European financial services infrastructure provider finmid has announced its expansion into eight new European markets. According to a press release, the move marks a milestone in the company's mission to provide scalable, compliant, and efficient cross-border financing solutions.
The company provides a platform-powered financing network, enabling software platforms to become personalised and convenient points of finance for SMEs
The expansion into Austria, Cyprus, Czechia, Greece, Italy, Latvia, Lithuania, and Slovenia extends finmid's footprint to 20 European countries, granting B2B platforms like Wolt and Glovo the broadest geographical coverage for merchant financing in the region. Previously, finmid's services were available in Belgium, Denmark, Finland, Germany, Luxembourg, the Netherlands, Poland, Portugal, Slovakia, Spain, Sweden, and the UK.
Founded in 2021 and headquartered in Berlin, Germany, finmid has raised €35 million in funding from Blossom Capital, Earlybird VC, and N26-founder Max Tayenthal.
Europe's SMEs face a €400bn funding gap, despite contributing nearly 60% of the continent's gross value added and employing over 90 million people. Founded in 2021 by Max Schertel and Alexander Talkanitsa, finmid aims to bridge this gap by offering modular and customisable financing infrastructure. This enables B2B platforms to provide SMEs with fast, flexible access to capital, particularly in Central, Southern, and Eastern Europe, where financing options have historically been limited.
"SMEs drive the global economy, yet accessing capital remains slow and outdated. SMEs increasingly rely on digital platforms to operate -- from e-commerce to point-of-sale systems. Finmid empowers these platforms to embed fast, personalised financing directly into their systems, creating a seamless network for SME finance," said Max Schertel, Co-Founder of finmid.
Finmid's solution allows B2B platforms to offer branded financing options, enabling SMEs to access funding of up to €3 million through pre-approved credit lines based on sales history. Repayments are flexible and linked to daily sales, offering liquidity that fosters platform loyalty and opens new revenue streams for platforms. The company reports that its financing solution has led to a 39% increase in gross merchandise value (GMV) and a 70% reduction in customer churn for platforms, with a Net Promoter Score exceeding 80.
Expanding into diverse European markets requires navigating complex regulatory environments. Finmid's expertise in compliance enables platforms to focus on their core businesses while providing seamless financing solutions for SMEs.