Hero: A New All-in-One Banking Solution for Small Businesses in France

Hero, a Paris-based fintech startup, has secured €11.3 million in funding led by Valar Ventures, aiming to revolutionize banking for small businesses in France.

The funding will be used to further develop Hero's comprehensive banking platform, which is designed to replace traditional banking services.

Addressing the Challenges of Small Business Banking in France

Hero recognizes the complexities faced by small business owners in France, who often need to navigate a fragmented landscape of fintech products for managing finances, accepting payments, and obtaining credit.

Obtaining a bank account in France is relatively easy, but finding a comprehensive solution for all banking needs is more challenging.

Traditional banking services don't always cater to the specific needs of small businesses, leaving them reliant on a multitude of fintech products.

Hero aims to consolidate these services into a single, user-friendly platform.

Hero's Comprehensive Banking Platform: A One-Stop Shop for Small Businesses

Hero's platform offers a comprehensive suite of banking and payment solutions tailored for small businesses.

Multiple accounts and IBANs for managing funds effectively.

Payment cards for convenient transactions.

Integration with e-commerce platforms for seamless payment processing.

Competitive transaction fees starting at 0.4% + €0.15 per transaction.

Hero's Focus on Credit and Revenue-Based Financing

Hero's core revenue model revolves around its credit offering, providing a crucial solution for small businesses facing cash flow challenges.

Businesses can submit supplier invoices to Hero, who will pay them upfront and allow up to 90 days for repayment.

Hero also offers pre-payment on invoices submitted to clients, providing immediate liquidity and easing cash flow concerns.

Hero's proprietary risk scoring engine evaluates clients using public and private data to assess creditworthiness.

The company has established a debt fund with a financial partner to support its credit offerings.

Hero's Vision: A Future of Integrated Banking for Small Businesses

Hero's ambition is to become the leading provider of integrated banking solutions for small businesses in France. By offering a comprehensive suite of financial services, Hero aims to empower entrepreneurs with the tools and resources they need to thrive.

The company is committed to building its own core banking system, providing greater control and flexibility.

Hero's focus on building everything in-house presents both opportunities and challenges, including regulatory approvals.

The company is currently seeking regulatory approval from the ACPR for its payment services.

The Potential of Hero's Approach

Hero's approach to building a comprehensive banking platform for small businesses has the potential to disrupt the traditional financial landscape in France.

By offering a one-stop solution for managing finances, accepting payments, and obtaining credit, Hero can streamline operations for small business owners.

The company's focus on credit and revenue-based financing addresses a critical need for small businesses, providing them with access to capital and helping them manage cash flow.