Core Finance acted as exclusive financial advisor to Figopara, the next generation digital financing platform, on its $11M USD Series A financing round with a valuation of $50M USD led by L2G Ventures with participation from new investors Abdul Latif Jameel, Eczacibasi Momentum, Logo Yazilim, Maxis, Oyak Portfoy, Sabanci Ventures, ScaleX, TechOne, Turkey Development Fund, and existing investors IFC and Finberg also participated in the round.
Founded in 2019, Figopara is the leading next generation financing platform helping small and medium enterprises “SMEs” to access innovative financing alternatives. The Company’s digital platform complements traditional financing approach and helps SMEs’ economic growth through the access of credit solutions with its proprietary algorithm “FigoScore” which measures creditworthiness of under-served companies in a matter of minutes and provides real-time competitive rates.
Figopara’s innovative lending platform offers two types of financing solutions which are easy financing and buyer-guaranteed models. Easy financing solution enables businesses to integrate their e-invoice providers in seconds and to access several early payment options for their receivables prior to due dates. In buyer guaranteed solution, Figopara enables large corporates to provide the best options for their suppliers to have early payments on their receivables. Through this holistic approach, Figopara aims to become the core financing platform of SMEs so that they can manage their receivables, get early payments and access the new products in roadmap such as SME cards and micro lending options.
The company currently operates in Turkey, the largest market in MENA region (#15th globally by GDP) with a population of 85 million (#17th globally). 3.5 million SMEs in Turkey represents 99.8% of all businesses and accounts for 62% of the GDP in Turkey. The total loan market of Turkey currently stands at nearly $450B and the SMEs are significantly underserved by constituting only 25% of total outstanding loan – which is around $100B where Figopara focuses on to increase its market share.
Having excelled its operations both in Turkey and international markets, Figopara has achieved a remarkable growth and to reach $230M loans by the end of 2022 through its unique solutions.
Together with the funding, Figopara aims to invest into its product roadmap milestones well-crafted for SMEs, hiring key personnel to strengthen local & international presence and expanding to international markets in phases according to its international roll-out plan.
Koray Gultekin Bahar, CEO & Co-Founder of Figopara commented: “We are thrilled to welcome reputable investors to support our mission, especially in a market where liquidity is scarce as central banks tend to undertake tightening monetary policies. This truly shows how successful our platform has become. With our mission to expand our operations in international markets, we’re thrilled to receive a funding amount that exceeds our initial expectations from best-in class, value-added investors.”
Yagiz Sozmen, Managing Partner at Core Finance commented: "As Core Finance, we’re very excited to be a part of Figopara’s remarkable journey to success and bringing well-known investors to Figopara’s growth story. Having brought several prestigious strategic investors to the round, we firmly believe in the Company’s mission to become the leading financing platform not only in Turkey, but in new untapped markets as well.”
The transaction is further testament to Core Finance’s market leading position advising on fundraising rounds in fintech and software verticals and represents Core Finance's 6th transaction in the last 12 months and 3rd deal in the fintech sector.