The company founded in September last year said that is already has interest from nearly 100 lenders across Europe with a total demand of more than €1bn.
Stockholm-based debt financing platform Scayl is making €100m immediately available to fintech lenders across Europe to address a significant funding gap in the sector.
In an announcement today (3 April), Scayl said that it raised the funding after emerging from stealth mode backed by a network of banks.
Known as a ‘fintech for fintech lenders’, the platform will offer fintechs building credit products access to transparent funding structures as well as more flexibility and speed compared to banks or credit funds.
According to Medjit Yalmaz, CEO and co-founder of Scayl, there is a significant funding gap in Europe that will be capitalised by fintechs, not banks. “By supporting these fintechs and helping them fill this gap we expect to facilitate the growth of many unicorns for years to come, and we’re extremely excited by that,” Yalmaz said.
Yalmaz, a former venture capitalist, founded Scayl in September 2023 along with COO Patrik Blomdahl and CTO Jatin Goyal, inspired by the challenges faced by fintech lenders when trying to raise debt.
“When I worked as a debt investor, I would send out term sheets to fintech lenders requiring warrants corresponding to upwards of 10pc of businesses. I saw first-hand the endless hidden fees and six to 12-month timelines it took to negotiate and structure debt before founders got the capital they needed. The process wasn’t very friendly, but it continues to be market standard,” he said.
The company said that already has interest from nearly 100 lenders across Europe with a total demand of more than €1bn. It has also secured a partnership with an undisclosed northern European bank to start providing funding for fintech lenders through its platform.
“With Scayl, we listened to what Fintech lenders said they really needed and built a platform that allows us to provide them with debt capital more efficiently, at lower costs, and on founder friendly terms – we think of ourselves as a fintech for fintech lenders,” Yalmaz added.
“We exist to allow them to focus on what they do best – providing European SMEs and consumers with innovative financial products.”
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