Berlin-based Fintech finmid has announced a €35 Million funding round following its emergence from stealth mode. Investors include Blossom Capital, Earlybird VC, and N26-founder Max Tayenthal.
finmid is an embedded finance platform that aims to provide platforms with an alternative to working with banks. The company claims with just a few lines of code you can access financial services on a platform.
finmid was founded by former N26 executives Max Schertel and Alexander Talkanitsa. N26 is one of the largest digital banks in Europe.
finmid is launching with two products. The first is a capital solution that allows SMEs to turn sales immediately into cash. An e-commerce platform, Wolt, is already using the service.
The second is B2B payments service.
finmid states there is a €400 billion funding gap for SMEs across Europe, and these firms continue to be underserved by traditional banks.
finmid says it can provide access to financing within 24 hours without a legion of forms and a convoluted process. The credit decisions are based on real-time data – something incumbent banks cannot do.
Schertel says that for hundreds of years, banks have served local businesses, but in recent years, banking has become distant and impersonal, leaving small and medium-sized businesses behind.
“At finmid, we bring business financing back to where businesses are run. With just a few lines of code, finmid enables any B2B software platform to offer financing to their customers, building on existing relationships to fuel their business growth.”
Talkanitsa predicts that traditional banking will no longer be the primary source for business financing.
“Banks still have the largest pool of capital but struggle to deploy it efficiently. It’s time for a new way of banking. We believe B2B software platforms are the future distribution channel for financial services due to their relationships with thousands of businesses. Moreover, these platforms have access to real-time data, enabling streamlined user interactions. 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.”
Without providing hard numbers, finmid reports that it has tripled its revenue in the past few months, signing up well known platforms.
The capital infusion will be used to grow its platform across Europe. finmid did not provide any insight as to future financial services.