News Summary

French startup Karmen has raised €9 million ($9.4 million) in an equity-and-debt funding round to enhance its revenue-based financing products. This funding round included investment from Seventure Partners, with additional debt from Financière Arbevel and Bpifrance. Karmen provides short-term loans to small and medium enterprises (SMEs) experiencing working capital issues and has served around 600 companies. The startup’s approach stands out in the fragmented SME financing market by using data-driven risk assessment technology. Karmen has also developed a hybrid distribution strategy, partnering with fintech companies, ERPs, and e-commerce marketplaces to integrate its financing solutions. The company aims to increase its embedded financing clients from 40% to 75% by 2025. Karmen’s clients include well-known brands such as Maison Kitsuné and Balibaris. The recent funding will also support the advancement of Karmen’s AI-driven risk assessment tools.