ARRAGO

ARRAGO is a Paris, France-based deeptech startup that develops photonic artificial intelligence chips utilizing light instead of electricity to execute complex compute tasks. The company designs semiconductor hardware intended to reduce AI energy consumption by 10 to 30 times while maintaining full compatibility with standard software frameworks and existing data center infrastructure. Operating with a dedicated team of 20 industry experts, the enterprise recently secured $26 million in an oversubscribed seed funding round to expand its research and development operations across France, Israel, and North America. This initial financing was co-led by institutional venture investors Earlybird, Protagonist, and Visionaries Tomorrow, with additional strategic backing from prominent angel investors including Datadog co-founder Olivier Pomel and Hugging Face co-founder Thomas Wolf. ARRAGO was officially founded in 2024 by Eliott Sarrey, Ambroise Müller, and Nicolas Muller.

High-Level Overview

Arrago is a Paris-based fintech company founded in 2017, specializing in Equity Release Mortgages (also known as reverse mortgages or "Prêt 60") for seniors aged 60 and over.[1][4][5] It serves senior homeowners by offering transparent, flexible loans that allow them to access home equity without selling or relocating, addressing the financial needs of Europe's aging population through advanced data analytics and disciplined underwriting.[1][4] In July 2025, Arrago secured a landmark €250mn forward flow agreement and sold a French Equity Release Mortgage portfolio, enabling scaled origination while partnering with institutional investors—demonstrating strong growth momentum in a nascent European market.[1]

This transaction marks Europe’s first Equity Release Mortgage forward flow deal and France’s inaugural one, underscoring Arrago's leadership in innovating for an underserved segment amid rising demand from demographic shifts.[1]

Origin Story

Arrago was founded in 2017 in Paris, France, emerging as a specialist in senior-focused mortgage solutions amid growing recognition of equity release products in Europe.[1][4] While specific founders are not detailed in available sources, the company quickly established itself under CEO leadership by 2023, leveraging deep market expertise and data analytics to originate high-quality loans.[1][4] A pivotal moment came in July 2025 with Alantra's advisory on the €250mn deal, including a forward flow facility for ongoing originations and an existing portfolio sale—structured as a long-term partnership that validated Arrago's operational robustness and risk management.[1] This breakthrough accelerated its traction in France, positioning it as the leading player in a market previously reliant on traditional lending models.[1]

Core Differentiators

• Exclusive Focus on Equity Release: Targets seniors with "Prêt 60," a secure reverse mortgage unlocking home equity without relocation—tailored for France's aging demographic.[1][5]
• Advanced Tech and Underwriting: Combines data analytics with rigorous risk management to originate and underwrite assets, ensuring high-quality loans attractive to institutional buyers.[1]
• Innovative Funding Model: Pioneered Europe’s first forward flow agreement (€250mn in 2025), securing scalable capital via long-term partnerships and defined pricing—freeing resources for growth.[1]
• Market Leadership: As France's top fintech in this niche, it drives transparency and flexibility in a traditionally underserved space.[1]

Role in the Broader Tech Landscape

Arrago rides the aging population trend across Europe, where seniors seek liquidity from home equity amid rising longevity and retirement costs—Equity Release Mortgages are gaining traction as a non-disruptive solution.[1] Timing aligns with regulatory openness and investor appetite for alternative credit, as seen in the 2025 €250mn deal bridging fintech originators with institutional capital.[1] Favorable market forces include demographic pressures (e.g., more seniors owning homes) and structured finance innovation, positioning Arrago to expand beyond France.[1] It influences the ecosystem by proving scalable models for niche lending, potentially catalyzing similar products in other European markets and attracting more fintech-institutional hybrids.[1]

Quick Take & Future Outlook

Arrago's 2025 milestone positions it for rapid scaling, with forward flow facilities fueling originations and portfolio growth in Equity Release Mortgages.[1] Trends like Europe's graying demographics, low interest rates, and fintech maturation will propel demand, while expansions into new countries could multiply its footprint.[1] Its influence may evolve from French pioneer to pan-European leader, unlocking billions in senior equity—watch for follow-on deals and tech enhancements in underwriting AI. This fintech innovator exemplifies how targeted lending meets societal needs, transforming retirement finance one home at a time.[1]