London, April 2022 – Novicap, the European Fintech focused on providing end-to-end working capital solutions to SMEs, mid-market corporates, and public administrations, grew its volume of activity to over €300 million in 2021, or +194% compared to its pre-pandemic numbers. By serving a customer base underserved by banks and in need of digitization, the Fintech keeps delivering ever more impact to its customers and their stakeholders. Building on its success, Novicap also implemented a new leadership structure for its next phase of growth.
Novicap had a strong 2021, managing to grow its credit portfolio by 84% year-over-year, mostly driven by mid-market corporate demand for supply chain finance facilities (“Confirming”). SaaS revenues have grown 292% year-over-year, driven by the recent ramp-up of its Dynamic Discounting product, launched in 2020.
So far in 2022, Novicap is following its success from 2021. The Fintech has managed to achieve its best first quarter ever since inception, growing its revenue by 98% compared to the same period last year.
By providing financing and technology solutions to improve working capital management, Novicap helps customer segments that are underserved by banks and that need user-friendly tools to accelerate the digitization of their business. Since inception, Novicap has supported more than 2.000 businesses across Europe, delivering impact to their stakeholders and reducing the time businesses get paid by more than 65 days on average.
The Financial Times recognized Novicap’s upward trajectory by featuring it for the third year in a row in the FT1000, the annual list of Europe’s fastest-growing companies.
As the company enters into its next phase of growth, Novicap’s Co-Founders have decided to implement a new leadership structure following a long held strategy of combining internal talent promotion with key senior hires. In this light, Co-Founder & CEO Federico Travella steps sideways to become Executive Chairman, handing over the day-to-day to Lois Duhourcau, who promotes to CEO. Lois joined last year from The Carlyle Group as CFO and currently serves as Deputy CEO of the Fintech. In parallel, Co-Founder & COO Marc Antoni Macia transitions out to an external advisor role. Carlos Hernandez Diaz, previously Head of Operations and with Novicap since 2016, steps up to COO. Consistent with these changes, the board of directors is reshuffled with the appointments of Lois, as incoming CEO, and Romain Lavault, General Partner at Partech, the largest institutional shareholder of Novicap since 2015.
2022 will be the opportunity for Novicap to focus on three strategic pillars to meet its near-term growth ambitions.
First, Novicap will favor sustainable growth, aiming at €1bn of cumulative volumes in its Credit division by the end of 2022 – all the while maintaining profitable unit economics.
Second, the Fintech will increase investments in Dynamic Discounting, its SaaS offering that enables businesses to automate early payment programs to their supply chains, thereby deploying unused liquidity (cash or credit lines) to increase profitability margins.
Third, Novicap continues to expand its team, with 20 planned hires for the first half of 2022 in key areas such as Sales, Engineering and Product. Such growth in human capital is combined with its proprietary technology platform to keep yielding operational efficiencies versus traditional working capital solutions.
Federico Travella, Co-Founder & Executive Chairman, Novicap: “2021 was a transformational year for Novicap, as we continued to hire senior talent to match our growth ambitions. I started working with Lois last year and have been impressed by his drive and commitment to bring Novicap to the next level. I’m excited to work in tandem with Lois to keep building a category leader in working capital solutions.”
Lois Duhourcau, CEO, Novicap: “In spite of government-induced excess liquidity, 2021 was a successful year for our Credit business as our portfolio doubled. In parallel, we validated the ramp-up of our SaaS solution, Dynamic Discounting, with strategic client integrations. Looking ahead, the opportunity to serve customer segments underwhelmed by the banking sector and in need of user-friendly tools to digitize their business is large and exciting. I’m grateful to have the opportunity to lead Novicap in its next phase of growth and look forward to working with Federico and the team to achieve our long-term ambitions.”
Romain Lavault, General Partner, Partech: “Novicap is now in an ideal position to continue its incredible growth path and continue helping SMEs, mid-market corporates, and public administrations. With such a strong performance across the board, the new leadership structure bodes well for one of the most capital efficient success stories in the sector. I am delighted to join the Board of Directors with Lois Duhourcau, as incoming CEO, and Federico Travella as Executive Chairman and I can’t wait to see what’s next for this category leader in the making.”
Novicap is a European Fintech focused on providing end-to-end working capital solutions to SMEs, mid-market corporates, and public administrations. Through its proprietary technology platform, Novicap offers Credit and SaaS solutions that enable its customers to drive their business forward. Novicap actively supports thousands of businesses to help them deliver impact for their stakeholders.
You can read more about Novicap at novicap.com or contact us for media enquiries at [email protected].
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