Defacto Secures €15M Led by Northzone With Headline, and GFC to Become Europe’s Largest API-first B2B Lending Platform
Founded in June 2021 by Jordane Giuly, the former co-founder of Spendesk (the spend management platform recently valued over €1.5B), Morgan O’hana, and Marc-Henri Gires, Defacto provides seamless and instant financing to small and medium enterprises (SMEs).
The Series A round of €15M, led by new investor Northzone (backer of FinTech Klarna,) includes Defacto’s seed backers Headline and Global Founders Capital, and angel tickets from Thibaud Elzière (founder of eFounders), Rodolphe Ardant (founder and CEO of Spendesk), Didier Valet (former deputy CEO at Societe Generale), and Victoria van lennep (founder of Lendable).
Built with a “Capital by API, not paperwork” mindset
Defacto provides loans and credit to SMEs via its embedded finance platform. Its API-based product enables third parties such as marketplaces, ecommerce platforms and others to embed its products directly in their own products, integrating in a seamless way.
Its technology-first approach focuses on providing access to working capital to SMEs, a segment underserved by traditional actors, especially in today’s adverse macro-economic environment.
“Cash flow and access to liquidity are once again reasons for concern due to inflation, repayment of state covid loan and rising interest rates. An EY study estimates that in France alone, over 40.000 businesses will fail. It was 28.000 in 2021” adds co-founder Morgan O’hana. “We are building a product for builders, not bankers. Access to capital should be fair and instant. Banks rely on data that is at least 18 months old and then take 4 months or longer to process loan applications.”
Since its launch in France, Defacto built partnerships with over 15 leading B2B marketplaces, FinTech companies, and e-commerce businesses. It distributed over €30m in short-term loans to SMEs through partners such as freelancing platform Malt or fintechs such as Agicap or Pennylane.
Frederic Tan, Product Director at Malt: "We decided to work with Defacto for its flexibility, the quality of its API, and the integration experience. They have been a great ally in our challenge to offer an even more delightful and seamless payment experience for our clients and freelancers. The team is always available and responsive: a pleasure to work with!"
Instant access for SMEs
“Businesses are interacting more and more with digital platforms. Those interactions generate a large amount of data in real-time, which Defacto is leveraging to redefine how underwriting should be done. Banking institutions will never have the right information systems to process this flow of alternative data, to reach real-time and tailored lending offers” says Defacto’s co-founder and CTO Marc-Henri Gires.
"Jordane, Morgan, and Marco are building an incredibly exciting proposition within the B2B space, a category where they are poised to become a leader. B2B commerce is significantly larger than B2C commerce and most of the solutions for buyers and sellers around checkout financing have been lacking technology-led thinking. The explosion of SME platforms will create significant opportunity over the coming years and Defacto we believe has the potential to be at the forefront of these market developments." adds Kilian Pender, a Partner at Northzone joining Defacto's board.
Thanks to a new €400M lending capacity Defacto is now rolling out its solution to Germany, the Netherlands, Belgium and Spain. “Finance needs to shift towards real-time data and processes. Small and medium businesses make for 99% of all European businesses. Yet traditional banking is increasingly shy in supporting them. Defacto’s Capital by API provides entrepreneurs with forms of credit that not only scale with their needs but are also more fair and transparent. It’s an engine for growth. I have rarely met a team so customer-focused and achieving so much in one short year” comments Jonathan Userovici, a Partner at Headline and Defacto’s Seed round lead.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
SINOVAC joins hands with HKU-CTC research team and Gleneagles Hospital Hong Kong to kick off a clinical trial of an Omicron-specific inactivated vaccine for booster use in Hong Kong, China4.7.2022 14:30:00 EEST | Press release
A kick off ceremony was held at Gleneagles Hospital Hong Kong (Gleneagles or GHK) for initiating a clinical trial to assess the safety and immunogenicity of the SINOVAC’s Omicron-specific COVID-19 inactivated vaccine used as a booster shot in healthy adults, in anticipation of providing scientific evidence for future immunization strategy. This study is led by a medical research team of the University of Hong Kong Clinical Trials Centre (HKU-CTC) in collaboration with Gleneagles. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220704005146/en/ [From right to left] Professor Ivan Hung Fan-ngai, Ru Chien & Helen Lieh Professor in Health Sciences Pedagogy, Clinical Professor and Chief of Infectious Diseases, Department of Medicine, School of Clinical Medicine, Assistant Dean (Admissions), LKS Faculty of Medicine of The University of Hong Kong; Dr Kenneth Tsang, CEO of Gleneagles Hospital Hong Kong; Ms. Cheryl Law, International
