Banxware, a Germany-based financial service provider, recently announced it secured €4 million through its first seed funding round, which was led by Force over Mass and VR Ventures.
Founded in 2020, Banxware describes itself as a software provider for Embedded Financial Services. The company enables digital platforms such as marketplaces, payments providers, POS providers, and other aggregators to offer white label financial products, especially loans to their merchants – fully digital and integrated. We ensure small businesses can thrive in a digital world and can tap into every source of funding possible – even future revenues.
“In December of last year, Banxware launched its first embedded product, a white label SME lending solution that is fully integrated in the platform’s look and feel and allows platforms to offer cash-advance loans based on future revenues to their merchants. The credit decision happens in real-time and pay-out happens immediately. For this product, Banxware secured a first EUR 100m loan facility from Vereinigte Volksbank Raiffeisenbank eG.”
Speaking about the investment round, Jens Roehrborn, Founder and CEO at Banxware, stated:
“We are super proud that investors with such a deep experience in our core field of business are sharing our vision of how banking will look like in the future. We look forward to working closely with them on building the leading embedded financial services platform in Europe, maximizing all opportunities that modern technology and Open Banking are offering.”
Miriam Wohlfarth, Founder at Banxware, further commented:
“While traditional bank loans take up to three months and even the most innovative product-based finance up to five days, we were able to drastically reduce this time thanks to newest technologies and artificial intelligence. With us, platforms can offer loans, and within 15 minutes the customer has the money in the bank. This is a new record time which does not exist in the market so far.”
Banxware then noted it will use the seed round’s funding to develop and grow its embedded white label financial services offering and its team, as well as expand sales to digital platforms across Europe. The company added it will soon offer card-based products and other financial services, complementing its existing lending solution to business customers of platforms.