Feedback: Younited Credit raises funds

The french finTech Younited, Credit-as-a-Service specialist, has just announced a new round of financing. This is an opportunity to take stock of its results and its deployment, and to highlight its good economic health.

FACTS

• Younited completed a $170 million fundraising earlier this month.

• This new round of financing brings together two prestigious names: Goldman Sachs Asset Management and Bridgepoint. They join its historical shareholders: Eurazeo, Bpifrance (via its Large Venture fund) and AG2R La Mondiale.

• In total, this new round of financing brings the investments received by the FinTech to 400 million dollars.

• This announcement is also the opportunity chosen by the FinTech to make a progress report on its strategy and its deployment:
  • Younited says it has granted more than €2.6 billion since its launch in 2012. It now covers 5 European countries and a market of 265 million consumers.
  • Its BtoB offering, Younited Business Solutions, represents 30% of Younited's net banking income.
  • The fintech currently has 440 employees based in Paris, Rome, Barcelona and Munich.

CHALLENGES

• Strengthening its backers: Bpifrance is one of Younited's historical supporters. This commitment is not only financial, as the public investment bank has also developed with Younited a digital platform dedicated to the "Rebound Loan" scheme set up last April, following the first containment. A trust granted by an institutional player that strengthens Younited.

• Diversifying its offer: Younited is now committed to the wider deployment of its BtoB offers (such as Younited Pay, a new payment method for European e-merchants and physical retailers that will offer fractional payments from 3 to 48 months) and BtoC. The FinTech specifies that it will offer true compliance with a KYC and a contract signature, to meet legal requirements that could be reinforced in this area.

• Making its mark in Europe: Younited is already present in France, but also in Italy, Spain, Portugal and Germany, where the FinTech generates 40% of its revenues. It plans to hire an additional 200 people over the next 18 months. The company wants to double in the European markets.

MARKET PERSPECTIVE

• Younited Credit has shown significant momentum since its announcement to accelerate into BtoB in December 2019. The FinTech had succeeded in its gamble by imposing its Younited Business Solutions offering on Fortuneo, Lydia, Microsoft, L'Olivier Assurance, LDLC and even Orange Bank.

• BNPL is having considerable success, with outstandings expected to reach €10 billion by the end of 2021. It is thus cannibalizing the market and the traditional credit players, but it also raises the level of risk, particularly in a context of crisis. Some players, such as Younited, are campaigning for stricter regulations to better control these new offers.