Banxware is a Berlin-based fintech founded in 2020 that provides embedded lending solutions enabling platform-based businesses, fintechs and banks to offer loans to SME customers. The company powers financing on roughly 30 platforms in Germany and the Netherlands and counts partners such as Worldline (Payone), JustEat Takeaway (Lieferando), Qonto, SumUp and Agicap. Banxware employs more than 50 people and targets the underserved long-tail SME market by delivering on-demand financing where businesses manage their operations. The startup recently raised an equity round exceeding €15 million, which will be used to expand coverage into other European markets and to launch additional products addressing more customer segments. The round also creates potential for a strategic partnership with UniCredit and HypoVereinsbank to expand SME lending in Germany and abroad. Existing investors including 13books Capital, VR Ventures, D4 Ventures and Force over Mass increased their commitment in the round. Banxware, founded in 2020 and based in Berlin, operates a lending-as-a-service platform that enables marketplaces and aggregators to offer loans to their customers. The company delivers working capital to small and medium businesses by providing revenue-based financing with repayments tied to customer revenues and risk-based pricing. Current loan sizes range from €3,000 ($3,400) to €50,000 ($57,000), with plans to offer loans up to €200,000 ($267,000) as clients grow. Banxware integrates directly with a German savings bank to deliver financing and works with partners such as Penta, Takeaway.com, and Payone. Management cites improved regulation (PSD2) and real-time credit scoring as tailwinds for customer acquisition. The startup plans to expand its product suite, grow internationally across Europe, and increase headcount to around 70 employees by year-end. To date the company has raised $20 million in total funding. Banxware provides embedded finance primarily as instant loans for SMEs through white-label APIs and partnerships with marketplaces, payments providers and other platforms. Its core product is an instant lending tool that includes AML/KYC compliance and a scoring engine analyzing historic platform data and third-party sources to enable loan decisions and payouts in less than 15 minutes. The company acts as a link between banks (lenders), digital platforms and merchants, enabling banks to reach SME customers while platforms can upsell financial products. Banxware works with both balance-sheet lenders and lending vehicles on whose behalf it executes loan decisions; merchants repay via platforms that withhold a percentage of future payouts. The startup launched in December and plans to develop additional embedded financial services, including card-based products, expand its team and pursue international expansion. It currently generates revenue by charging a one-time fee for each loan processed and a one-off customization fee.

Total raised

$32M

Funding rounds

3

Latest round

Equity

Latest activity

Dec 2023