Karmen closes its €22 million seed round to democratize Revenue Based Financing in France
The French fintech becomes the reference in Revenue Based Financing in France, to accelerate the growth of digital companies.
Karmen announces that it has closed a €22 million equity and debt financing round, led by Fasanara Capital, Samaipata and Business Angels. With this transaction, Karmen becomes the leading Revenue Based Financing solution in France for digital businesses. This will allow the company to deploy its non-dilutive financing solution dedicated to the subscription economy on a large scale. Karmen is also preparing to expand into Southern Europe by partnering with a European credit institution. To support its growth, the startup is recruiting 20 new talents in 2022.
Karmen, created 8 months ago, is the only company to have developed an offer entirely dedicated to players in the subscription-based consumption sector (SaaS, business services, B2C subscriptions, apps, gaming, etc.). France is the European country where subscription-based consumption is growing the fastest, at 19% per year over the next 4 years, to reach 11.2 billion euros in 2025 (1) Source: European study conducted by Telecoming, leader in the digital economy
Karmen was founded on the following observation: "The world is subscribing and subscription is becoming the dominant business model in the digital economy. And yet, traditional financing options, mainly fundraising and bank loans, have not evolved," explains Baptiste Wiel, co-founder of Karmen. "Raising funds leads to an irreversible dilution of capital, while bank credit remains unavailable. Banks rarely grant credit to digital companies, which have few assets to offer as collateral. This is where Karmen comes in with a new solution: Revenue Based Financing."
"Revenue Based Financing is a faster and more flexible financing solution than bank financing or fundraising, as it allows companies to generate immediate cash flow based on future revenues," said Gabriel Thierry, co-founder and CEO of Karmen, adding, "We have the most advanced technological tool on the market today to determine whether or not a company is eligible for financing in a record time of less than 48 hours. Our mission at Karmen is to help digital companies optimize their cash flow. Our Revenue Based Financing solution is today a first product dedicated to the subscription economy that will, in time, be complemented by other cash flow optimization solutions and tools for subscription players."
For digital businesses, Karmen's technology solution is simple, transparent and secure. Its plug-and-play digital platform allows players to securely share their suite of tools: billing (Stripe, Checkout, GoCardless, etc.), accounting, and banking (via OpenBanking) in minutes. The data received is then processed by a proprietary scoring algorithm that evaluates the credit risk and determines in less than 48 hours whether the actor is eligible for financing or not.
"We were impressed by the speed of execution, the in-depth knowledge of the market and the level of ambition of Karmen's founding team. We are delighted to be able to support them operationally on a rapid international expansion in some strategic geographies in Southern Europe" explains Aurore Falque-Pierrotin, VC for France at Samaipata.
Today, Karmen is the only player in France backed by an institutional financial institution, in this case Fasanara Capital, "which allows us to offer ultra-competitive financing to companies. With them, we have the largest and most scalable deployment capacity in France," concludes Gabriel Thierry, co-founder and CEO of Karmen. Karmen's ambition is to raise a Serie A in November 2022 to start the year 2023 in the right way!
Karmen is a French Fintech created in 2021 by Sébastien Lubineau, co-founder & CTO - Baptiste Wiel, co-founder & COO, Gabriel Thierry, co-founder & CEO. Karmen is the leading Revenue Based Financing solution in France to accelerate the growth of digital companies. Karmen offers non-dilutive financing solutions, indexed to the turnover of these companies which evolve in the subscription-based consumption sector (SaaS, business services, B2C subscriptions, apps, gaming, etc.). Karmen's plug and play digital platform allows players to securely share their suite of tools: billing, accounting, and banking to assess credit risk and determine in less than 48 hours whether the player is eligible for financing or not.
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