Karmen secures $9.4 million for its revenue-based financing products
French startup Karmen has secured a small funding round so that it can improve its instant financing products. The company offers short-term loans to small companies facing a working capital crunch.
It’s a €9 million equity-and-debt round ($9.4 million at today’s exchange rates) with Seventure Partners buying a stake in the small startup. Financière Arbevel and Bpifrance are complementing the round with some debt.
The startup isn’t the only company operating in this space that could be described as instant financing for SMEs. French competitors include Silvr, Defacto, Unlimitd and Hero.
Revenue-based financing has become a hot vertical because banks and traditional financial institutions struggle to address SMEs at scale. It’s a highly fragmented market with small margins. That’s why tech startups are trying to fill that financing gap with a data-driven approach.