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

FAKTUS, Europe’s first neobank dedicated to construction SMEs, has announced €56 million in combined equity and debt financing to scale rapidly across Europe, bridging the gap between institutional finance and SMEs in the €2.5 trillion construction market where 90% of builders remain underserved. Lakestar and Foundamental provided €9 million in equity, with separate debt capacity of up to €47 million provided by certain funds under the management of Insight Investment alongside Fost Capital.

Construction SMEs face payment delays averaging 85 days while managing upfront costs for materials and payroll. FAKTUS addresses this with a streamlined, AI-powered platform offering business accounts with real-time project cashflow tracking; invoice financing with integrated validation for immediate liquidity on receivables; material advances for upfront funding to start projects without delays; and retention bonds to release project holdbacks through investment-grade guarantees.

Using AI, the platform reads invoices, parses contracts, tracks schedules, identifies risks, and compresses weeks-long underwriting into two-hour financing decisions, enabling SMEs to access liquidity faster than traditional methods. Already, 470+ worksites have been financed and over €100 million of projects supported, including schools, hospitals, social housing, and landmark projects like Roland Garros and the French Senate.

The €56 million funding comprises €9 million in equity from seed rounds led by Lakestar and Foundamental (2023-2024) powering platform development, team growth, and early market traction, plus up to €47 million in debt via Faktus Financement, a fully regulated securitisation vehicle dedicated to construction SME financing. The vehicle, supervised by the AMF and managed by IQ-EQ, purchases receivables and provides loans exclusively to construction SMEs, establishing one of Europe’s fastest-regulated Fonds Commun de Titrisation just 18 months after issuing its first loan.

“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.” FAKTUS has grown its client base 300% in six months, supported by 13 regional agents and partnerships with 20+ federations and insurers including Atradius and Coface.

“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.”

Enrico Mellis, Partner at Lakestar, added: “As investors in Revolut, we know how valuable neobanks can become. The construction market is unique, making up roughly 10% of Europe’s GDP but still underserved. FAKTUS has the team and understanding to succeed.” The company plans to finance €500 million of worksites in the next 18 months, achieve full coverage in France, and expand to the UK, Germany, Spain, Italy, and Portugal in 2026, ultimately serving more than 800,000 SMEs across Europe.

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