Fintech Pleo Raises €40m in Debt Financing From HSBC

Spent management platform Pleo has raised €40m (US$42m) in debt financing from HSBC Innovation Banking, as it bids to unlock new customers in new markets

Pleo, one of Europe’s largest spend management platforms, has raised €40m (US$42m) in debt financial from HSBC Innovation Banking – HSBC Group’s specialist financial partner arm for the innovation economy. 

The deal will enable Pleo to offer higher credit limits to more customers and increase flexibility in the financial options available to them. Pleo hopes the outcome of its latest capital injection will help it unlock new customers in more markets and currencies than ever before. 

Pleo: Expanding into more European markets 

Indeed, Pleo’s overdraft facilities are already in use across Sweden, Germany and the UK, as well as Pleo’s native Denmark. 

Now, with its latest funding in the bag, Pleo hopes to drive further growth across Europe, with a market launch in the Netherlands on the cards – where Pleo will roll out its overdraft facilities in the coming weeks. 

The need for services such as those provided by Pleo has been on the rise amid a protracted cost-of-living crisis, with more SMEs needing overdraft capabilities to stay afloat and complete payments. 

Over the last six months alone, the average company has seen 6% of their total transactions fail due to insufficient funds. 

Now that Pleo has partnered with HSBC Innovation Banking, it will be able to alleviate this pain point for clients and boost its credibility in the markets it operates – fuelling additional growth to already impressive growth figures.

Amit Kahana, VP of Credit and Treasury at Pleo, says: “We are delighted to announce our partnership with HSBC Innovation Banking. Starting at €40m, the debt financing available to us can extend based on future requirements - which will expand our existing reach even further into more countries, enable us to increase limits and offer more currencies. 

“Beyond this milestone partnership and imminent launch in the Netherlands, we are expecting to see exciting developments over the coming 12 months as we prepare to launch in even more markets.”

Pleo’s latest announcement comes after it announced Søren Westh Lonning as its new CFO in December 2023. 

Conor Sheehy, Managing Director, Head of Warehouse Finance, HSBC Innovation Banking UK adds: ”This transaction demonstrates HSBC Innovation Banking’s capabilities to provide multi-currency, multi-jurisdictional facilities to support leading credit originators launching new and innovative products. 

“We are proud to be providing Pleo with this facility and look forward to supporting them to continue on their global growth trajectory.”

HSBC Innovation Banking’s latest cash injection into Pleo follows similar debt funding for Liberis in December 2023, to fuel Liberis’ growth across Europe and North America.

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