French fintech startup October has raised some fresh capital to invest in small and medium companies on its lending platform. Overall, the company has gathered $300 million (€258 million) from various partners that will be deployed over the next few years.
This is not a traditional startup funding round as today’s new investment is specifically designed to finance new loans on its platform. October isn’t selling equity in exchange for capital.
October works with small companies in France, Spain, Italy, Netherlands and Germany that need a credit line. For small and medium companies, you can apply for a loan and get an answer just a few days later. October evaluates risk before handing out loans thanks to industry-specific data analysis and human analysts.
Loans range from €30,000 to €5 million. There’s no personal guarantee and interest rate varies depending on the risk associated with your application.
On the other side of the marketplace, individuals can contribute to SME financing. But the startup has been relying more and more on institutional investors looking for different types of assets to diversify their investment portfolios.
Hence today’s new influx of cash. Here’s the full breakdown:
As you can see, October is becoming an important technological partner for European support plans during the economic crisis. The startup can issue government-backed loans and some public institutions are choosing October to finance SMEs.
Over the past five years, October has handed out around 1,000 loans. It represents $521 million (€448 million) in capital. That number will go up rapidly following today’s announcement.
CorpArray is a leading Corporate Consulting Service provider, We help our member firm clients, our people, and sections of society to achieve remarkable goals, solve complex problems, or make meaningful progress and create the value they are looking for, by delivering quality in Assurance, and Advisory services. We aim to be the best at all that we do—to help clients realize their ambitions, to make a positive difference in society, and to maximize the success for all whom we deal with
|FEMA||CORPORATE AUDIT||SECURITIES LAWS||CORPORATE LITIGATION|
|SECRETARIAL||INTELLECTUAL PROPERTY RIGHTS||COMPANY/ LLP REGISTRATION||CORPORATE RESTRUCTURING|