Teylor Secures €275M Funding from Barclays, M&G Investments, Becoming One of the Best-Funded SME Credit Platforms in Central Europe

  • Fundraising News
  • 02.06.2023 11:05 am

Teylor, Barclays, M&G Investments and other investors have closed one of the largest fundraisings in the European private debt market for alternative lenders and the fintech industry so far in 2023. The €275m in fresh capital will enable Teylor to continue its rapid growth and allow the company to meet the financing needs of SMEs with a variety of debt products via the Teylor credit platform. This landmark DACH fundraising transaction was closed despite the turbulent macroeconomic backdrop and uncertainty in capital markets which demonstrates the strength of the Teylor platform, team and technology.

Huy Nguyen, Head of Private Debt at Teylor, says: „Having Barclays and M&G Investments as strategic partners for Teylor brings our platform to the next level and proves Teylor’s leading market position. The capital enables us to provide flexible and long-term financing solutions to strong SMEs in a time where capital has become less accessible.”

Teylor’s mission is to provide European SMEs better access to credit. According to the latest EY Global SME survey, SME decision-makers consider fast access to credit as one of their biggest needs, making fast and flexible alternative lending a key opportunity for competitive differentiation. Teylor’s position as a leading credit platform in the DACH region provides Barclays the opportunity to have an impact on SMEs outside of its UK home market.

Gordon Beck, Head of European Corporate & Sustainable Securitisation at Barclays, says, „SMEs require a reliable platform to satisfy financing needs with limited bureaucratic hurdles and efficient deal execution. We are pleased to expand our financing footprint within this sector in Continental Europe and support Teylor as one of the companies driving the transformation of SME lending through digitisation.”

M&G Investments is an active global investor in structured credit as well as private debt and this transaction has increased its footprint in SME direct lending in Europe. SME’s demand for non-bank financing is increasing as alternative lenders and private debt funds often provide greater flexibility.

Alexis Dussault, Portfolio Manager at M&G Investments, says, „We believe that Teylor is in a good position to help fill the funding gap that SMEs are facing in Continental Europe, thanks to their knowledge of local markets, advanced technology and a strong leadership. M&G are happy to support Teylor in their ambitious development.”

Since inception in 2018, Teylor has built a unique platform providing fast and flexible financing to SME borrowers in Germany. Teylor’s self-built technology platform is used directly to finance SMEs in Germany. Additionally, Teylor licenses the technology platform to more than a dozen financial institutions throughout Europe. Teylor’s proprietary platform for deal origination, credit risk assessment and private debt has allowed it to process more than €3bn of SME debt in the past three years.

Patrick Stäuble, CEO and Founder at Teylor, says, „SMEs, financial institutions and investors need a single platform that simplifies all credit processes. We have seen this digital revolution happen in B2C which was driven by today's fintech giants. The next fintech revolution will be in B2B and will be driven by companies like Teylor. With the support of our investors, we will change how credit is provided in modern economies.”

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