French fintech company, Finfrog, has announced a €5 million funding round with RAISE Ventures. The company, which previously raised €3 million in 2019, is expanding its offering and using artificial intelligence (AI) to model risk. Through machine learning algorithms that interpret revenues, expenses and credit scores, Finfrog is able to lend to a range of people, including freelancers, students, temporary workers, and permanent employees. Its responsible approach to credit has won the company several major B2B partnerships, including deals with Uber Eats, Frichti, Brigad, and other major platforms.
Finfrog has been investing in R&D for several years to develop proprietary AI algorithms to model risk. The company is able to use data analytics to score customers based on their income and expenses, as well as other factors, to determine their creditworthiness. It has also partnered with several major companies to offer its lending services to their employees and independent contractors.
RAISE Ventures, a venture capital firm that focuses on early-stage investments, led Finfrog's latest funding round. The firm's investment in Finfrog is part of its broader strategy to support innovative startups that are using technology to disrupt traditional industries.
Finfrog's mission is to provide affordable and accessible credit to individuals who may not have access to traditional banking services. By using AI and machine learning, the company is able to offer loans to a wider range of customers, which is helping to address the growing demand for alternative lending solutions.