Berlin-based lending-as-a-service provider Banxware raises 10m in a funding round that includes the technology investment platform D4 Ventures founded by Hanzade Dogan in London

The future of banking is embedded: Embedded Financial Services bridge the gap between traditional banks and modern tech-driven platforms, diversifying financial services and increasing access to finance. Banxware, one of the unique examples of embedded finance, is a lending-as-a-service provider that enables digital platforms such as marketplaces, payments providers, and other aggregators to offer embedded lending products such as white label merchant cash advance. The credit decision through the platform happens in real-time, and pay-out occurs immediately. For this product, Banxware secured the first EUR 100 million loan facility from Vereinigte Volksbank Raiffeisenbank eG.

Although embedded finance is usually associated with B2C retail payments, banking, and lending services in the market, embedded finance services with a B2B focus are about to become more widespread in the near future, revolutionizing SME and corporate finance services. Therefore, Banxware’s funding round, which extended the existing group of investors including Force over Mass, VR Ventures, HTGF, and a group of international industry experts in banking, payments, and e-commerce, stands out. Banxware already processed loans on five platforms within one year, and this is the second round the Fintech raised in 2021.

“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.” – Jens Roehrborn, Founder and CEO of Banxware

Banxware’s EUR 10 million Seed Extension round is led by Element Ventures and joined by co-investors D4 Ventures, FinVC, and Varengold Bank AG. All three VC firms have an extensive portfolio of Fintech companies.  D4 Ventures is very well-known to the Turkish ecosystem among this new group of investors. It was founded by Hanzade Dogan, one of the world’s leading women tech entrepreneurs and the Founder and Chairwoman of Hepsiburada.

“We have a strong conviction that easy access to credit is highly critical for merchants and SMEs. Banxware has built an excellent embedded finance technology to offer that via seamless integration with marketplaces, payment providers and others.

We have been truly impressed by the team’s pedigree and their vision for the future of Banxware. We are extremely excited to join their journey at this time and look forward to helping the team scale up Banxware across international markets.” – Serhat Aydogdu, Investor at D4 Ventures

Banxware was founded in September 2020 by Germany’s well-known Fintech experts. The founding team consists of Miriam Wohlfarth, the founder of Ratepay, a leading and profitable payment provider for white label buy-now-pay-later solutions, and Jens Roehrborn, a qualified lawyer with over 20 years of experience in the payments and banking industry, including PPRO, Deutsche Handelsbank, Orderbird, Stocard, Lieferando, Railsbank. The expert team also includes other prominent talents such as Fabian Heiß, former Head of Business Unit at Finleap, Nicolas Kipp, Ratepay’s Ex-Chief Risk Officer and Diogo Simoes, former Head of Engineering at Klarna.

The embedded finance platform will use the investment to further develop and grow its embedded financial services offering and its team, and expand development, product, sales and marketing to digital platforms across Europe. During the last 12 months, Banxware managed to integrate into large platforms such as Penta, (Lieferando) and Prestashop. In Q1 of 2022, Banxware will launch embedded lending products with 3 leading payment service providers and several other platforms in Germany and intends to expand its outreach throughout major European markets. With the new funding round, Banxware will likely convert more traditional companies into Fintechs, increasing the lending market share.

As competition is growing internationally in the embedded finance vertical, we should add that seeing the increase in female-founded Fintech platforms supported by female-led investors is a noteworthy moment for the whole Fintech ecosystem.

“We see a huge demand in the market and more and more platforms are emerging. With us, those platforms can offer fully integrated super-fast online loans to help their customers grow. Since we look at recent sales revenues and not at historical financial statements, we can also support very young companies that normally have huge difficulties to access liquidity.” – Miriam Wohlfarth, Founder of Banxware

Gazi University Faculty of Law graduate Ş. Elif Kocaoğlu Ulbrich has degrees in Private Law from Galatasaray University and MBA from WHU – Otto Beisheim School of Management, and is also a fellow of Jean Monnet, Joachim Herz Stiftung. After working as a lawyer in various international law firms in Istanbul and Ankara for more than six years, Denizbank A.Ş. He started his banking and finance career in 2013, specializing in business development, project management, FinTech regulation and lobbying activities at FinTech startups (FinLeap, Cringle, Lendico) in Hamburg and later in Berlin. Co-author of The PAYTECH Book, The AI ​​Book and The LegalTech Book, which are planned to be published in 2020 in cooperation with FINTECH Circle and Wiley, Kocaoğlu Ulbrich has been providing consultancy, training and publishing services since 2019 through Berlin-based Contextual Solutions, which she is the founder of.