Defacto raised €3M in a round led by Headline and GFC.

Defacto, a Paris, France-based software company building credit infrastructure for small and medium companies, announced closing a €3M ($3.5M) capital funding round.

The money was raised from investors led by Headline and GFC, joined by a range of angel investors including Thibaud Elzière, Rodolphe Ardant and Arthur Waller. In addition to the equity round, Defacto also raised $3.4 million in debt.

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.