Finmid, a financial infrastructure provider, that enables B2B platforms to offer their small & medium customers access to tailored financing support has raised €35 million in early-stage equity funding from Blossom Capital, Earlybird VC, and N26-founder Max Tayenthal.
The funding will be used to expand to core markets, localise operations, and support more financing options for easier platform integration and a smoother user experience, Finmid said.
It comes at the same time as a new partnership announcement with Wolt, a European tech company known for its local commerce platform.Through its partnerships, Finmid focuses on providing a more personalised approach to customers looking for financial support. It does this by enabling B2B software platforms like Wolt and Safi to act as a bank and turn on financial offerings for each of their customers, from restaurants to retailers.
Commenting on the funding, Ophelia Brown, Partner at Blossom Capital, said: “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.”
In 2023, Wolt partnered with Finmid to enhance their merchant support, introducing ‘Wolt Capital,’ an easy cash advance feature to support their merchants. Safi, a marketplace that connects global recycling facilities, also previously partnered with Finmid to create a bridge between global buyers and sellers via its flexible B2B Payments solution. This allows recyclable facilities to receive early payouts for initial materials while buyers can benefit from extended payment terms, helping manage their cash flow.
Max Schertel, Co-Founder of Finmid said: “At Finmid, our mission is to help every business access the capital it needs. But our approach might surprise you. How do we bring back the relationships that made banking work for so long? With just a few lines of code, Finmid enables any B2B software platform to offer financing to its customers, building on existing relationships with restaurants, retailers, and traders to fuel its business growth.”
Alexander Talkanitsa, Co-Founder of Finmid added: “It’s time for a new way of banking. We believe B2B software platforms are the future distribution channel for financial services as they have relationships with thousands of businesses. Moreover, these platforms have access to real-time data, enabling streamlined user interactions. By leveraging the extensive reach, data insights, and relationships these platforms maintain, alongside financial capital, we’re looking at a modern way of business financing.”
