This is good news for French fintech. Younited, a consumer credit specialist, announces its entry into Euronext Paris. A maneuver considered “ a key milestone in the company’s history », According to Charles Egly, its co-founder and general director.
IPO via a SPAC
Launched in 2012, Younited first specialized in instant credit, before a decisive strategic shift towards open banking in 2018. This system offers financial institutions the possibility of sharing customer data with authorized third parties, which allowed several companies to offer credit via the Younited platform.
Last October, the company announced its merger with the SPAC (Special Purpose Acquisition Company) Iris Financial. This type of company, already listed, has no real activity. Its goal is to merge with a firm to allow it to avoid the traditional listing process, as this can be complex. The operation allowed Younited, now Younited Financial, to enter Euronext Amsterdam. She is now doing the same in Paris. Its historic shareholders hold 60% of the new entity, compared to 40% for Iris Financial.
“ Thanks to the merger with Iris Financial and the new listing, we are very well positioned to continue innovation in the consumer loan market and capture market share. Younited has strong foundations, a distinct technological lead, a clear strategy and an experienced management team to drive growth and attractive shareholder returns in the future », enthuses Charles Egly.
6 billion euros in loans financed
The operation allowed Younited to raise 152 million euros, bringing its market capitalization to 622 million euros. The company unfortunately lost the unicorn status it had acquired in 2022 after a new fundraising of 60 million euros. The cause, in particular, is the rise in rates in Europe, while inflation has hit the sector head-on. In 2023, its credit production was 1.1 billion euros, a decrease of 31% compared to the previous year.
The fintech has still financed 6 billion euros in loans since its creation, and has 1.2 million customers. It employs around 520 people in four European countries: France, Italy, Spain and Portugal. This new maneuver allows him to move from a model where it used institutional investors to lend money, to a model where it will lend through its own balance sheet. According to the founders, this should reduce the cost of refinancing by two or three times.
“ Combining Younited with our established network of long-term capital providers and experienced financial investment professionals will help generate attractive returns for shareholders in the future. Listing on Euronext Paris is a major milestone for Younited, with the group now benefiting from a solid balance sheet and increased visibility to capture market share “, comments Elizabeth Critchley, CEO of Iris Financial.
- Fintech Younited enters Euronext Paris through a SPAC.
- This follows its merger last October with Iris Financial.
- Younited raised 152 million euros during the operation.
