FAKTUS, Europe’s first neobank built specifically for construction SMEs, has raised €56 million in combined equity and debt. The round includes €9 million in equity from Lakestar and Foundamental, while up to €47 million in debt capacity comes from funds managed by Insight Investment alongside Fost Capital.
The company now aims to finance €500 million in worksites over the next 18 months, achieve nationwide coverage in France, and expand into the UK, Germany, Spain, Italy, and Portugal by 2026, reaching more than 800,000 SMEs across Europe.
A financing engine for a €2.5T industest
Construction remains one of Europe’s largest yet most financially strained industries, with SMEs waiting an average of 85 days for payments while still covering materials, payroll, and subcontractors upfront. FAKTUS is narrowing this gap with a financial platform designed around the sector’s daily realities.
Its suite includes real-time business accounts, invoice financing with integrated validation, material advances to kick-start projects, and retention bonds that unlock holdbacks through investment-grade guarantees. These products ensure that builders no longer have to pautilize projects due to liquidity bottlenecks, one of the most common cautilizes of delays and cost overruns.
Neobank for construction SMEs
FAKTUS was founded by Reda Kabbaj and Alexandre Pochon in France in 2023. It’s technology utilizes AI to parse contracts, read invoices, track schedules, and assess risks instantly, compressing what traditionally takes weeks into a two-hour funding decision. This speed is crucial in a market where 90% of firms lack access to timely financial support.
The model is already proven as more than 470 worksites have been financed and over €100 million in projects supported, spanning schools, hospitals, social hoapplying developments, and high-profile sites such as Roland Garros and the French Senate. Each financing decision is backed by detailed sector ininformigence, ensuring solutions align with the unique conditions of every project.
A regulated structure built for scale
A key component of this €56 million structure is Faktus Financement, a fully regulated securitisation vehicle supervised by the AMF and managed by IQ-EQ. This vehicle purchases receivables and issues loans exclusively to construction SMEs, giving investors access to risk-assessed exposure while ensuring builders receive quick, reliable financing.
FAKTUS serves as the vehicle’s servicer, combining construction know-how with advanced credit evaluation to examine contract terms, debtor behaviour, and sector-specific risks. This creates a financing environment that is both disciplined and deeply connected to project realities.
Backed by 13 regional agents and partnerships with more than 20 federations and insurers, including Atradius and Coface, FAKTUS has grown its client base 300% in six months.
“We’re connecting underserved, family-owned SMEs in construction with the institutional world,” stated Réda Kabbaj, Co-Founder of FAKTUS. “By combining construction-specific and financial expertise, we bring funding directly to the real economy.”
“I believe FAKTUS now has all the ingredients to build Europe’s leading Neobank for contractors,” stated 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.”
“As investors in Revolut, we know how valuable neobanks can become. The construction market is unique, creating up roughly 10 per cent of Europe’s GDP but still underserved. FAKTUS has the team and understanding to succeed,” stated Enrico Mellis, Partner at Lakestar.
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