finmid

finmid is a financial infrastructure provider that enables B2B software platforms and marketplaces to offer embedded financing solutions to their small and medium-sized business (SMB) customers. Founded in Berlin in 2021 by former N26 employees Max Schertel and Alexander Talkanitsa, the company aims to address the estimated €400 billion financing gap faced by SMEs in Europe. The founders recognized that traditional banking had become impersonal and inefficient for smaller businesses, which were increasingly operating on digital platforms.

finmid's core product is an API-based lending infrastructure that allows partners to integrate financial services directly into their ecosystems with a few lines of code. This enables platforms like Wolt, Glovo, and Safi to offer tailored capital and payment solutions, such as cash advances and flexible B2B payments, to their merchants. The company's technology handles the complexities of underwriting, risk management, and regulatory compliance, allowing its partners to launch financing products without significant development work or risk. By leveraging the real-time data and existing relationships of its partner platforms, finmid facilitates fast funding decisions, often within 24 hours.

The business model is designed to create new revenue streams for its B2B platform partners while improving customer retention and growth. For the end-user SMBs, such as restaurants or retailers, it provides seamless and quick access to capital to manage cash flow or invest in growth, directly through the platforms they use daily. For instance, its partnership with Wolt resulted in 'Wolt Capital', a cash advance feature for merchants, while its collaboration with the recycling marketplace Safi enables early payouts for sellers and extended payment terms for buyers.

Since its inception, finmid has undergone significant growth, securing €35 million in an early-stage equity funding round in April 2024, led by Blossom Capital with participation from existing investors like Earlybird VC and N26 founder Max Tayenthal. The company has expanded its operations to over 30 European countries, establishing itself as a key player in the embedded finance market with a focus on B2B solutions.

Keywords: embedded finance, lending infrastructure, B2B financing, API-based lending, SME lending, fintech, financial services API, business capital, platform financing, cash advance, B2B payments, merchant financing, revenue-based financing, working capital, credit solutions, digital lending, marketplace lending, financial infrastructure, Berlin fintech, European fintech