Israel’s Viola Credit secures $2b fund for fintech lending
- ByStartupStory | October 30, 2025
Israel’s Viola Credit has announced the final close of its third Asset-Based Lending (ABL) fund at $2 billion, significantly surpassing its initial target of $1.5 billion. This milestone marks one of the largest dedicated fintech lending funds globally and highlights strong investor confidence in alternative credit solutions for technology and fintech companies. Viola Credit’s new fund will fuel growth and innovation across a range of fintech lending sectors, providing flexible capital to scale businesses reshaping financial services.
Expanding Fintech Lending with a $2 Billion Fund
Viola Credit’s $2 billion fund is designed to provide customized credit facilities to approximately 30 to 40 fintech and tech-enabled lenders operating mainly in the U.S., U.K., Western Europe, and Australia. Credit lines ranging between $25 million and $300 million per company will be extended to firms spanning sectors such as small- and medium-sized enterprise (SME) finance, consumer lending, payments, buy-now-pay-later services, and embedded finance.
The fund exemplifies strong institutional demand for private credit opportunities, especially amid growing relevance of asset-based lending within the innovation economy. Investors involved in the fund include a diverse group of global institutions, such as pension funds, insurance companies, and family offices, reflecting wide-ranging trust in Viola Credit’s underwriting expertise and strategic vision.
Viola Credit’s Role in the Innovation Economy
As Israel’s leading alternative credit asset manager focused on the technology sector, Viola Credit builds on an impressive track record exceeding $3 billion in completed asset-based lending transactions. Its mission centers on providing growth capital to fintech, proptech, and insurtech companies, many of which disrupt traditional financial services with innovative, scalable credit offerings.
Ido Vigdor, Managing Partner at Viola Credit, highlighted the fund’s focus on fintech companies that “have capital-intensive lending businesses and need support.” He explained the range of underlying collateral includes SME loans, consumer credits, music royalties, and embedded lending. Viola Credit’s model prioritizes carefully assessed, sustainable lending relationships, avoiding speculative exposures such as crypto or exotic financial products.
Strategic Partnerships and Market Position
The $2 billion fundraising builds on Viola Credit’s first close of $600 million in April 2024 and a $500 million strategic joint venture announced with Cadma Capital Partners—an affiliate of Apollo Global Management—in May 2025. This JV supports the ongoing expansion of Viola Credit’s asset-based lending activities in key Western markets, enhancing its capacity to support emerging and established fintech lenders.
Ruthi Furman, Managing Partner, emphasized the fund’s role in fueling fintech growth by supporting the credit extended to end customers. The fund provides a vital capital bridge to fintech businesses integrating credit into their product offerings, enabling them to innovate without liquidity constraints. Furman noted the fund’s conservative underwriting approach focused on companies with strong prospects, underscoring disciplined risk management in a challenging interest rate environment.
Growing Demand for Alternative Credit in Fintech
The launch of this fund coincides with a global rise in demand for alternative financing solutions as fintech companies face tightening traditional credit conditions and evolving regulatory landscapes. Asset-based lending offers an attractive capital model that mitigates risk through collateralization while enabling fintechs to scale loan books efficiently.
With increasing competition in sectors such as buy-now-pay-later, consumer credit, and SME financing, access to flexible growth capital is pivotal. Viola Credit’s $2 billion fund expands directly into this opportunity, contributing to the maturity of the fintech lending ecosystem and supporting companies pushing financial innovation forward.
Implications for the Fintech Ecosystem
Viola Credit’s ability to raise a $2 billion fund—significantly oversubscribed relative to the $1.5 billion goal—signals strong optimism among institutional investors about the outlook for fintech-powered lenders. The fund will enable Viola Credit to back companies capable of disrupting and modernizing financial services, providing not just capital but also industry expertise and strategic partnership.
By focusing on sectors such as SME finance, payments, embedded lending, and consumer credit, Viola Credit supports the backbone of financial innovation reaching underserved market segments. This financial backing will likely accelerate product development and geographic expansion for many portfolio companies, ultimately benefiting businesses and consumers through more inclusive and efficient credit access.
Viola’s Role in Israel’s Thriving Tech Landscape
As part of the broader Viola Group—the largest and most active technology investment group in Israel—Viola Credit exemplifies Israel’s leadership in fintech investment and innovation. With over $6 billion in assets under management through its various investment arms, Viola fosters development from startup inception to growth phases across multiple technology sectors.
Viola Credit’s new fund strengthens Israel’s fintech export strategy by enabling local and global companies to scale responsibly and competitively in international markets. The fund’s geographic focus spans developed fintech hubs across the U.S., U.K., Europe, and Australia while sustaining investments in promising Israeli companies, maintaining a balance between local innovation and global market reach.
Looking Ahead
With $2 billion in deployable capital, Viola Credit is positioned to significantly influence the future of fintech lending globally. The fund’s backing will empower dozens of fintech companies to scale lending operations, innovate credit products, and improve customer experiences in a rapidly evolving financial services landscape.
This latest fundraising success also underlines the increasing institutional embrace of private credit and asset-based lending as alternative growth financing forms—especially important in markets where traditional debt provisions tighten or become costlier.
In summation, Viola Credit’s third asset-based lending fund is a landmark event in fintech financing, boosting capital accessibility and fostering innovation in financial technology worldwide. As the fund deploys across multiple sectors and regions, Viola Credit’s continued leadership promises to shape the trajectory of fintech lending in years to come.
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