Viable, a UK-based fintech startup, has closed its seed funding round, securing £2.4 million to develop financial technology solutions specifically designed for online and multi-channel merchants.
The funding round follows an earlier pre-seed investment in 2023 and involved participation from prominent names like Episode 1, Haatch, Portfolio Ventures, and angel investors including Martin Brailsford, former CEO of e-commerce group Internet Fusion.
Earlier this month, Purple Dot, a platform for pre-orders and waitlists in e-commerce, had also announced the closing of a $10 million Series A funding round.
What problem is Viable solving
Viable is focused on building “verticalized finance technology,” aiming to streamline financial operations and optimise working capital for the growing number of online businesses selling through platforms like Shopify, Amazon, and TikTok.
These businesses, according to Viable, face a unique set of financial challenges due to the post-pandemic landscape. Factors like changes in the debt and equity landscape, rising costs, and increased competition are putting pressure on their financial performance.
Leveraging open banking and AI for optimised finance
Viable launched an initial version of its technology in 2023, specifically targeting businesses in the fashion, beauty, and health & wellness sectors. The company claims early success and plans to utilise the seed funding to accelerate the development of embedded finance products, potentially increasing accessibility for merchants. Viable’s technology leverages advancements in open banking, payments, and AI infrastructure to deliver its solutions.
Addressing cash flow challenges and enabling growth
Investors in the funding round seem optimistic about Viable’s potential. Simon Murdoch, managing partner of Episode 1, highlights the difficulties faced by e-commerce businesses in predicting cash flow and making strategic financial decisions. Viable, according to Murdoch, offers a solution for accessing cost-effective expert financial guidance.
Similarly, Reece Williams, co-founder of beauty-tech brand mdlondon, emphasises how Viable’s technology connects daily business performance with future projections. This, Williams claims, has allowed his company to expand into new markets, launch new products, and optimise growth while managing cash flow effectively.
Building intelligent finance products for next-generation businesses
Viable co-founder and CEO Franklyn Martin emphasises the growing disconnect between traditional financial management and the needs of early-stage online brands. He highlights the need for these businesses to scale efficiently with lean teams and strong financial performance.
Viable aims to bridge this gap by building intelligent finance products that offer functionalities such as transaction processing, financial reporting, budget adaptation, scenario visualisation, and funding access. Ultimately, Viable aims to provide a comprehensive solution that improves financial outcomes for the next generation of online and multi-channel merchants.
What do we think about the startup
Viable’s seed funding and initial product launch indicate a potential solution for the financial challenges faced by a growing segment of e-commerce businesses. The company’s focus on leveraging technology and open banking provides a unique approach to optimising working capital and facilitating growth for online merchants.
