Finfrog raises funds to support its microcredit offer

Finfrog, the micro-lending FinTech, has just announced a major fundraising, six years after it entered the French micro-credit market. Its alternative to overdrafts is attracting more and more borrowers, but also investors, and is continuing to grow.

FACTS

• Finfrog has just announced that it has raised 30 million euros in two parts, 10 million in capital and 20 million in debt.

• Finfrog's microcredit offers are available for amounts between 100 and 600 euros and are repayable over a maximum of 10 months.

• However, after raising funds, Finfrog plans to slightly expand its offer by proposing loans of up to 1,000 euros.

• Finfrog mainly finances unforeseen events (car or appliance breakdowns), and small everyday projects such as home renovations, for example.

CHALLENGES

• Expanding its basic offer: Finfrog made a strategic choice linked to current events last August, by entering the fractional payment market. It has also developed an instant transfer functionality at no extra cost to deliver its funds in less than 5 minutes in 80% of cases. The FinTech intends to use its new funds to develop its core business and to imagine new offers, without specifying the outlines for the moment.

• Recruiting: To do this, Finfrog is counting on expanding its teams. It plans to grow from 25 to 40 employees by the end of the year. This will also help it to gain new shares in the micro-credit market.

MARKET PERSPECTIVE

• According to a Panorabanques study carried out at the end of 2021, 46% of French people declared having been overdrawn at least once during the course of last year. 19% would even have been confronted with this situation every month.

• And the situation could get even worse, as inflation poses new difficulties for the French in terms of purchasing power. Finfrog is therefore counting on its new funds to consolidate its position in a market that is proving to be buoyant. The FinTech also states that it will have granted nearly 40 million euros in micro-credits in 2021 in France.

• More broadly, FinFrog estimates that it has served nearly 300,000 customers earning less than €2,000 net per month (38 million French people would be concerned) since its launch. 3% of Finfrog borrowers fail to meet their payments, according to the FinTech. In this case, Finfrog's teams contact the borrower to change the date of their debit and facilitate their repayments.

• This operating system now allows Finfrog to break even and aim for a future break-even point.