Liberis raises $112m in debt round led by HSBC Innovation Banking

Fintech Liberis has raised $112m (£89m) in debt financing from HSBC Innovation Banking and BCI Capital, to use across its European and North American operations.

The embedded business finance solutions provider will use the capital to power its expansion into new markets, including Canada, Poland and Germany, next year.

Liberis, which has funded nearly $1.5bn in over 60,000 transactions through its global partners, including neobanks, was founded in 2007.

The debt financing takes the total funding Liberis has secured so far to more than $700m. Its equity investors include Barclays, Blenheim Chalcot and FTV Capital.

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“The joint debt facility from HSBC Innovation Banking and BCI Capital allows Liberis to serve thousands more business owners with fair and frictionless funding through our partners using our embedded finance platform,” commented Rob Straathof, chief executive of Liberis.

“It enables us to extend our reach into new markets like Canada, Poland, and Germany. We are thrilled to be supported by our capital partners as we continue to serve businesses with innovative and flexible funding solutions.”

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Liberis aims to provide small and medium sized businesses with access to financing. It aims to help plug a $5.2tn gap in financing in this segment, according to figures from the International Finance Corporation.

Nima Montazeri, CPO at Liberis, added: “The challenge faced by small businesses when seeking finance is indicative of the inflexible lending criteria maintained by traditional banks, which often unfairly categorise SMEs as high-risk borrowers. This issue stems from outdated lending practices and technologies which fail to adequately cater to the needs of smaller, asset-light businesses.”

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