France-based fintech firm Karmen has raised €50m in debt financing from Fasanara Capital, a UK-based asset management firm.
With the investment, revenue-based financing fintech Karmen intends to expand the range of SMEs that it can work with.
The latest round of investment comes 10 months after its first round of financing of €22m, including €3m in equity and €19m in debt, also from Fasanara Capital.
Fasanara Capital recently won a $200m mandate from one of Canada’s largest pension funds to further its global expansion and channel cash into fintech firms around the world.
Daniele Guerini, partner at Fasanara Capital said: “Access to finance is becoming increasingly difficult for SMEs, in an increasingly difficult macroeconomic environment. We are proud to support Karmen, our first investment in France, in their mission to democratise access to instant capital for French SMEs.”
Karmen said it is adapting to the changing macroeconomic model by extending its offerings to all SMEs, so they can receive the financing they need for growth.
Gabriel Thierry, chief executive officer and co-founder of Karmen, said: “With rising inflation, volatile commodity prices and the end of low interest rate policies, the paradigm of the VSE/SME financing market is changing.
“In this context, alternative solutions, focused on technology and speed of financing, are gaining momentum and taking precedence over traditional credit offers.”
Karmen, founded in 2021, allows businesses to securely share their data from its suite of products, through its plug and play digital platform, to assess its credit risk and eligibility of financing.
Depending on the product offered—Karmen offers Grow, Runaway and Invoice—a business may be able to obtain 100% non-dilutive financing, ranging from €10,000 to €5m, within 48 hours.