MUNDUS Bridge Finance has signed an investment agreement with DEBIFO to provide up to EUR 10 million of debt financing to support DEBIFO portfolio growth over the next 5 years.
DEBIFO offers invoice financing services to small- and medium-sized businesses in Lithuania. Unlike banks, DEBIFO does not require long-term contracts or commitments to finance all issued invoices. Moreover, financing is accessible to small and young enterprises as long as they have large and reliable clients. Additionally, decisions are made and financing is provided within several days.
“Since beginning cooperation with Mintos, the DEBIFO portfolio has almost tripled in value, our number of clients has doubled and our strict underwriting and credit risk models help us to keep delinquency rates in control. We have extended our invoice financing services to include export financing and prepared for expansion into other markets,“ says Justas Šaltinis, CEO of DEBIFO.
”Our service opens up a previously virtually non-existent financing alternative to small- and medium-sized businesses. A fairly large number of small- and medium-sized companies have tried our invoice financing services, allowing us to reach a cumulative volume of financed invoices of over EUR 7 million. The investment agreement with MUNDUS will let us scale our operations and portfolio to the next level.“
MUNDUS Bridge Finance Fund, which specializes in lending to non-banking financing providers, continues to expand its investment portfolio. “We believe the business lending segment of alternative finance to be highly promising and attractive. Therefore, at the beginning of October, we started cooperating with one of the most innovative and rapidly growing players in this segment – DEBIFO. We believe that the investment will be a valuable addition to our existing portfolio and will allow us to offer our investors competitive returns on their investments vis-à-vis those of traditional asset classes,” says MUNDUS fund manager Marius Barys.
Since DEBIFO launched in May 2015, it has won the acclaim of both the Lithuanian and the international business community. Business magazine Forbes has named the company as one of the most intriguing FinTech start-ups in Europe. DEBIFO also earned the Best Financial Service Award from the Lithuanian Business Confederation’s annual “Service of the Year” honors. Since the beginning of this year, DEBIFO has been cooperating with the largest Baltic peer-to-peer lending platform, Mintos.
MUNDUS Bridge Finance is the leading alternative finance fund in the Baltics. The fund, which is supervised by the Bank of Lithuania, invests exclusively in companies operating in the alternative finance sector, with the objective to generate stable growth of capital via private debt investments.