Titritis, long reserved for traditional actors in consumer credit or real estate, becomes a strategic weapon for young technological companies. It allows fintechs and Defacto to refinance their loan portfolio in an industrialized manner, by mobilizing the structured private debt to meet massive demand. By associating with Citi as a senior lender and Viola Credit on the mezzanine, Defacto doubles almost the size of his fund, brought in 2023 to 167 million euros.
This financial lever offers the startup an annual financing capacity of 1.8 billion euros, intended to support the working capital needs (BFR) of European SMEs. Unlike traditional banks, Defacto operates on a “API-STH” model, its partners whether they are neobancs, accounting software, or B2B platforms, directly integrate its financing solutions in their interface. Credit becomes a simple on -board function, triggered on the fly, according to customer requests.
This approach allows unprecedented scalability. In less than three years, Defacto has funded nearly a billion euros for 14,000 customers. Its model is based on the automation of the credit life cycle, the exploitation of data in real time, and a prudent risk management via direct access to the business tools of its partners (Qonto, Malt, Pennylane, etc.). In May 2023, the Fintech even launched a “low-tech” version to allow networks of accountants or professional associations to offer in turn financing solutions.
If Defacto stands out for its model of Embedded Finance backed by a solid banking infrastructure, several players try to win on related segments. In France, Karmen and Unlimitd offer income-Based Financing solutions for digital SMEs, but without logic of embedded integration via API. In Europe, fintechs like Banxware (Germany) or Youlend and Liberis (United Kingdom) also develop integrated B2B credit models, often in partnership with payment or e-commerce platforms, but little Combine both API integration, financing company approval, and refinancing structured by securitization.
In a context marked by the rise of private credit in Europe, this operation confirms the viability of a hybrid model where technology, financial infrastructure and structured debt converge. The transition to compulsory electronic billing in 2026 will play full to further accelerate the adoption of these integrated solutions.
Defacto was founded in mid 2021 by Jordane Giuly, Morgan O’Hana and Marc-Henri Gires. The company is approved as a financing company and operates from France. The new securitization of 300 million euros was structured with Citi as a senior lender and Viola Credit as a mezzanine lender. The product of this operation will extend the annual financing capacity to 1.8 billion euros. Defacto has financed nearly a billion euros for more than 14,000 European companies. It has 27 employees. Its headquarters are located in Paris.
