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French Fintech Karmen Acquires Rival Silvr in Consolidation Play

PARIS - In a move that signals consolidation in the French short-term financing market, fintech firm Karmen has acquired the assets of its competitor Silvr, the Nanterre commercial court announced on Monday.

The deal comes as the sector faces headwinds from rising interest rates and a contracting alternative financing market. Silvr, a pioneer in non-dilutive funding for digital companies, particularly in retail and SaaS, had expanded rapidly across Europe but ultimately succumbed to the challenging environment.

Founded in 2020, Silvr had grown to serve around 100 clients, offering financing of 6-9% of advanced amounts tied to business cash flows. The company had expanded early into Germany, acquiring Uplift1 in 2023 and generating nearly a third of its over €200 million in 2024 funding volume from the German market.

However, Silvr's fortunes turned as macroeconomic conditions deteriorated. "The rise in rates, the contraction of the alternative financing market, and increased risk costs have weakened the company," the court noted in its decision to place Silvr under judicial administration in June.

Despite raising €21 million across five funding rounds from investors including XAnge, Otium, Bpifrance, Eurazeo and ISAI, as well as angel backers like Alexandre Prot and Steve Anavi, Silvr was unable to withstand the market pressures.

Karmen, led by co-founder and CEO Gabriel Thierry, will now take over Silvr's assets in what industry observers see as the first step in the consolidation of France's short-term financing space. The deal underscores the challenges facing alternative lenders, who must navigate a more challenging credit environment while facing competition from both banks and newer fintech disruptors.

Financial details of the transaction were not disclosed, but the acquisition is expected to bolster Karmen's position in the market as it seeks to capitalize on the shakeout in the sector. Analysts note that Karmen and other survivors will likely benefit from economies of scale and market share gains as weaker players succumb to the pressures.

The Silvr deal represents a critical juncture for France's short-term financing landscape, which is being reshaped by macroeconomic forces and the need for alternative lenders to adapt their business models. Industry participants will be closely watching to see if this marks the start of a broader consolidation phase in the market.