Berlin-based Banxware has closed a €4m seed funding round hot on the heels of its December launch.
The embedded finance FinTech is set up to offer loans to SMEs, in partnership with marketplaces, payment providers and others, according to TechCrunch.
Pomelo Pay and Artificial investor Force Over Mass led the round together with VR Ventures. HTGF and a smattering of private investors also joined the raise.
Banxware will use the money to fuel the further development of its solution and to grow its team.
“SMEs have a hard time to access capital when needed, especially when they are less than three years old or do not have the most pristine credit history,” said Jens Röhrborn, co-founder and CEO of Banxware, when speaking with TechCrunch.
“On top of this, loan applications, i.e. loan decisions and loan payout, still take several weeks in most cases.
“More and more sellers and merchants are using digital platforms through which they sell their products or process their digital payments. By using the recent historic data on these merchants provided by the platforms, we can lend against their future revenues.”
Banxware is not alone in the embedded FinTech space. Other companies in the industry include Hydrogen Technology Corporation and Liberis.
Copyright © 2021 FinTech Global
