Defacto raised €15 million in a Series A funding round

Defacto, a Paris, France-based software company building credit infrastructure for small and medium companies, raised €15M ($16M) series A capital funding round.

The money was raised from investors led by Northzone, joined by existing shareholders Headline and GFC.

In addition to the equity round, Defacto also announced an increased lending capacity up to €400 million. Proceeds wil be used for internationalization in Spain, Netherlands, Belgium, and Germany.

Defacto founded in 2021 by Jordane Giuly, Morgan O’hana and Marc-Henri Gires, is developing an embedded lending API that gives small businesses access to instant, flexible financing. That involves a B2B2B go-to-market approach, as the company doesn’t distribute its credit offering directly to small companies, and rather other companies are embedding Defacto within their own products so that their customers can access Defacto’s products. The company says it works with with 15 B2B marketplaces, fintechs, and e-commerce platforms including Malt and Agicap and Pennylane, and distributed over €30 million in short-term loans.

Prior to this round, Defacto raised €3 million in a round led by Headline and GFC in 2021.