Finmid Raises $37 Million to Enable Embedded Financing in Europe

Finmid has emerged from stealth and announced it has raised 35 million euros (about $37 million) to expand its embedded financing solution to businesses across Europe.

The company’s solution enables B2B platforms to offer their small and medium-sized business (SMB) customers tailored financing support, finmid said in a Tuesday (April 16) press release.

“With just a few lines of code, finmid enables any B2B software platform to offer financing to its customers, building on existing relationships with restaurants, retailers and traders to fuel its business growth,” Max Schertel, co-founder of finmid, said in the release.

Alexander Talkanitsa, co-founder of finmid, added that the company believes B2B platforms are “the future distribution channel for financial services” because those platforms have relationships with thousands of businesses and access to real-time data.

“By leveraging the extensive reach, data insights and relationships these platforms maintain, alongside financial capital, we’re looking at a modern way of business financing,” Talkanitsa said.

Finmid also announced Tuesday that it has partnered with European tech company Wolt, which is known for its local commerce platform, to enable Wolt to provide financial services to its customers. This partnership enabled Wolt to launch an easy cash advance feature called Wolt Capital, which is designed to support the merchants on its platform, according to the release.

In another collaboration, finmid helped Safi, a marketplace that connects recycling facilities around the world, launch a B2B payments solution, the release said. This solution allows sellers to receive early payouts and buyers to access extended payment terms.

With its new capital, finmid plans to expand to core markets, localize operations and support more financing options, per the release.

The company’s latest funding round was led by Blossom Capital.

“We believe every B2B software platform needs to think about how to leverage financial services to serve better and retain their customers, as well as increase their margins to stay competitive in the long term,” Ophelia Brown, partner at Blossom Capital, said in the release. “

Industries are moving toward a B2B future where companies with recurring commercial clients can retain them with financing offers that they might not be able to get anywhere else, Matthaeus Sielecki, global head of embedded finance solutions at Deutsche Bank, told PYMNTS in an interview posted Wednesday (April 10).

“By doing all this,” Sielecki said of embedded finance, “you become a lot more strategically integrated with your clients and the partners you work with.”