Berlin-based Fintech Banxware has raised EUR 4 Million in a seed round led by Force over Mass and VR Ventures. Both VC firms have extensive portfolios of Fintech companies.
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Furthermore, severalFintech pioneers from the payments and SME lending space have joined the initiative, including:
HTGF, a public-private venture capital investment firm based in Bonn, Jan Kaniess and Carl Frederic Zitscher, the founders of Payone, Alex Urdea, Principal at Upper90, a New York City based debt and equity fund, CJ Lanktree, Partner at Solus Alternative Asset Management, a New York City based investment advisor, as well as Paula Blazquez Solano, Principal at Innocells, the venture arm of Banco Sabadell in Spain. This is the first external capital the fintech has raised.
Banxware will use the investment to develop and grow its embedded white label financial services offering and its team, as well as expand sales to digital platforms across Europe. Banxware will soon offer card-based products and other financial services, complementing its existing lending solution to business customers of platforms.
The future of banking is embedded: Embedded Financial Services bridges the gap between traditional banks and modern tech-driven platforms
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Banxware’s technology enables any company to offer loans and other banking services to SME customers. Banxware thus creates the link between banks, digital platforms, and merchants and enables all parties to benefit from the latest state of the art technologies and open banking:
Banks: Banxware offers banks access to a new target audience as well as an accelerated,
digitalized risk assessment to digitize their loan origination.
Platforms: Platforms will be able to upsell their current offering to merchants with financial products in order to strengthen both customer retention and their own competitive position in the market without disruption of their platform UX.
Merchants: Merchants benefit from a fast, convenient and fully-digital credit approval process that allows them to get access to financing within 15 minutes.
Banxware expects a rise in demand for embedded financial services from platforms of all sizes and industries as well as big tech incumbents that want to become the center of their customers’ business.
