Czech Republic-based 4Trans, a fintech company that specialises in financial products for supply chain and transportation firms, has raised €18M in funding from investors such as Atmos, Tera Ventures, and Lighthouse. Advance Global Capital has also provided the firm with a revolving credit facility.
Revenue increased 10-fold
The raised capital will be used to boost domestic operations, expand to Poland, develop its platform, and expand its international workforce. It will help the working capital needs of small and medium-sized businesses in the region with the debt money given.
The funding came after a period of expansion in 2022, during which 4Trans‘s customer base rose to 500 and monthly income jumped tenfold as a result of the supply chain issue. 4Trans has supplied over €30M in finance to date, preserving revenue from over 50,000 invoices.
Jaroslav Ton, CEO of 4Trans, said, “The supply chain crisis alongside political and economic uncertainty has led to a huge increase in delays to invoices being paid. This has put considerable financial pressure on Europe’s small and medium sized hauliers. Unfortunately, most traditional financial institutions simply do not cater to this group and those that do take too long to provide financing or require very large invoices. We’ve created a range of solutions that give the small and independent entrepreneurs within the European supply chain the protection they need and deserve.”
“With this new funding we will be able to expand rapidly and develop the financial services we offer.”
Hadi Solh, Managing Partner at deep-tech focused Atmos Ventures, said, “4Trans is a pioneer in AI-enabled risk assessment in supply chain financing. The speed at which the company is able to understand the real-time credit risk of the counterparties is unparalleled in trade finance focused solutions in the market. We are confident that our investment will help 4Trans with increasing their international footprint.”
Leader in SME financing in Europe
Founded in 2018 by Jaroslav Ton in Prague, 4Trans provides finance to SMEs and other logistics firms. Most of Europe’s 500,000 logistics companies deal with a lack of operating cash, 90-day invoice maturities, and frequently expensive or unattainable bank credit. The firm solves this through factoring, which provides quick payment of issued invoices, verification of debtor payment behaviour, and a financial solution for SMEs in logistics. Further, 4Trans provides a real-time data-based ecosystem of financial services based on a solid understanding of financing.
Stanislav Ivanov, Founding Partner of Tera Ventures, said: “Innovation continues to penetrate new niches and verticals of the financial industry and 4Trans is a perfect example where designing products and services from the ground up using latest technology enables to provide customers with the much needed product and delightful experience unattainable by incumbent players. We are excited to partner with the 4Trans team on the journey of making everyday life of thousands of people in logistics that are powering the European economy a little bit better”.
Michal Zalesak, Co-Founder of Lighthouse Ventures, said: “4Trans have created a solution that tackles a very real problem for Europe’s supply and logistics industry. Namely, there is very little financial protection for hauliers and SMEs”.
“The simplicity and speed of 4Trans’ solution makes it a game changer for hauliers. It’s a great application of AI and digitalisation. We are looking forward to supporting 4Trans on its journey and confident it will soon be a major player in European logistics.”
Sudha Bharadia, Co-CEO of Advance Global Capital Ltd, said: “We are delighted to support 4Trans with our debt financing. Their solution is vital in supporting SMEs in the region.”
With a total volume of financed invoices worth over €32 million, 4Trans aims to become the leader in SME financing in Europe.