Stockholm-based Scayl, a debt financing platform, announced its emergence from stealth on Wednesday. It has raised €100M to provide lenders with access to flexible and transparent funding structures.
The startup was founded in 2023 by Medjit Yalmaz (CEO), Patrik Blomdahl (COO), and Jatin Goyal (CTO), along with a team of ex-VC (Swedbank), ex-Private Credit (Credo Capital Partners), ex-Fintech lender (Anyfin), ex-hedge fund (IPM), and ex-banking (SEB) professionals.
The founders established Scayl after witnessing the challenges Fintech lenders faced when raising debt.
“When I worked as a debt investor, I would send out term sheets to Fintech lenders requiring warrants corresponding to upwards of 10 per cent of businesses. I saw first-hand the endless hidden fees and 6-12 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,” says Medjit.
What does Scayl do?
Dubbed a “Fintech for Fintech Lenders,” the Swedish company provides Fintechs that are creating credit products with transparent funding structures.
This enables them to fund their loan books with more flexibility and ten times faster than if they were negotiating directly with banks and credit funds.
“With Scayl, we listened to what Fintech lenders said they 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. We exist to allow them to focus on what they do best – providing European SMEs and consumers with innovative financial products,” continues Medjit.
By creating a funding product and technology platform built exclusively for Fintech lenders, Scayl is hyper-focused on addressing the lack of flexible and cost-efficient debt financing currently available to these companies.
Scayl has come out of stealth during a challenging time for Fintech lenders in Europe due to a difficult macroeconomic environment, higher base rates, and rising risk of defaults.
“There is a 400 billion euro funding gap in Europe alone, and it will be Fintechs, not banks, taking advantage of the opportunity. 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,” comments Medjit.
Scayl allows fintech lenders to connect with banks and other credit institutions easily. It receives funding from these institutions while also feeding and retrieving all necessary data to assess borrowers and facilitate the funding of loans.
The company has developed technology that enables real-time monitoring of 10,000x more data points and uses AI-enabled risk modelling.
This technology helps Scayl to link a growing number of Fintech lenders with financing partners interested in SME and consumer credit exposure.
Based on the team’s existing network of banks and Fintechs, the company already has interest from nearly 100 lenders across Europe with a total demand of more than €1B.
The company has also secured a partnership with a northern European bank to start providing funding for Fintech lenders. Scayl will be making these funds available to lenders through its platform.
Read the orginal article: https://siliconcanals.com/news/startups/scayl-exits-stealth-mode-with-100m/
