German fintech startup secures $ 11.3 million funding extension

0
  • Berlin-based Banxware has raised $ 11.3 million in new funding as it seeks to expand its product.
  • The integrated finance startup provides capital to small businesses through credit.
  • The extension of the funding round brings the total funding raised for Banxware to $ 20 million.

A fintech that provides working capital to small and medium-sized businesses through credit raised $ 11.3 million in new funds.

Embedded finance start-up Banxware, founded in 2020, has developed a platform that enables marketplaces and aggregators to offer loans to their clients. The Berlin-based lending-as-a-service start-up secured the funds in a startup extension.

“What we have seen is a need for small traders to obtain


liquidity

in order to grow, especially through the crown, ”Miriam Wohlfarth, co-founder of Banxware, told Insider.

“E-commerce is growing, but young businesses, especially those under two years old, don’t get bank loans and use prepaid credit cards and other products, but it’s a lot of effort. for liquidity. ”

Wohlfarth, previously founder of ‘buy now, pay later’ start-up Ratepay, added that improved regulations like Europe’s


open bank

The PSD2 guideline and real-time credit scoring have helped Banxware attract customers.

The company offers loans between € 3,000 ($ 3,400) and € 50,000 ($ 57,000) with risk-based pricing and repayments based on client income. Banxware is keen to use the financing to expand its product line as its customer size grows with loans of up to € 200,000 ($ 267,000) expected later.

New investors in the cycle included FinVC, Element Ventures, D4 Ventures and Varengold Bank AG. They were joined by the company’s existing investors including Force over Mass, VR Ventures and HTGF.

Banxware works with companies such as German investment banking startup Penta, Takeaway.com and, more recently, German payments company Payone.

Banxware is not in itself a bank but rather offers its income-based financing through direct integration with a German savings bank. The funding, bringing Banxware to $ 20 million raised to date, will be used to increase the workforce to approximately 70 people by the end of the year.

“Customer demand has changed to become ‘Amazonized’,” Wohlfarth added. “They want a frictionless process and they got used to it. We want to expand internationally and not be just a German company, but a European champion of integrated lending.”

Check out the Banxware pitch deck below:

Share.

Comments are closed.