And an additional 60 million euros raised at Younited (formerly Younited Credit). The credit fintech, which works both as a white label with banks and in direct contact with individuals, is completing a new round of financing. The operation is much smaller than that of 170 million euros announced in July 2021. However, it comes with big news at stake. The startup has exceeded one billion euros in valuation, enough to grant it unicorn status.
A unicorn, the 28th in France, is therefore part of the great fintech family. Younited started from the beginning in credit and continues to make it its core business, even if other even more popular products have been added recently, such as payment facilitation (split payment). Between the two capital increases, Younited’s valuation increased by 45%. So why continue to fundraise? Quite simply because Younited is not yet profitable. In its release, the company claims it will break even next year.
It took 13 years before profitability was in sight. A long tunnel recognized by Charles Egly, the co-founder of Younited. “We never had a stratospheric valuation, compared to other startups”, he declared. Reaching a representative level then required opening up to many markets (there are 5 in Europe). Because the loan between individuals does not make it possible to achieve large margins. Fintech only acts as an intermediary while the money lent comes from individual investors.
In figures, its total revenues increased by 54% to 190 million dollars, driven by a year 2021 and a first half of 2022 of great vintage. At a time when inflation is reaching peaks, and when low rates are no longer relevant in credit, fintech is taking advantage of this. But last year alone, a share of 125 million euros was brought in by its white label activity. Younited has signed contracts with Orange Bank, N26, Fortuneo, Lydia, Microsoft, Free. See for yourself the importance of its new activity as a B2B service provider.
A mixed record
However, all this good news must be put into perspective with Younited’s announcements last February. At that time, the startup chose to unveil its accounts with great fanfare. She planned to become a unicorn very quickly, and position herself at the top of the leaderboard. New products were also to arrive, such as a credit solution for freelancers. The 2022 report, which we will not have for several months, will have to exceed 300 million euros in volume to meet the objectives.
