Defacto, a French lender, closed a securitization fund with Citi and Viola Credit for up to €167 million ($186.5 million). Citi will be the senior lender of the fund while Viola Credit has renewed its trust in Defacto by continuing its support as a mezzanine lender of the fund. This new facility allows Defacto to continue its exponential growth with a yearly funding capacity of up to €1 billion ($1.1 billion).
Founded mid-2021 by Jordane Giuly, Morgan O’hana, and Marc Henri Gires, Defacto provides seamless, flexible and instant financing to small and medium enterprises in Europe.
The securitization fund of up to €167 million ($186.5 million) will have an initial size of €67 million ($74.8 million), with increases subject to lender’s consent.
“We are delighted to secure this facility with Citi, one of the largest banks in the world, and having Viola Credit renewing its trust in Defacto’s team, strategy and product,” Jordane Giuly, cofounder and CEO of Defacto, said. “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.”
“Defacto has proven to have a sustainable business model in the B2B lending space,” Ruthi Furman, general partner and founder at Viola Credit, said. “The company, which was created mid 2021, has rapidly grown, while keeping its costs under control thanks to a strong focus on process and operational automatisation and on data. As Viola Credit, we are delighted to participate in this new facility, allowing them to decrease their overall cost of funding.”
