{"id":650212,"date":"2025-01-21T09:20:20","date_gmt":"2025-01-21T06:20:20","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/karmen-secures-9-4-million-for-its-revenue-based-financing-products\/"},"modified":"2025-01-21T09:20:20","modified_gmt":"2025-01-21T06:20:20","slug":"karmen-secures-9-4-million-for-its-revenue-based-financing-products","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/karmen-secures-9-4-million-for-its-revenue-based-financing-products\/","title":{"rendered":"#Karmen secures $9.4 million for its revenue-based financing products"},"content":{"rendered":"
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French startup Karmen<\/a> 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.<\/p>\n

It\u2019s a \u20ac9 million equity-and-debt round ($9.4 million at today\u2019s exchange rates) with Seventure Partners buying a stake in the small startup. Financi\u00e8re Arbevel and Bpifrance are complementing the round with some debt.<\/p>\n

The startup isn\u2019t the only company operating in this space that could be described as instant financing for SMEs. French competitors include Silvr, Defacto, Unlimitd<\/a> and Hero.<\/p>\n

The reason revenue-based financing has become a hot vertical is because banks and traditional financial institutions struggle to address SMEs at scale. It\u2019s a highly fragmented market with small margins. That\u2019s why tech startups are trying to fill that financing gap with a data-driven app<\/a>roach.<\/p>\n

Today\u2019s news<\/a> comes just a few months after Karmen secured<\/a> a \u20ac100 million debt vehicle that serves as the basis for the company\u2019s short-term loans. Six months later, it seems like quite a few companies are now relying on Karmen to fix their cashflow issues.<\/p>\n

Around 600 companies have used Karmen to buy inventory, pay suppliers, finance paid acquisition campaigns and more. Loans range from \u20ac20,000 to \u20ac3 million, from 2 months to 24 months.<\/p>\n

On average, the typical Karmen client borrows \u20ac200,000 with a six-month term. But as you can see, there\u2019s a wide diversity of financing options. Similarly, the smallest customers generate only \u20ac300,000 in annual turnover (those are most likely one-person businesses), while Karmen\u2019s largest customer generates \u20ac160 million in revenue per year.<\/p>\n

More importantly, Karmen has attracted some loyal customers, as 80% of the startup\u2019s customers contact Karmen several times per year to unlock a new debt line. Clients include Maison Kitsun\u00e9, Balibaris, Les Raffineurs and Alm\u00e9.<\/p>\n

While most companies contact Karmen directly, the startup has a hybrid distribution strategy. It partners with other fintech companies so that they can offer Karmen financing products to their own clients. Some ERPs, e-commerce marketplaces and business banks like Qonto already integrate with Karmen.<\/p>\n

This embedded financing strategy represents 40% of Karmen\u2019s clients right now. But the company says that it hopes it can raise that metric to 75% of new clients by the end of 2025.<\/p>\n

While most companies repay their loans without any issue, companies can sometimes struggle to repay what they owe.<\/p>\n

\u201cThis 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,\u201d Karmen co-founder and CEO Gabriel Thierry said.<\/p>\n

\u201cIn addition, we are investing heavily in our risk assessment technology<\/a> tool (thanks to AI) to strengthen this approach,\u201d he added. Hence, today\u2019s funding round.<\/p>\n

Karmen currently uses around 60 different financial metrics to score loan applications in near real-time. Its embedded strategy can also be leveraged to make smarter decisions \u2014 bank accounts, accounting software, ERPs and invoicing tools hold valuable data on a company\u2019s overall performance.<\/p>\n

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Image Credits:<\/strong>Karmen<\/span><\/figcaption><\/figure>\n<\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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\u2019s a \u20ac9 million equity-and-debt round ($9.4 million at today\u2019s exchange rates) with Seventure Partners buying a stake in the small startup. Financi\u00e8re Arbevel…<\/p>\n","protected":false},"author":1,"featured_media":650213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/techcrunch.com\/wp-content\/uploads\/2025\/01\/GettyImages-517202220.jpg?resize=1200,807","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[76556,28340,32232,74839,153771,153350,153772,70917],"class_list":["post-650212","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-fintech","tag-europe","tag-france","tag-fundraising","tag-karmen","tag-rbf","tag-revenue-based-financing","tag-startups"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/650212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=650212"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/650212\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/650213"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=650212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=650212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=650212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}