European financial services firm finmid has recently announced its strategic expansion into eight additional European countries. This move significantly broadens the company's reach, enabling it to provide scalable and efficient cross-border financing solutions for small and medium-sized enterprises (SMEs). Founded in Berlin in 2021 by Max Schertel and Alexander Talkanitsa, finmid has raised €35 million from leading investors. The company aims to bridge the €400 billion funding gap faced by European SMEs by offering a platform-powered financing network that integrates seamlessly with B2B platforms like Wolt and Glovo. This expansion marks a significant milestone in finmid's mission to enhance access to capital for businesses across Central, Southern, and Eastern Europe.
The new markets include Austria, Cyprus, Czechia, Greece, Italy, Latvia, Lithuania, and Slovenia, bringing finmid's total presence to 20 European countries. The company's innovative approach allows B2B platforms to offer personalized financing options to SMEs, addressing the historical limitations in these regions. By embedding fast and flexible capital access directly into digital platforms, finmid empowers businesses to thrive in an increasingly competitive landscape. The founders believe this will drive economic growth and improve operational efficiency for SMEs.
One of the key challenges in expanding into diverse European markets is navigating the complex regulatory environments. Finmid's expertise in compliance ensures that B2B platforms can focus on their core business while providing seamless financing solutions for SMEs. The company's modular and customizable infrastructure enables platforms to offer branded financing options, with pre-approved credit lines based on sales history. This flexibility fosters loyalty and opens new revenue streams for platforms, as evidenced by a reported 39% increase in gross merchandise value and a 70% reduction in customer churn.
Finmid's co-founders emphasize the importance of addressing the underserved regions of Europe. While many financing providers concentrate on Western Europe, finmid identifies the untapped potential in Central, Southern, and Eastern Europe. By positioning itself as a go-to partner for SME financing across the continent, finmid aims to revolutionize how businesses access capital. The company's success in overcoming regulatory hurdles and delivering tailored financing solutions positions it as a leader in the embedded finance sector.
The expansion into these new markets underscores finmid's commitment to fostering economic growth and improving access to capital for SMEs. With its innovative platform and strong financial backing, finmid is well-positioned to make a lasting impact on the European financial landscape. The company's ability to integrate financing solutions into existing B2B platforms not only benefits SMEs but also enhances the overall ecosystem, driving greater efficiency and innovation across industries.