Wavo raises €10m for inventory finance expansion in France

French inventory-financing specialist Wavo has raised €10m in new funding, backed by investors including Eurazeo, as it seeks to expand a financing model that releases working capital from physical stock without using conventional secured loans.

The company said it has already financed €35m of inventory across sectors including retail, manufacturing, mobility, energy and professional equipment, supporting what it estimates to be almost €100m of customer sales.

The new capital is intended to increase Wavo’s financing capacity in France, expand its technology operations and support preparations for international growth.

Unlike a conventional inventory-backed credit facility, Wavo’s model involves purchasing eligible stock from a business while allowing the original owner to retain physical possession and continue selling it.

The business then repurchases the relevant inventory from Wavo progressively as sales take place.

Wavo describes these transactions as asset purchases rather than loans, arguing that the structure allows companies to release cash without increasing conventional borrowing.

The company says that, once inventory has been assessed and approved, businesses can receive financing within 48 hours.

This structure addresses a recurring problem for companies carrying substantial stock: cash must often be committed to purchasing or manufacturing inventory well before customers generate sufficient sales revenue.

For businesses experiencing rapid growth or seasonal demand, this can create working-capital pressure even when sales prospects remain strong.

Wavo currently reports typical financing transactions of €200,000 to €2m and intends to double the upper amount available per business.

That increase remains a target rather than an established expansion of the product.

The company’s published pricing information indicates daily charges of 0.05% on financed amounts, alongside a repurchase fee of up to 5%, with terms depending on the inventory and expected resale period. These charges need to be considered when comparing the arrangement with traditional inventory finance.

Wavo is also targeting expansion into Northern Europe and potentially the United Kingdom, although no completed international rollout was announced.

The funding is notable because it supports a working-capital structure based on inventory ownership rather than a conventional borrowing base secured over stock.

Its wider significance will depend on whether the model can expand transaction volumes while maintaining reliable inventory valuation, ownership controls and timely stock repurchases.