Fintech Flowpay €2M Funding To Ease SME Financing And A leap

Prague-based Fintech Flowpay Scores Over €2 Million To Further Ease SME Financing And More Accessible Through Embedded Finance

Fintech Flowpay

Czech’s fintech Flowpay, which uses predictive AI models, automation, and Embedded Finance to help SMEs access better operational funding, has reportedly raised €2.1 million in its seed round. The round was backed by Techstars in conjunction with rising Czech VCs such as Soulmates Ventures and DEPO Ventures, and key angel investors like ‘Martin Herrmann’, ‘Mark Ransford’, ‘Allard Luchsinger’, and others.

Poised to broaden its reach, the fresh investment will allow Flowpay to scale beyond the Czech Republic, enhance its technological capabilities, and offer its services to a wider range of SMEs.

Founded in 2021, the subject fintech has achieved significant success, including participating in the prestigious Techstars accelerator in Amsterdam. Flowpay has emerged as an integral player in the operational finance market thanks to its innovative platform and use of AI, the latter enables companies to quickly and easily obtain financing based on the analysis of real operational data.

Flowpay with other six European startups was accepted to the IBM fintechx program, which focuses on accelerating the adoption of generative AI in financial services. It’s also worth noting that Floypay won Technology Startup of the Year in the Vodafone Idea of the Year competition.

Founder and CEO of Flowpay ‘William Jalloul’, explained: “Even if you have a profitable and fast-growing business, banks might still not give you a loan when you need it for something like stocking up your warehouse or investing in advertising. Banks cannot assess risk precisely and usually just look at tax returns, which are outdated and most often do not reflect reality.

At Flowpay, we work with client data taken directly from their point-of-sales systems, e-commerce platforms like Shoptet, and use AI to rate their potential to obtain financing. We want to help SMEs grow with our Risk as a Service (RaaS) solution and license it to financial institutions around the world”.

Plans are underway to expand to new markets and further technological development to better suit the needs of its clients. The new investment will also allow fintech Flowpay to increase its capacity to provide personalized credit solutions tailored to the specific needs and capacities of each business.

In the meantime, the Flowpay team currently consists of approximately 15 experts, basically from the field of IT and Data Science, whose responsive competence in their respective fields facilitates smooth and efficient operations within the company. Determined to continue growing and further accelerate development, the subject company intends to expand its team of experts to a total of 20 members in the future.

“SMEs are the backbone of our economy. To be successful, they need financing to fund their growth. Most banks are not well set up to support them effectively, as processing relatively small loans is costly, and assessing risk based on outdated data poses a significant challenge for them. Because of these dynamics, many traditional lenders choose to focus on higher-value loans for larger companies, leaving the SME segment poorly served and economies performing sub-optimally.

Managing Director Techstars ‘Allard Luchsinger’ said, adding: “Flowpay is a prime example of a new generation of tech-driven companies that enable fast and cost-effective funding of smaller loans for the SME segment”.

Founder of the accelerator and fund Soulmates Ventures, ‘Hynek Sochor’, added: “Borrowing money and going into debt can be unsustainable. To address this challenge, Flowpay has introduced a key innovation for SMEs, which makes up an undeniably crucial segment of the economy. Flowpay shortens the time needed to evaluate credit applications to mere minutes, increases the accuracy of risk assessment, and speeds up access to finances for SMEs.

This approach represents a revolution in financing, support dynamic growth, and contributes to the sustainable prosperity of our economy”.

“For businesses, the loan application process is often prolonged and uncertain, which is a result of the bank sector’s slow progress in digitalization. ‘Michal Ciffra’ partner at DEPO Ventures, added: “Flowpay solves this problem by digitizing and automating processes using accurate data.

This data is available to the business by connecting to the company’s financial, accounting, and business systems, forming a technology bridge between the business, the financier, and possibly another party providing the data, such as a payment gateway or e-commerce platform. Flowpay is one of the pioneers of this embedded finance approach in the CEE region with a vision to become a global leader in providing financial solutions for sole traders and SMEs”.

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