The funding comes from an equity-and-debt round, with Seventure Partners, a European venture capital firm, acquiring a stake in the startup. Additionally, the round saw participation from Financière Arbevel and Bpifrance, which provided some debt. Karmen, which was founded in 2021, focuses on democratising access to financing for businesses around France, with the company aiming to deliver solutions that are flexible and adaptable to meet the needs, demands, and preferences of each user. Additionally, Karmen delivers short-term loans to small companies facing work capital difficulties.
Considering the challenges that small businesses currently face in the market, including decreased access to capital, Karmen’s offering includes financing solutions ranging from EUR 30,000 to EUR 5 million, over periods of 2 to 24 months. By providing them with the required funds, the startup focuses on supporting SMEs in all the phases of their development, positioning itself as a complementary service to traditional financing options. Compared to traditional banks, Karmen natively implements its embedded financing API with partners, including ERPs, ecommerce marketplaces, and neobanks.
This funding round follows a previous one from June 2024, when Karmen obtained a EUR 100 million debt vehicle that performs as the basis for the startup’s short-term loans. Currently, several companies across France rely on Karmen to assist them in their cashflow difficulties. With the newly added EUR 9 million, Karmen aims to accelerate the deployment of its financing solutions, which are adapted to meet the needs of small and medium-sized enterprises (SMEs).
Commenting on the announcement, representatives from Karmen underlined their company’s commitment to becoming a partner to SMEs’ journeys, assisting them in navigating the complex and changeable economic landscape. The EUR 9 million is set to allow the startup to invest in the advancement of its credit scoring models based on AI. Moreover, Karmen plans to introduce additional credit solutions in 2025 to further serve the needs of its customers. These models are set to be more efficient due to an evolutionary approach that can adapt to market conditions. Also, Karmen aims to leverage the capital to improve its current offering, expanding its capabilities.
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