Finmid secures €35m to enhance B2B embedded financing solutions across Europe
Finmid has successfully raised €35 million in an early-stage equity funding round led by Blossom Capital, with notable contributions from Earlybird VC and N26 founder Max Tayenthal. This strategic financial boost is aimed at expanding Finmid’s innovative financial solutions across Europe, specifically targeting small and medium-sized businesses (SMBs) through B2B platforms.
Historically, banking has been a personalized yet localized affair, with local branches catering specifically to the needs of nearby businesses. However, the shift towards consolidation over the last few decades has seen banking become increasingly impersonal and distant, often failing to meet the specific needs of SMBs. Finmid is poised to bridge this gap by enabling B2B platforms such as Wolt and Safi to offer tailored financial services directly to their customers, effectively acting as modern-day banks.
The impact of such services is profound, as SMBs across Europe currently face a financing gap estimated at €400 billion. Finmid’s approach, which involves integrating financial services through simple lines of code, allows these platforms to provide essential financial support seamlessly, fostering growth and sustainability within the SMB sector.
Among the noteworthy partnerships is Finmid’s collaboration with Wolt, a leading tech company renowned for its local commerce platform. This partnership has already yielded Wolt Capital, a pivotal financial tool that offers cash advances to merchants, thus enhancing their operational capabilities.
Nezir Giray, a merchant utilizing Wolt Capital, expressed his satisfaction with the program: “Overall, my experience with Wolt Capital has been very positive, and I’m thankful for the support it’s provided to my business. The flexibility and the quick, efficient process make it a valuable financial tool for entrepreneurs like me.”
Moreover, Finmid has extended its innovative financial solutions to other sectors through partnerships with platforms like Safi, which connects recycling facilities worldwide. This enables these facilities to receive early payouts, ensuring timely cash flow and fostering trust in international trade.
With the fresh influx of capital, Finmid is well-positioned to broaden its reach within core European markets, further localizing operations and enhancing user experience through more integrated financing options. Ophelia Brown, Partner at Blossom Capital, emphasized the transformative potential of Finmid’s approach: “You don’t need banks to offer financial services, and in many ways, they aren’t well-positioned or set up to support the next generation of small & medium businesses. Lengthy approval processes, low approval rates, and high fees are some of the challenges businesses face today in dealing with their banks. Yet, offering financial services is a highly profitable business case. 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. The most innovative & forward-thinking businesses in Europe are already doing so. And finmid is the best partner they can get to do it successfully.”