October is hoping to raise €250m for its latest fund and is more than halfway there, with over €134m raised so far.
French alternative lender October scooped a €20m (£17.8m) boost to its latest fund from Italian digital lending platform Cassa Depositi e Prestitir (CDP).
The fresh cash has been put towards October’s SME IV fund, which is aimed at providing funding, from €30,000 up to €5m, to Italian SMEs.
So far, October has raised over €134m (£119m) for its latest fund, with a target of €250m (£222m), from large European institutional investors such as the French Public Investment Bank (Bpifrance), the European Investment Fund (EIF) and the Spanish Official Credit Insitute (ICO).
Paolo Calcagnini, chief business officer at October, said: "With the investment in the October SME IV Fund, CDP continues its plan to support Italian SMEs and Small-Mid Caps, particularly after the severe health emergency that hit our country.”
“The investment in diversified credit funds, which stands alongside the Basket Bond operations, aims to reach companies that for their size or the specific intervention, are not reachable by CDP in a direct way.”
October is also hoping that with CDP’s involvement, institutional investors will be encouraged to participate in the fundraise.
Sergio Zocchi, CEO of October Italia, added: "Supporting businesses is part of our DNA, but never as much as in these complicated months and in view of the coming months have we felt the responsibility and pride to create the conditions to amplify the reach of our platform.”
“The choice of CDP, which confirms its capacity for a vision towards innovation, translates into the possibility for many more businesses to use financing tools that are complementary to traditional channels, capable of responding quickly to the demand for resources, now more crucial than ever to overcome the contingency and start growing again".
The latest fund comes after the lender pledged €258m to European SMEs back in September 2020, isolating €200m specifically for the Italian government-backed lending scheme.
October helps SMEs across Europe to borrow directly from individual and institutional investors without having to go through banks and has already financed in excess of €515m (£458m) to over 1,200 SMEs across France, Spain, Italy, The Netherlands.