Karmen, a French startup specializing in instant financing products, has recently secured €9 million in an equity-and-debt round led by Seventure Partners. This significant funding marks a new chapter for the company, which aims to expand its innovative financial offerings. Utilizing over 60 financial metrics, Karmen assesses loan applications in near real-time, providing businesses with swift access to capital. The startup partners with fintech firms to integrate its financing products into their platforms, enhancing accessibility for a diverse range of clients.
Since its inception, approximately 600 companies have leveraged Karmen's services to facilitate business operations such as inventory purchases, supplier payments, and acquisition campaigns. Karmen's clientele spans from small enterprises with €300,000 in annual turnover to large corporations generating up to €160 million in revenue. Typically, a Karmen client borrows around €200,000 over a six-month term, though the company offers loans ranging from €20,000 to €3 million with durations between two and twenty-four months.
Karmen's embedded strategy allows businesses to make informed financial decisions by integrating with bank accounts, accounting software, ERPs, and invoicing tools. This approach currently accounts for 40% of Karmen's clientele. Looking forward, the company aims to increase its instant financing product adoption to 75% of new clients by the end of 2025. While most businesses reach out to Karmen directly through its hybrid distribution strategy, the company has also garnered a loyal customer base. A remarkable 80% of clients contact Karmen multiple times per year to unlock new debt lines.
The company's €100 million debt vehicle underpins its short-term loan offerings. Several enterprise resource planning systems (ERPs), e-commerce marketplaces, and business banks, such as Qonto, have already integrated with Karmen's systems. Gabriel Thierry, a representative from Karmen, emphasized the company's commitment to risk management:
"This is part of our job as a lender. But we limit these risks through our data-driven approach, which allows us to have very granular visibility into the financial and operational performance of our clients," – Gabriel Thierry
Furthermore, Thierry noted Karmen's investment in advanced technology:
"In addition, we are investing heavily in our risk assessment technology tool (thanks to AI) to strengthen this approach," – Gabriel Thierry
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