French lender Younited Credit raises $ 170 million to double embedded financing

The news: French fintech, which offers credit products to European consumers, has secured a $ 170 million round led by Goldman Sachs, per TechCrunch. It will use the funding to go deeper into European markets and increase its workforce.

E-commerce retail sales to reach $ 99.9 billion in France by 2024

E-commerce retail sales in France will reach $ 81.03 billion this year.

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See how it works: Younited Credit offers a range of personal loans from € 1,000 ($ 1,140) to € 50,000 ($ 57,013), including auto financing and work loans that can be used to finance maintenance work.

Alt lender uses an AI-based data-driven approach to assessing consumers’ creditworthiness. It also relies on PSD2 and open banking APIs to make the most of available data and can power past learning risk models with data from previous consumers for accurate assessment of individual situations. This saves consumers from having to send documents to providers and allows Younited Credit to automate application processes as much as possible.

Younited Credit has lent more than € 2.4 billion ($ 2.74 billion) and operates in France, Spain, Portugal and Germany – although its domestic market still accounts for 60% of its revenue .

What’s next? Younited Credit will be looking for more opportunities to integrate its products into e-commerce platforms, a market that is heating up in France.

Collaborated with N26 in 2017 to help

new bank
launching credit options in its application. He added similar collaborations last year, collaborating with fintech Lydia on July 2020 and Orange Bank last month. B2B partnerships now account for 30% of its net banking revenue.

In the future, fintech wants to focus on embedded financing with a credit product called Younited Pay, which can be embedded in e-commerce platforms and offers payment terms of three to 48 months. E-commerce retail sales in France are expected to increase from $ 74.07 billion in 2020 to $ 106.20 billion in 2025, per an Insider Intelligence prediction.

Going to market now, Pay Later (BNPL) puts Younited Credit in competition with Australia-based Afterpay and Sweden-based Klarna, which launched in France in March and June, respectively. Plus, startups like Alma recently earned $ 59.4 million, further highlighting how hot the BNPL market is in France.

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