The fintech receives an envelope of 80 million euros, including 65 million in the form of debt, to continue its development. Deferred and split payment is becoming increasingly popular in Europe.
Split payment solutions never cease to thrill investors. After Alma who raised 49 million euros at the beginning of the year, it is the turn of his French rival Pledg to go through the financing box. The fintech announces that it has completed an operation for a total amount of 80 million euros with Portag3 Ventures and Aquiline Capital Partners, but also Smart Lenders Asset Management, Financière Arbevel and ODDO BHF.
In detail, this sum consists of fifteen million in “equity”, intended to finance its growth, and 65 million in debt lines. For the players in the sector, it is imperative to have cash flow to advance funds to its partners.
Partner of major merchants
Founded by Nicolas Pelletier and Benoît Liénart, Pledg was originally specialized in group purchases between friends and had raised 1.2 million euros in 2017. But that service hasn’t really taken off, and the company has pivoted to shifting and deferred payment.
The young growth offers its solutions in nine European countries and claims 300 customers, including Decathlon, Leroy Merlin, ManoMano, Odalys-Vacances, the Grand Prix de France. “We generate 80% of our turnover with twenty merchants,” explains Nicolas Pelletier. Pledg partners can hope to increase their revenues as consumers increasingly appreciate the benefits of split and deferred payment.
Pledg must find a place for itself in a competitive industry. “The split credit market is booming: around twenty players have entered the European market for ten years”, puts Jocelyne Amegan-Douaud, director at Exton Consulting, into perspective. “Below 90 days, it is not a question of credit but of ease of payment,” she explains. In Europe, the Swedish start-up Klarna was a pioneer and for example saw its valuation reach 31 billion dollars.
“The strength of split payment is that there is no feeling of debt. FinTechs, in particular, are able to very quickly analyze a client’s financial capacities (scoring in the jargon, editor’s note) and offer a very integrated digital journey, ”she continues.
Close to financial profitability
With its new resources, Pledg wants to continue investing in its product, launch a securitization mutual fund, and increase its workforce. “There are 23 of us and we want to increase to 40 employees in June,” says Nicolas Pelletier. To support its development, the company has just appointed Jacques-Olivier Schatz, the former boss of the neo-bank Nickel, as director of operations.
The fintech ensures that it will be able to process a volume of transactions of at least 200 million euros in 2021 and is already looking to the future. “We expect to be balanced in the third quarter of this year. And before the end of the year, we will have started or even completed new financing given our traction, ”explains Nicolas Pelletier. Appointment is made.