France-based FinFrog has reportedly raised €5m in its latest funding round, which will be put towards research and development efforts.
RAISE Ventures, a venture capital firm dedicated to French and European startups, led the capital injection, according to a report from EU-startups.
This equity has been earmarked for the support of R&D initiatives, with a focus on improving its AI algorithms to model risk, the article claims. Furthermore, the capital will be used to improve its budget support by notifying customers when they are nearing their overdraft.
Finally, the company will put money towards improving the speed of its offering.
FinFrog supplies consumers with short-term micro-loans, which are designed to replace overdrafts by offering better terms. Loans can be taken out for between €100 and €600 and paid back in either three or four months.
The investment follows a €3m round raised by FinFrog in 2019.
France-based InsurTech platform Alan closed a €50m Series C round in April to support the opening of two new European offices.
The FinTech sector in France has seen strong growth between 2015 and 2019, FinTech Global data shows. In 2015, there was around $178.7m invested across 32 FinTech deals, but last year, there was $848.2m deployed through 53 transactions.
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