Novicap – the European fintech providing end-to-end working capital solutions – is today announcing it has raised a €200 million debt facility from London-based asset manager, Fasanara Capital.
The capital raise, which enables Novicap to further accelerate its growth and deliver more impact for thousands of SMEs, mid-market companies and public administrations, will be used to bolster its credit portfolio and support the development of new market-leading solutions for its customer base.
It comes at a time when Novicap’s proprietary technology platform has exceeded the €1 billion milestone in transaction volume as of Q3 2022, and follows the firm being listed as one of the 1,000 fastest-growing European companies, according to the Financial Times and Statista, for the third year in a row.
Novicap expands funding capacity to >€1 billion annual credit volumes
In today’s environment, mired by the prospect of rising rates and inflation, working capital financing is a robust alternative for fixed-income investors, as its portfolio diversification and short duration provide a natural hedge against such macroeconomic trends.
Previously difficult to access for investors because of heavy operational requirements, working capital financing as an asset class is today easier to reach thanks to technology-enabled actors like Novicap which provide origination, underwriting and servicing capabilities digitally.
The new funding agreement with Fasanara implies an additional capacity of over €1 billion of financing volume per year for Novicap. It also reinforces 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.
Another milestone in Novicap and Fasanara’s long-standing relationship
Fasanara - which counts the European Investment Fund among its institutional investors - 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.
This latest €200 million funding agreement marks the latest milestone in this long-standing relationship.
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.”
Federico Travella, Founder & 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, and provide them with the capital necessary to develop into scalable operations,”
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 having a direct impact on the real economy. We are thrilled to have witnessed their evolution from the early days to today’s funding agreement, through which we’ll support them and their customers in the next phase of growth.”