In an ever-changing digital economy, the significance of flexible financing is on the rise. Data-driven technologies that effortlessly integrate lending solutions across diverse platforms, facilitating access to much-needed liquidity for SMEs, e-commerce sellers, and restaurant owners, are gaining considerable traction. Notably, London’s iwoca recently secured a £200 million debt facility, bridging the financial gap for SMEs. Additionally, a backer of Deliveroo backer invested in Triver’s £7 million funding round, aiming to revolutionise how small businesses access credit. The momentum continues with Berlin-based fintech Banxware, specialising in embedded lending solutions, successfully raising an equity round exceeding €15 million recently.
UniCredit and the European pioneer in Open Finance, Fabrick, supported by Sella Investment Banking, joined the funding round, with backing from Banxware’s current investors 13books Capital (formerly known as Element Ventures), VR Ventures, D4 Ventures, and Force over Mass. For Banxware and UniCredit’s German bank HypoVereinsbank, this step also creates the opportunity for a strategic partnership to expand business with SME clients in Germany and abroad.
Closing the crucial gap
Founded in 2020 by Fabian Heiß, Jens Röhrborn and Miriam Wohlfarth, Founder Team of Banxware, the fintech startup Banxware specialises in embedded lending solutions tailored to platform-based businesses, fintechs banks and employs 50+ people.
The German startup currently enables 30 platforms in Germany and the Netherlands to offer financing to their business customers, closing a crucial gap in the underserved long-tail SME market with customers like Worldline (Payone), JustEat Takeaway (Lieferando), Qonto, SumUp, Agicap, and others. Business customers can effortlessly obtain financing quickly and easily, right where they manage their business activities.
The latest funding round will allow Banxware to further expand its coverage into other European markets, as well as to launch additional products to address even more customer segments.
“This investment underlines our ambition to further enhance the Group’s technological and digital drive to the benefit of our customers. With Banxware’s financing solutions we can broaden our lending proposition and complement our existing offering for SME clients, also gaining access to a new customer base. Partnerships of this kind, that could be extended to other geographies, always offer opportunities to exchange ideas, learn from each other and jointly develop new areas of business.” says Fiona Melrose, Head of Group Strategy & ESG at UniCredit.
“The investment by one of Europe’s largest banks and the commitment of our existing investors doubling down in this financing round is a huge testimony to our business model and what we have achieved,” says Jens Röhrborn, who founded Banxware in 2020 together with Miriam Wohlfarth and Fabian Heiß. “For us, offering loans to SMEs that hold accounts with banks but are just not the right fit for a bank loan, is a natural expansion of our platform-based SME lending,” says Röhrborn.
“After investing in the Seed round in 2021, we have deepened our conviction that Banxware’s embedded approach to SME lending is revolutionary. On-demand SME financing delivered through platforms SMEs are already using, provides a unique advantage to the Banxware model. The team has overdelivered on platform partners live and addressable SMEs through these platforms since we invested, which is why we are doubling down on our investment in Banxware.” says Michael McFadgen, partner at 13books Capital (formerly Element Ventures).
“Fabrick is committed to the future of embedded finance, viewing it as the natural evolution of Open Finance. As industry pioneers, we’re investing strategically in Europe, and our collaboration with Banxware supports the growth of SME financing within the evolving landscape. We see in Banxware not just a company to invest but a partner as a trailblazer in Embedded Lending.” says Paolo Zaccardi, Fabrick Co-Founder and CEO.
