France-based fintech Defacto has announced a raise of EUR 167 million with Citi and Viola Credit in order to improve its development process. Following this announcement, Citi is set to be the senior lender of the fund, while Viola Credit will continue to offer its expertise and be a mezzanine lender of the raise.

The money will give Defacto the possibility to accelerate and improve its overall development procedure, as its yearly funding capacity is currently up to EUR 1 billion, according to the press release. Defacto will also focus on enhancing its suite of products and services, aiming to meet to needs, preferences, and demands of its customers by offering them an efficient and secure experience. The solutions will also offer flexible and instant financing to small and medium-sized enterprises (SMEs) in Europe.

The company delivers its loans to SMEs and partners by using an embedded approach. Defacto’s API-first tool gives third parties such as B2B marketplaces, digital platforms, and other fintechs the possibility to embed the firm’s financing services directly in their own suite of solutions. In addition, SMEs can benefit from a safe and instant lending experience, while platforms will be enabled to increase their differentiation and user satisfaction.

The EUR 167 million will have an initial transfer of EUR 67 million, which will be increased as subject to the lender’s consent in the following months. Citi Bank’s recent product launches In July 2023, Citi announced the launch of its new platform, CitiDirect Commercial Banking, which was designed to address the needs and demands of its clients and the overall industry. The launch represented a step into Citi’s strategy of investment, which focused on meeting the growing demands of the market and on delivering a single-entry point digital platform.

The platform incorporated Citi’s suite of services into a single place, offering users a holistic and consolidated view of their Citi banking balance and relationships across multiple areas, including cash, loans, trade, onboarding, FX, and servicing. Earlier in the same month, the bank announced its initiative to launch the Citi/AAdvantage World Elite Mastercard, in collaboration with American Airlines. The card was set to offer members new opportunities to earn valuable credits for multiple card rentals, food delivery, ride shares, as well as travel insurance, for situations when the travel experience did not go as planned.

Furthermore, customers also had the possibility to earn more AAdvantage miles and Loyalty Points, priority access, and an improved lounge experience with new food offerings, expanded complimentary drink menus, and additional locations, which were made available in the following months. .