The deal is a small signal of a maturing Fintech scene in France. Both services allow small and medium businesses to use crowdfunding to borrow money for projects.
In a press release, Lendix executives said the two companies offer complimentary services, as Finsquare focuses on more short-term loans.
“[Finsquare] fits perfectly with our current offering, which is focused on longer term loans and financial leases,” said Oliver Goy, Lendix founder and chief executive, in a statement. “It’s a logical expansion of our range of financing solutions for SMEs.”
Lendix did not disclose the amount it paid for Finsquare. Last June, Finsquare raised €1.5 million from VC firms Aviva France, Edenred Capital Partners, and Virtual Network.
In an interview with Rude Baguette earlier this week, Goy said Lendix has seen rapid growth over the past year as more businesses look for alternative means of financing. You can also catch Goy on stage next week at Rude Baguette’s Spend conference that’s taking a closer look at the future of money and finance.