Banxware, a German fintech company, has raised over €15 million in an equity round. Key participants included UniCredit, Fabrick – a pioneer in Open Finance supported by Sella Investment Banking, and existing backers like 13books Capital. The funding is not only a testament to Banxware’s success but also a catalyst for future growth. It paves the way for expanding into new European markets and developing additional products to serve a wider range of customer segments.
Addressing a growing need
In today’s dynamic digital economy, the demand for flexible financing is increasingly vital. Against this backdrop, Berlin’s Banxware, a fintech startup, is carving a niche. Founded in 2020 by Fabian Heiß, Jens Röhrborn, and Miriam Wohlfarth, Banxware specializes in embedded lending solutions for platform-based businesses, fintechs, and banks. The startup, now with over 50 employees, has facilitated financing for business customers through 30 platforms in Germany and the Netherlands. Consequently, it’s effectively bridging a crucial gap in the long-tail SME market. Clients like Worldline (Payone) and JustEat Takeaway (Lieferando) illustrate its reach and impact. Moreover, the integration of financing solutions into business platforms offers seamless access to liquidity for SMEs, e-commerce sellers, and restaurant owners.
Strategic collaborations
Additionally, the funding round opens doors for strategic partnerships, particularly between Banxware and UniCredit’s German bank, HypoVereinsbank. Fiona Melrose, Head of Group Strategy & ESG at UniCredit, underscores the partnership’s potential. It offers enhanced technological and digital solutions for SME clients and access to new customer bases. This collaboration could further extend to other regions, fostering innovation and business development. Jens Röhrborn, co-founder of Banxware, emphasized the investment’s impact. He highlighted their focus on SMEs that are not the right fit for traditional bank loans, expanding their reach within the SME sector.
A commitment to embedded finance
The investment’s significance is echoed by Michael McFadgen from 13books Capital. He expressed renewed confidence in Banxware’s approach to SME lending, leading to 13books Capital continued investment.
Paolo Zaccardi, Fabrick Co-Founder and CEO, also reflected on the investment. He recognized Banxware as a key player in the future of embedded finance, aligning with Fabrick’s vision of Open Finance’s evolution. This collaboration is poised to significantly influence SME financing within the evolving financial landscape.
In a broader context, similar initiatives like London’s iwoca securing a £200 million debt facility and a Deliveroo backer’s investment in Triver’s £7 million funding round are also transforming SME credit access. These developments collectively underscore a growing trend towards innovative lending solutions in diverse sectors, revolutionizing access to credit for SMEs.
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