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Novicap Hits €1billion in Transactions in 2022 as It Secures €200million Debt Facility

Barcelona-based fintech Novicap has raised €200million debt facility for its credit platform. The company is planning to accelerate growth and continue to help organisations grow with its end-to-end working capital solutions.

With market anxiety rising, inflation on the up, and a generally uncertain socioeconomic outlook, working capital financing is regarded by many as a robust alternative. It offers portfolio diversification and shorter durations. It’s not always been easy to access though, thanks to heavy operational requirements. That’s what companies like Novicap have been changing.

The Barcelona-based fintech firm has raised funding in a debt facility to help it expand. This will also enable it to provide its working capital solutions to more SMEs, mid-market corporates, and public administrations.

The details
  • €200million debt facility raised from Fasanara Capital
  • This comes as the firm hits over €1billion in transaction volume as of Q3 2022
  • The new funding agreement with Fasanara implies an additional capacity of over €1billion of financing volume per year for Novicap
Lois Duhourcau, CEO of Novicap
Lois Duhourcau, CEO of Novicap

Lois Duhourcau, CEO of Novicap, said: “Building on the relationship developed over many years, this new funding agreement is a major step in the scale-up of our credit solutions. Fasanara Capital is a pioneer in our asset class, and counting on their support in today’s markets is an invaluable asset. Together with the resources we have been adding to our SaaS solutions, this places us in an ideal position to help SMEs, mid-market corporates and public administrations manage their working capital.”

Driving business forward

Founded in 2014, Novicap’s tech platform offers credit and SaaS solutions that enable its customers to fuel business growth. It digitally provides origination, underwriting and servicing capabilities to SMEs, mid-market corporates, and public administrations.

This new funding goes a long way in reinforcing Novicap’s message to its target customer segments that while the traditional banking sector may be tightening credit availability in today’s market environment, Novicap’s technology-enabled credit solutions are a reliable alternative.

It also marks an important milestone for the city of Barcelona. This is evidence of its strong startup community, with plenty of potential for the years ahead. Both in terms of being a part of Europe’s growing entrepreneurial ecosystem, as well as the birthplace of powerful firms.

Developing the partnership

Federico Travella, founder and executive chairman of Novicap, said: “This new funding is a testament not only to Novicap’s performance and its inherent ESG focus, but also Fasanara’s ability to scout young, innovative fintechs. It provides them with the capital necessary to develop into scalable operations.”

Novicap supports thousands of businesses to help them deliver impact for their stakeholders. This has been furthered by the strong relationship with Fasanara who began purchasing receivables via Novicap in 2017. Over the past five years, Fasanara has progressively increased its participation to become one of Novicap’s leading credit funders.

Francesco Filia, CEO of Fasanara Capital, said: “Since we started investing via Novicap’s credit solutions, we have been impressed by the technology they’ve built. It enables Novicap to address a part of the market that is underserved by banks, thereby directly impacting the real economy. We are thrilled to have witnessed their evolution from the early days to today’s funding agreement. Through this, we’ll support them and their customers in the next phase of growth.”

With this new funding, Novicap will further accelerate its growth. It will also bolster its credit portfolio and support the development of new market-leading solutions for its customer base.

Author

  • Francis is a journalist and our lead LatAm correspondent, with a BA in Classical Civilization, he has a specialist interest in North and South America.

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