French lendtech October raises €258m
French credit fintech, October, has raised €258 million for investment in small and medium-sized enterprises (SMEs) in Europe.
October provides SMEs with credit lines and a loan it guarantees to offer a few days after an application. The firm says it uses intricate data and analysis to ensure that its loans are risk-free.
The fintech offers loans ranging from €30,000 to €5 million. Interest rates are variable on depending on the risk profile associated with an applicant.
It claims to have handed out more than 1,000 loans since 2014 with a combined value of more than €448 million.
October has relied on institutional investors to provide it with the cash to funnel into SMEs and European businesses during the COVID-19 pandemic.
It currently provides services in France, Spain, Italy, the Netherlands, and Germany.
The €200 million will focus on helping Italian SMEs in cooperation with Intesa Sanpaolo Group, while €38 million will be used for the tourism and hospitality industry, and €20 million will go towards traditional SME loans.
“These investors were all won over by October’s technology,” says October founder and CEO Olivier Goy.
“[It] allows them to efficiently deploy large sums while respecting standardised processes following precise and tailor-made risk policies.”