Turkish fintech Param Group raises €38 million for BNPL offering, expansion
Turkey’s Param Group has raised €38 million from a bunch of marquee global and local investors for two of its companies, Turk Elektronik Para A.S., or Param, and Turk Finansman A.S., or Kredim, regulatory disclosures show.
Param Group had announced the fundraise in June this year but didn’t disclose the amount at the time, saying only that it was valued at $200 million.
The two Param Group companies have received equity infusions from a consortium of investors led by the European Bank for Reconstruction and Development (EBRD).
The EBRD was joined by CCL Investments SaRL (CEECAT Capital), a private equity fund focused on the emerging European economies, as well as by Alpha Associates and Revo Capital.
Of the total amount, Param will get €27.7 million while Kredim will get €10.9 million. The EBRD will pitch in with a total of €13.7 million. It will provide €9.8 million to Param and €3.9 million to Kredim, according to a disclosure.
Param will use the new equity investment to support future growth, for tech development, for marketing and HR functions. Kredim will use the new infusion to launch a buy-now-pay-later (BNPL) service.
Outlining the rationale for its investment into the Param Group, the EBRD said in a disclosure that the investment into the Turkish group’s expansion plans will support a number of operational changes and the launch of new products.
The EBRD also noted that Param Group aims to provide digital and open banking services in the near future, leading to competitiveness improvements.
Param is a leading independent non-bank payment service provider with a 22% market share and e-money company in Turkey, serving large corporate merchants and facilitating online transactions.
Param started in 2013 as a prepaid card provider for lawyers and professionals. At the onset of Covid-19 crisis, the company invested in technology infrastructure and began focusing on large corporate merchants.