French startup Lendix has raised a brand new funding spherical of $37 million (€32 million). With this new inflow of money, the startup has one aim in thoughts. It desires to grow to be the main lending market of Continental Europe.
Idinvest and Allianz are main the spherical, with CIR SpA (De Benedetti’s holding agency) additionally collaborating. Present buyers Partech, CNP Assurances, Decaux Frères Investissements and Matmut are additionally collaborating as soon as once more.
As of right this moment, individuals dwelling in France, Spain and Italy can signal as much as lend cash to firms established in these three international locations. However the startup is already working arduous to develop to the Netherlands and Germany earlier than the tip of the yr. Subsequent yr, Lendix plans to function in 7 international locations.
And it looks like it’s changing into simpler to launch new markets. There at the moment are fairly a number of customers and institutional buyers on the platform. Lendix doesn’t want to draw Dutch customers to start out lending to Dutch firms. French, Italian and Spanish customers are already keen to place some cash in Dutch firms. It’s a real European consumer base as a result of everyone makes use of the identical forex.
With right this moment’s funding spherical, it’s going to be simpler to launch in Germany. “Once you need to open in Germany — and that’s our present plan — it’s tougher to recruit when you don’t have a German model title behind you,” co-founder and CEO Olivier Goy informed me.
That’s why Allianz goes to be greater than only a monetary backer. As an example, the insurance coverage firm goes to advertise Lendix to its company purchasers in order that they give thought to Lendix if they should borrow some cash.
It’s one other proof that Lendix doesn’t need to be a French firm that operates in different international locations. The corporate additionally has opened an workplace in Madrid and one other one in Milan with native groups.
Lendix remains to be a drop within the bucket in comparison with conventional financial institution loans. However the firm desires to distinguish its product providing from common banks as a lot as attainable.
Proper now, when an organization requests a mortgage, the corporate’s algorithms are going to work on a fundamental credit score scoring. After that, any individual calls the corporate to ask a number of questions. The Lendix crew can concentrate on extra particular data.
“We even have developed a device referred to as Iris,” CTO Benjamin Netter informed me. “It’ll grow to be the most important intelligence database for European firms.”
France is main the best way in the case of open information. Now you can entry the registry of commerce, the identification quantity database and necessary incorporation occasions. However it’s a large number if you wish to entry this information. There are completely different file codecs, and the identical database makes use of completely different fields relying on the area of France.
Lendix has been parsing all this information to show it into an actionable database. This manner, Lendix can get a transparent overview of firms that apply for a mortgage.
The corporate doesn’t plan to cease there. You may use Iris to detect some fraud patterns. As an example, an individual may hold incorporating new firms and shutting them down rapidly.
Finally, you might attain out to firms earlier than they should apply for a mortgage. Netter talked about a restaurant referred to as Avenue Bangkok. They’ve opened three eating places over the previous six months. It’s clear that they may want some cash in some unspecified time in the future to spend money on new eating places. Lendix Iris may spot these patterns.
Lendix remains to be nowhere close to as large as Funding Circle. However the firm thinks there’s sufficient room for a number of gamers on this area. Each can develop on the identical time by competing with conventional banks.
And it begins by being sooner than a conventional financial institution. Firms get a fee inside 48 hours. “Our aim is that it is best to be capable to get a fee inside half a day,” Goy mentioned. Banks could have a tough time supplying you with a solution so rapidly.
Disclosure: I share a private reference to an govt at CNP Assurances.