to the lender’s approval.

Founded by Spendesk co-founder Jordane GiulyMorgan O’hana, and Marc-Henri Gires and offering SMEs load via an embedded approach, Defacto’s API offer provides third parties including B2B marketplaces, fintechs, and other digital platforms to embed the starupts’ financing solution directly in their own products. Ultimately, SMEs stand to benefit from an instant lending experience, while platforms increase their differentiation and customer satisfaction.

Defacto counts Malt, Qonto, and Pennylane amongst its client base and claims to have served over 7,000 European businesses spanning 5 countries over the last 18 months, distributing some €200 million in loans, a figure up almost 7x since the company's previous influx of capital last year.

On the loan Viola Credit’s Ruthi Furman comments, “Defacto has proven to have a sustainable business model in the B2B lending space. The company, which was created mid-2021, has rapidly grown, while keeping its costs under control thanks to a strong focus on process and operational automatisation and on data.”

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