Finmid, a Berlin-based startup, has raised €23 million ($24.7 million) in a Series A round to expand its embedded fintech solutions targeted towards marketplaces offering their own payment and financing options. This funding round values the company at €100 million ($107 million) post-money.
Marketplaces are ideal targets for embedded finance companies as they facilitate a significant amount of transaction activity. This, in turn, allows marketplaces to enhance their margins by incorporating additional financial services.
Finmid aims to capture more business in Europe by providing small and medium-sized businesses with access to capital through their business partner network rather than traditional banking institutions. This approach offers a more seamless and integrated financing solution.
For example, food delivery brand Wolt leverages finmid’s technology to offer cash advances to its restaurant partners directly within its app. By analyzing the sales history, Wolt can tailor financing offers to specific partners, a capability that traditional banks lack.
Image Credits: finmid
The working capital is provided by finmid’s financing partners, and both finmid and the platform earn a percentage of every transaction. This partnership enables platforms like Wolt to streamline operations and generate additional revenue effortlessly.
Since its inception during the pandemic, finmid has raised €35 million in equity funding. The company’s approach to embedded finance has gained traction, attracting investors who recognize the potential for success in partnering with marketplaces.
Looking ahead, finmid plans to expand its operations into new markets such as Italy while continuing to enhance its product offerings and grow its team with experienced professionals, especially in finance.
With a strong foundation in financial infrastructure and a focus on reliability, finmid is poised to capitalize on the growing demand for integrated financing solutions across various industries.
