German Fintech Banxware Raises $17M to Bridge Financial Gaps for SMEs

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Fintech startups leveraging data-driven technologies to seamlessly integrate lending solutions across various platforms are gaining substantial attention. The latest addition to this trend is Berlin-based Banxware, specializing in embedded lending solutions, which recently concluded a successful equity round, raising over $16.4 million.

UniCredit and Fabrick, a European pioneer in Open Finance supported by Sella Investment Banking, led the funding round. Banxware’s existing investors, including 13books Capital (formerly known as Element Ventures), VR Ventures, D4 Ventures, and Force over Mass, also participated. This funding not only boosts Banxware’s growth but also lays the foundation for a potential strategic partnership with UniCredit’s German bank HypoVereinsbank to expand services for SME clients in Germany and beyond.

Founded in 2020 by Fabian Heiß, Jens Röhrborn, and Miriam Wohlfarth, Banxware specializes in embedded lending solutions tailored for platform-based businesses, fintechs, and banks. Currently servicing 30 platforms in Germany and the Netherlands, Banxware addresses the underserved long-tail SME market, counting Worldline (Payone), JustEat Takeaway (Lieferando), Qonto, SumUp, Agicap, and others among its clients. The fintech enables these platforms to offer quick and easy financing to their business customers directly within their operational interfaces.

The fresh funding will fuel Banxware’s expansion into additional European markets and support the launch of new products to cater to a broader customer base. Jens Röhrborn, co-founder of Banxware, expressed gratitude for the investment from one of Europe’s largest banks and the continued support from existing investors. Röhrborn emphasized that Banxware’s approach of offering loans to SMEs within platform ecosystems aligns with the natural evolution of platform-based SME lending.

Fiona Melrose, Head of Group Strategy & ESG at UniCredit, highlighted the investment as a testament to the group’s commitment to technological and digital advancements for customer benefit. The partnership with Banxware presents an opportunity to broaden lending propositions and access new customer bases. Michael McFadgen, partner at 13books Capital, emphasized the revolutionary nature of Banxware’s embedded approach to SME lending.

Paolo Zaccardi, Fabrick Co-Founder and CEO, positioned the collaboration with Banxware as strategic support for the growth of SME financing within the evolving landscape, recognizing Banxware as a trailblazer in Embedded Lending. The successful funding round underscores Banxware’s business model and achievements, paving the way for continued innovation and expansion.

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