Fintech Banxware raises €10 million for its business lending solution
Berlin — Berlin-based fintech company Banxware has raised €10 million in a seed expansion round led by Element Ventures. D4 Ventures, FinVC and Varengold Bank AG participate as co-investors. All three VC firms have extensive portfolios of fintech companies.
Banxware’s existing investors Force over Mass, VR Ventures and High-Tech Gründerfonds (HTGF) have significantly increased their investments as part of this round. This also applies to the industry experts who have already invested. They are Jan Kaniess and Carl Frederic Zitscher, founders of Payone; Alex Urdea, former principal at Upper90, a New York City-based debt and equity fund; and Paula Blazquez Solano, partner and co-founder of Credo Capital Partners. The current funding round is the second that the fintech company has undertaken in 2021.
In the course of the financing round, Banxware also restructured its advisory board. New advisory board members from the investor side are Mike McFagden, Filip Coen, Timo Fleig and Jakob Schreyer. The chairmanship of the advisory board was filled by Christoph Bornschein.
Banxware will use the investment to further develop its embedded financial services offering, grow its team and expand product development, sales and marketing to digital platforms across Europe. In the last 12 months, Banxware has managed to integrate its solution with major platforms such as Penta, Takeaway.com (Lieferando) and Prestashop. In Q1 2022, Banxware will integrate embedded financing solutions with 3 leading payment service providers and several other platforms in Germany, and plans to expand its reach to key European markets.
Banxware’s technology enables any company to offer embedded financing products to SME customers. Banxware thus creates the link between banks, digital platforms and merchants, all of whom benefit from Open Banking and the latest technologies.
Platforms: Platforms can enhance their current merchant offering with revenue-based financing products to strengthen both customer loyalty and their own competitive position in the marketplace — all without compromising their platform’s user interface. This will create an additional revenue stream, enabling the platform to offer more competitive prices for its core products.
SMEs: SME customers benefit from a fast, convenient and fully digital financing approval process that allows them to access financing within minutes.
Banks: Banxware offers banks access to a new set of customers and accelerated, digitized risk assessment to digitize lending and target underserved and digitally savvy customers that traditional banks would not otherwise reach.
Unlike other financial solutions on the market, Banxware stands out because of its fully digital, embedded approach:
Last December, Banxware launched its first embedded product, a white-label SME financing solution that is fully integrated into the look and feel of the platform and allows platforms to offer liquidity to their merchants based on future revenue. The financing decision is made in real time and the disbursement is immediate. For this product, Banxware secured an initial loan volume of 100 million euros from Vereinigte Volksbank Raiffeisenbank eG.
The founding team
Banxware was founded in September 2020 by Miriam Wohlfarth (photo from Banxware) and Jens Roehrborn, both of whom are well-known in the industry. Miriam Wohlfarth is probably the best-known fintech founder in Germany. In 2009, she founded Ratepay, a leading payment provider for white-label buy-now-pay-later solutions, which is part of the Nets‑A/S group, employs over 300 people* and is fully profitable.
Jens Roehrborn, CEO of Banxware, is a lawyer with more than 20 years of experience in the payments and banking industry. Jens has been a board member and/or consultant at PPRO, Deutsche Handelsbank, Orderbird, Stocard, Lieferando, Railsbank and many others.
Together with Fabian Heiß, former Head of Business Unit at Finleap, Nicolas Kipp, ex-Chief Risk Officer at Ratepay and Diogo Simoes, former Head of Engineering at Klarna, Banxware is well equipped to shape the future of financing solutions.
About Element Ventures
Element Ventures is a global venture capital fund that invests in B2B financial technology companies. Element’s partners are proud to have supported some of the best founders and companies in the industry. Element’s mission is to support bold founders who are developing the financial technology of tomorrow.
About Force over Mass
Force Over Mass Capital is an FCA-regulated venture capital firm focused on early-stage technology investments in the UK and Europe. The company invests in B2B innovations in four verticals: Fintech, Artificial Intelligence, SaaS and Industry 4.0. Force Over Mass operates both seed and scale-up funds to support early-stage companies on their growth journey.
About VR Ventures
The venture capital fund was established to drive innovation in the financial industry. VR Ventures invests in early-stage startups in the European FinTech and PropTech sectors, as well as in innovative digital solutions for small and medium-sized enterprises. Many of VR Ventures’ investors are part of the Volksbanken Group. VR Ventures leverages this unique network and expertise to support its portfolio companies beyond the financial. The fund management of VR Ventures and the VC firm Redstone work together as one team.
About High-Tech Gründerfonds
The seed investor High-Tech Gründerfonds (HTGF) finances technology start-ups with growth potential. With a volume of around EUR 900 million spread across three funds and an international partner network, HTGF has supported more than 650 start-ups since 2005. His team of experienced investment managers and start-up experts supports the young companies with know-how, entrepreneurial spirit and passion. The focus is on high-tech start-ups in the fields of digital tech, industrial tech, life sciences, chemistry and related business areas. More than EUR 3.5 billion in capital has been invested in the HTGF portfolio by external investors in more than 1,800 follow-on financing rounds to date. In addition, the fund has already successfully sold shares in more than 150 companies.