Embedded lending: Defacto closes €167m securitisation

Defacto a French API-based lender, has closed a €167m fund securitisation through a deal with Citi and  Viola Credit.

The new fund will have an initial size of €67m, with increases “subject to lender’s consent,” according to a media statement.

The new funding capacity will add up to €1bn to Defacto lending.

Citi is the senior lender of the fund. Viola Credit has taken the mezzanine portion of the securitisation.

Defacto was founded in mid-2021 by Jordane Giuly, Morgan O’hana, and Marc-Henri Gires, 

instant financing for SMEs across in Europe, enabling third parties such as B2B marketplaces to embed a lending solution directly in their own products. 

Defacto has now integrated with several partners such as Malt, Qonto or Pennylane, helping to lend €200m.

“In the current macro environment, this is an important milestone for enabling our growth with both existing and new partners and answering the financing needs of thousands of SME," said Jordane Giuly, cofounder and CEO of Defacto.