FAKTUS secures €56M to launch Europe’s first neobank for construction SMEs

The company aims to grow quickly across Europe by connecting small and mid-sized builders with institutional finance. FAKTUS is targeting the €2.5 trillion construction market, where 90% of builders still lack proper financial support.

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SMEs in the construction industry often face payment delays averaging 85 days, while still needing to cover upfront costs like materials and payroll. FAKTUS solves this challenge through a streamlined, AI-powered financial platform that simplifies cashflow and financing for builders.

Key Features of the Platform:

• Business Accounts – Track project cashflow in real time for better visibility and accurate forecasting.
• Invoice Financing with Integrated Validation – Get instant liquidity on receivables, with simplified workflows that speed up approvals and collections to keep projects running smoothly.
• Material Advances – Receive upfront funding to start new projects without delays.
• Retention Bonds – Unlock project holdbacks through guarantees from an investment-grade guarantor, ensuring liquidity and project completion.

Using AI, the platform scans invoices, reads contracts, tracks schedules, detects risks, and reduces underwriting from weeks to just two hours, allowing SMEs to access funding faster than ever.

So far, FAKTUS has financed over 470 worksites and supported projects worth more than €100 million, including schools, hospitals, social housing, and major landmarks like Roland Garros and the French Senate.

The company’s €56 million funding combines both equity and asset-backed debt, giving it the financial strength to serve more SMEs while providing investors with secure, risk-assessed opportunities:

• €9 million in Equity from Lakestar and Foundamental (2023–2024) to support platform development, team growth, and market expansion.
• Up to €47 million in Debt from funds managed by Insight Investment and Fost Capital through Faktus Financement, a regulated securitisation vehicle dedicated to SME construction financing.

The financing vehicle, supervised by the AMF and managed by IQ-EQ, buys receivables and provides loans exclusively to construction SMEs. In just 18 months after its first loan, FAKTUS established one of Europe’s fastest-regulated Fonds Commun de Titrisation (FCT).

As the vehicle’s servicer, FAKTUS combines deep construction expertise with advanced credit analytics to assess contract terms, payment behaviour, and project risks — ensuring that every financing solution fits real-world needs while offering investors high-quality, risk-assessed exposure.

This powerful blend of equity and debt funding positions FAKTUS to scale across Europe, delivering fast, reliable, and tailored financing for construction SMEs. The company has already grown its client base by 300% in six months, supported by 13 regional agents and 20+ partnerships with federations and insurers such as Atradius and Coface.

"We're connecting underserved, family-owned SMEs in construction with the institutional world," said Réda Kabbaj, Co-Founder of FAKTUS. "

By combining construction-specific and financial expertise, we bring funding directly to the real economy."

"I believe FAKTUS now has all the ingredients to build Europe's leading Neobank for contractors," said Patric Hellermann, General Partner at Foundamental:

"When we led FAKTUS' pre-seed round in 2023, we were excited by the team. Just 9 months later, when Lakestar led the seed round, we had become excited by the product.

And now 2 years in, we have the data to be excited by FAKTUS' execution and customer feedback."

"As investors in Revolut, we know how valuable neobanks can become. The construction market is unique, making up roughly 10 per cent of Europe's GDP but still underserved. FAKTUS has the team and understanding to succeed," said Enrico Mellis, Partner at Lakestar.

The company aims to finance €500 million worth of worksites over the next 18 months, reach full coverage in France, and expand to the UK, Germany, Spain, Italy, and Portugal by 2026. Its goal is to support over 800,000 SMEs across Europe.

About Faktus

FAKTUS is a European neobank and fintech company that helps small and medium-sized construction businesses manage their cash flow. It offers invoice financing, material advances, business accounts with cards, and retention guarantee bonds through an AI-powered platform. The goal is to reduce payment delays and help construction SMEs grow faster and more smoothly.