BearingPoint Appoints 19 New Partners Across Europe4.7.2022 10:58:00 EEST | Press release
Management and technology consultancy BearingPoint announced today that it has appointed 19 new Partners across Europe. 14 Partners have been internally promoted, and five Partners joined BearingPoint from outside the firm. The appointments underline the firm’s ongoing success and growth and the ambitions defined in its Strategy 2025: putting people in the center, outperforming the market every year, and being in the top three in chosen areas of expertise. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220704005035/en/ Kiumars Hamidian, Managing Partner BearingPoint. (Photo: Business Wire) Kiumars Hamidian, Managing Partner BearingPoint, said: “It is a real pleasure that we were able to promote internally 14 new Partners to our Partner-led firm. All of them have reached this important milestone based on their exceptional abilities, deep industry expertise and outstanding commitment to serving our clients. In addition to our
VOOPOO Unveils 3 New Products, Telling Story of Its 8-year Entrepreneurship Journey in 30 Minutes4.7.2022 10:15:00 EEST | Press release
VOOPOO’s 2022 "More Than Infinity" virtual product launch was held on June 29, 2022, where VOOPOO took 30 minutes to review its brand story during the past 8 years since its founding, expounding the connection between the “infinity symbol” and the brand spirit and demonstrating its commitment to creating infinite new possibilities using technology in 3 chapters. Meanwhile, the event was highlighted by 3 POD products featuring VOOPOO’s most cutting-edge technology. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220629005586/en/ Infinite innovation: The new product launch, backed by atomization platforms and chip development, manifests VOOPOO’s R&D strength. (Graphic: Business Wire) A very important theme at the virtual event was telling the growth story of VOOPOO since its founding 8 years ago. Evolving from an atomization chip solution provider to today’s industry leader of open electronic atomization, VOOPOO has driven the
AGILA Pet Insurance becomes part of JAB Backed Pinnacle Pet Group, to create a Leading Pan-European Pet Insurance Platform4.7.2022 10:00:00 EEST | Press release
JAB Holding Company ("JAB") and WERTGARANTIE Group today announced a strategic partnership whereby JAB's European pet insurance platform, Pinnacle Pet Group ("PPG") will acquire 100% of the shares in AGILA Tierversicherung AG (“AGILA”), the German market leader in pet insurance, from the WERTGARANTIE Group. In return, the WERTGARANTIE Group will become an investor in PPG. The transaction is expected to close in Q4 2022, subject to customary closing conditions, including regulatory approvals. The parties have agreed not to disclose the financial details of the transaction. With JAB’s support, PPG will be built into a leading Pan-European platform for animal insurance through strategic investments and organic growth. The WERTGARANTIE Group will also continue to support PPG successful German activities as a relevant shareholder. AGILA will be an essential component of PPG's expansion. All employees at the Hanover headquarters will join the platform and will play a key role in PPG’s expans
Port Decarbonization: the First High-powered Hydrogen Barge for the Electrification of Ships at Berth4.7.2022 09:00:00 EEST | Press release
Hydrogène de France (“HDF Energy”) – Euronext Paris: HDF – and its partners of the ELEMANTA H2 project announce the signature of an MoU to deploy mobile solutions providing, from green or low-carbon hydrogen, cold ironing services complementing the electrical grid, for container ships, cruise ships or tankers. ELEMANTA H2 will also enable hydrogen bunkering to meet the refueling needs of future hydrogen ships. Maritime transport accounted for 13.5% of European total greenhouse gas emissions in 2018. In order to reach the European objective of reducing greenhouse gas emissions by 55% by 2030, the sector must accelerate its energy transition. ELEMANTA H2 aims to contribute to the decarbonization of port activities. The partners have identified the Port of Rouen and the Rubis Terminal location as a pioneer site because of its strategic position close to Paris. With the support of Normandie Energies and the port operator HAROPA, a demonstration barge will embed a high-power hydrogen fuel c
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom