Lyon-based Mon Petit Placement, a fintech company that claims to simplify the investment experience by making it accessible to everyone, announced on Tuesday, October 17, that it has secured €6.5M in a fresh round of funding. 

The company aims to become the key player in accessible savings in France (and beyond).

The investment came from Paris-based La France Mutualiste and Mon Petit Placement’s existing investors.

Isabelle Le Bot, general director of La France Mutualiste, says, “By collaborating with Mon Petit Placement, La France Mutualiste is integrating the fintech sector to offer a wider, younger and renewed audience savings offers accessible to all.”

“This defence of the power of savings for all has been at the heart of our mutualist mission since our creation 130 years ago,” adds Le Bot.

Brief about Mon Petit Placement

Founded in 2017 by Thomas Perret and Thibault Jaillon, Mon Petit Placement is a fintech company that simplifies the investment experience, catering to both novices and experts with its “user-friendly interface”. 

The platform offers education, personalised advice, and regular monitoring, providing substantial support to investors. 

With portfolios accessible from €300, individuals can choose from a range of options based on their risk tolerance, ensuring accessibility for all kinds of investors in France.

In 2023, Mon Petit Placement introduced four new investment options, including an anti-inflation portfolio (the first investment to combat the erosion of savings due to inflation), a solution for children, a “Serenity” portfolio, and a Retirement Offer through life insurance. 

These initiatives reflect the company’s commitment to diverse financial services and meeting the evolving needs of its customers.

Perret says, “During our previous fundraising, we set ourselves several objectives: continue to structure our teams, diversify our offering of financial products in order to become the leader in investment for individuals in France, exceed the €100M mark of assets under management and the threshold of 20,000 investor clients.”

“Today, we have 35 employees, four investment portfolios and seven thematic and responsible investments, with 25,000 clients to date, €115M in assets under management and a dynamic partnership strategy,” adds Perret.

Capital utilisation

Mon Petit Placement says that after securing the funds, the company aims for financial balance by 2025 and plans strategic initiatives in 2024, including branding, new offerings, and recruitment.

The funding also marks a merger with France Mutualiste, emphasising their shared goal of democratising investment and making financial opportunities accessible to a broader audience.

Partnership with La France Mutualiste

La France Mutualiste is an established mutual group founded by Léon Guillot over 130 years ago. With a focus on empowering all French citizens to build their retirement, La France Mutualiste boasts over 290,000 member-customers and manages €8.8B in assets. 

The organisation specialises in savings, retirement, insurance, and health solutions through its subsidiary Média Courtage, maintaining a network of 58 agencies across France. 

The group prioritises transparency, trust, and a family-oriented approach, fostering close relationships with its members.

Perret says, “We share a similar culture and missions with La France Mutualiste. This merger allows us to continue our development with the support of a solid partner.”

“We will be able to continue to enrich our offer in order to make savings truly accessible to all, that is to say by addressing a neglected target that no one wants to advise today but who wish to get started and be taken by the hand,” adds Perret.

Starting in 2024, Mon Petit Placement says it will distribute life insurance and retirement savings plan (PER) products from La France Mutualiste.

Simultaneously, La France Mutualiste will leverage Mon Petit Placement’s expertise in digitalisation, enhancing its digital channels.

UK-based payments network Zilch has launched Zilch Up, a new product designed to help people typically excluded from traditional credit in the U.K. access affordable credit and build credit history.

“For too long, millions of people in the U.K. have had to struggle with limited or no access to credit due to thin and weak files,” says Philip Belamant, CEO and co-founder of Zilch.

“We want to change this status quo by democratising access to interest-free and affordable credit, advancing the lives of millions of families and individuals in managing and planning their day-to-day financial health,” adds Belamant.

According to Belamant, recent testing shows that Zilch Up has the capabilities to help over 25,000 credit-invisible people become visible to credit reference agencies in the U.K.

Benefits of Zilch Up

Zilch Up offers affordable loans and credit score improvement.

Zilch Up offers customers credit limits of as little as £50 (€57.9) to £1000 (€1,158). Users can increase their credit limit easily with just a few steps on the app.

Zilch Up customers have the option to pause their line of credit and use Zilch as a debit card by selecting the Pay Now option. Additionally, they can switch to Credit mode within the app, allowing them to pay 50% of the total amount upfront and the remaining 50% over the course of six weeks.

Financial vulnerability

To boost their credit score while working with Zilch, users need to ensure that they make their payments on time, more consistently than they have done with other lenders. Another way to achieve this is by having no prior credit history and borrowing from lenders that do not report their history, typically high-cost lenders.

Although Zilch Up can help users build their credit score by partnering with the UK’s leading credit referencing agencies, missing payments can still negatively impact the credit score. Zilch encourages responsible spending depending on the individual’s financial capabilities.

To support their financial well-being, Zilch users will soon have access to credit coaching and be able to view their credit score in the Zilch app.

“We need to strengthen the protections for consumers and increase access to interest-free and affordable credit – particularly now when the cost of living continues to hurt,” says Belamant.

Multi-award winning fintech

Zilch is an award-winning payments network that aims to revolutionise the advertising and payments industries worth $50 trillion (€47.09T) by merging debit, credit, and savings. Its unique, vertically integrated, first-party data business model sets it apart from others in the fintech industry. Zilch is committed to providing its users with a seamless experience by leveraging its advanced technology and innovative payment solutions.

Zilch allows customers to use interest-free credit with BNPL (Buy Now, Pay Later) while benefiting from consumer protection.

Zilch was the first UK BNPL credit provider authorised by the Financial Conduct Authority (FCA). In 36 months since its launch in 2020, Zilch amassed more than 3.5 million registered customers.

With thousands of online stores on Zilch’s app, customers enjoy zero fees once they enable their card. As a Mastercard, it offers flexibility as it allows payments to be made at various locations, whether it’s online or in-store.

London-based fintech unicorn Revolut announced that it has reached an agreement with Softbank to streamline its ownership structure to remove a hurdle in obtaining a much-needed banking license in the UK market.

The announcement comes after months of negotiations, known internally as “Project Swan,” during which SoftBank had demanded substantial compensation in exchange for giving up its priority class of shares, report FT.

To secure a UK banking license, a key requirement set by the Bank of England has been the consolidation of Revolut’s six classes of shares, the legacy of multiple funding rounds since it was founded in 2015. 

The regulatory arm of the BoE holds authority over banking license approvals, which must also be signed off by the Financial Conduct Authority (FCA).

No additional shares

The agreement, struck last week, does not involve the issuance of additional “top-up” shares to SoftBank nor does it have a financial impact on Revolut, according to the report from FT. 

This comes despite SoftBank’s initial demand for a share amount potentially twice as large as common stock in exchange for giving up some of the preferential rights obtained during its leading role in a 2021 fundraising round, which made Revolut the UK’s most valuable private tech firm.

According to FT’s report, Tiger Global Management, TCV, Balderton Capital, and Ribbit Capital are either in the process of transferring their shares into one class or have already agreed to do so.

In July 2021, Revolut raised $800M (approx €677M) in its Series E round of funding led by SoftBank Vision Fund 2 with participation from other investors, including Tiger Global Management.

Without a licence, the payments group cannot offer a full suite of lending services nor offer customers the security of the UK’s deposit insurance scheme.

Revolut’s struggle remains

In 2021, Revolut obtained a full banking licence in Lithuania, but its largest market is still the UK.

According to FT, Revolut believes that obtaining approval for its licence from a major national regulator will give it the legitimacy it needs to expand in the US, Australia, and Singapore.

Although Revolut’s complex multi-tier share structure has been resolved, there are still other obstacles to overcome.

The company’s inability to produce timely and accurate financial accounts for its main corporate entity has been a persistent issue with both the BoE’s Prudential Regulation Authority and the FCA.

The fintech company was forced to issue qualified and late accounts for 2021 and admitted last month that their 2022 accounts would also be delayed. 

After regulators’ criticism, Revolut promised to submit its accounts without qualifications.

London-based SumUp, a global fintech platform, announced on  Thursday, September 21, that it has introduced a new feature called 7AM payouts in the UK.

Launched amid the ongoing cost-of-living crisis, the feature aims to accelerate fund access for merchants. 7AM payout is expected to aid cash flow management and expense handling.

“We have always made it easier for merchants to get paid – and what can simplify business more than releasing funds even faster than before,” says Michael Schrezenmaier, CEO Europe of SumUp. “SumUp merchants work hard for their money and we’re only too happy to have launched this category-leading 7AM payouts for SumUp One subscribers in the UK.” 

“Faster funds access is crucial for merchants amidst the UK’s cost of living crisis and in regular times, will give merchants more control over their money, aiding cash flow management,” Schrezenmaier adds.

A frequently requested feature

SumUp actively seeks input from merchants to improve its evolving product suite and simplify business for them. One of the most popularly requested features is faster payouts, which offer greater financial flexibility.

Previously, payouts took one to two business days to reach a merchant’s designated account. Starting now, SumUp One subscribers will receive their money made before midnight credited to their bank accounts by 7AM the next day.

The 7AM payouts feature is also available on weekends and holidays with no extra fees. SumUp’s 7AM payouts are the earliest available, giving merchants peace of mind about their funds before their morning coffee.

Exclusive to SumUp One subscribers

As of now, only SumUp One subscribers will be able to access 7AM payouts. Other than the newly added feature, merchants can access various other exclusive features by paying a monthly SumUp One subscription fee of €33.37.

These include reduced transaction fees (1.69 per cent to 0.99 per cent) and accelerated next-day business payouts (instead of the usual 1-2 days). There are also discounts on SumUp hardware, like 50 per cent off the SumUp Solo Card Reader, as well as unlimited invoicing.

Aside from cost efficiency, the company says SumUp One also enhances business operations by consolidating payment needs within a unified ecosystem. This simplifies reporting and cash management. SumUp One members automatically gain access to 7AM payouts at no additional cost.

More about SumUp

Founded in 2012, SumUp is a leading global financial technology company with a mission to empower small businesses. It serves as the financial partner for over 4 million small merchants in 36 markets worldwide. The fintech company assists them in initiating, operating, and expanding their businesses.

SumUp offers merchants a complimentary business account, a card, an online store, and an invoicing solution through its Super App. It integrates in-person and remote payments with SumUp’s card terminals and point-of-sale registers.

SumUp is dedicated to using its success to create a positive impact. It commits to donating 1 per cent of its revenue to support environmental causes and actively advocates for various educational and entrepreneurial projects worldwide.

Last August, SumUp revealed its partnership with Victory Park Capital, an alternative investment firm that specialises in private credit. The partnership led to the securing of approximately €91 million credit facility.

The fund is expected to help SumUp offer upfront payments to merchants in the UK, with future intentions to extend this service to various European markets.

London-based Curve, a financial super app, announced on Thursday that it has raised an £58M (approximately €67M) in a Series C extension round of funding, bringing its total Series C funding to over £133M. 

Britannia, IDC Ventures, Cercano Management, Cohen Circle, Outward VC, and many other existing shareholders participated in the extension round. 

Curve says it will use the funds to enhance the overall customer experience, expand its Flex offerings, and bring new partnerships to the market. 

To date, the UK fintech company has raised £208M in equity investment and reached millions of customers globally with its product and innovative partnerships with Samsung, Mastercard, Huawei, Swatch, and other leading brands.

“We are extremely pleased with the interest we received in our Series C extension round and the support we received from our existing shareholders,” says Shachar Bialick, founder and CEO of Curve. 

“It’s a testament to the execution of our team, the strength of our product, and the business as a whole. Like any raise, this last raise brings renewed responsibility to our shareholders and customers: To build a good product and an exciting business by executing well. Curve’s unique, user-friendly, and innovative product is something that investors, partners, and customers alike are drawn to naturally. With this additional cash, we look forward to bringing more people closer to financial independence,” adds Bialick. 

Curve: Financial super app 

Founded by Shachar Bialick in 2015, Curve is an over-the-top banking platform enabling customers to consolidate multiple cards into one smart card and app. 

The fintech company aims to simplify a consumer’s financial life by providing a one-stop shop for all their financial requirements. 

It is a single point of access to a wide range of financial products and services that come bundled together in one smart card and an app. 

Curve supports Mastercard, Visa, and Diners Club networks. 

The Curve Card and the E-money related to these cards is issued in the UK by Curve UK Limited, authorised and regulated by the Financial Conduct Authority. 

The UK firm is introducing its new Launchpad interface to facilitate the development of a financial marketplace. It will allow select third-party developers to integrate their financial products and services directly into Curve.

What the investors say

“Curve isn’t just aggregating funding sources into one credit card, they’re revolutionising how we perceive and access our money,” says Bobby Aitkenhead, co-founder and Managing Director at IDC Ventures. 

“Our conviction in Curve grew substantially upon witnessing its founder’s remarkable capabilities and proven history and the team he built around him,” adds Aitkenhead.

“We’re so excited about Curve and its potential to be a payments super app, as well as its ability to change how consumers treat their cards and credit as part of a holistic payment methodology. It continues to build and provide its users with great value,” says Daniel Cohen, co-founder of Cohen Circle.

Berlin-based Tilta, a fintech company, announced that it has procured a €30M debt facility from Fasanara Capital. The company aims to use the debt facility to address the working capital gap in B2B transactions.

With the debt facility, the fintech company says it is now capable of financing approximately €250M in business-to-business (B2B) transactions per year. 

Tilta looks forward to providing payment terms for buyers and immediate, risk-free payouts to sellers. 

“We are thrilled to partner with Fasanara to provide access to a previously inaccessible asset class of short-term, small ticket, and highly liquid B2B receivables,” says Tilta co-founder Christoph Nicola. 

Fasanara Capital CEO Francesco Filia says, “In today’s challenging macroeconomic environment, it’s essential that there are in-context financing solutions available that can support the transition of B2B transactions from offline to online and solve the inherent working capital gap”.

Filia says that Fasanara has been very impressed with the Tilta Team’s tech-driven white-label approach to embedded credit risk assessment and financing of business transactions and their progress. 

“We are happy to partner with them in closing the working capital gap for SMEs in online business transactions,” he adds. 

In May 2023, the company bagged €4M in its seed round.

The issue of working capital gap

The e-commerce industry has boosted the convenience of purchasing items through online marketplaces in recent years. 

However, the European €1.1T B2B market still lacks the necessary refinement to support such marketplaces. Businesses and clients still rely on telephone, fax, or meetings with sales representatives to conduct transactions. These practices result in unnecessary financial spending and wasted time.

Further exacerbating these issues are the rising interest rates and inflation. As a result, payment delays and longer payment terms become more frequent. 

Businesses’ operating cash flows also came under pressure, and European SMEs have their access to credit reduced by banks.

“With 1 in 4 businesses having to close because of liquidity constraints, the working capital gap remains the key challenge for SMEs in Europe,” Nicola says. 

Tilta to assist B2B marketplaces and SMEs

Tilta aims to solve this issue by using credit-backed payment infrastructure. The infrastructure allows B2B merchants and marketplaces to give in-context purchase financing to customers. 

Tilta’s white-label solution works via a single API integration to cover aspects related to a transaction. 

These aspects related to transaction processes include the proper regulatory framework, access to capital, seamless working technology, and risk hedging.

With the infrastructure, businesses ordering on the marketplace can have seamless and transparent individual lines of credit. The infrastructure gives the option to pay via instalments or after 30, 60, or 90 days. 

In turn, sellers on the marketplace receive their risk-free sales proceeds immediately.

Furthermore, the marketplaces enjoy a major addition in value for their customers. Marketplaces can also monetise a financial service as a new revenue stream to reduce their tight margins.

The European Fintech ecosystem, once characterised by rapid growth and abundant investment, has experienced significant shifts and challenges in 2023. 

To gauge and evaluate the European Fintech ecosystem, Finch Capital has come up with its 8th State of European FinTech Report. 

The 2023 edition of the report informs about a range of topics impacting the fintech industry, including where the sector is currently, the impact of the investment environment, and other trends. 

Here are the key takeaways:

Impacted by the new funding environment

The report reveals that in the first half of 2023, European Fintech companies raised €4.6B in capital, a staggering 70 per cent decrease from the €15.3B raised in the same period in 2022. 

Notably, the top 20 funding rounds, which once (in 2021 and 2022) accounted for 50 per cent of the market, now represent over 60 per cent of total deal volume, even as their sizes have shrunk. 

This has squeezed the long tail of deals outside the top 20 and companies in the Series A to C stages have felt the brunt of this transformation, adds the report.

According to the report, Payments, traditionally a resilient category, has experienced a surprising decline in investment, while the crypto sector has flourished. 

The report indicates that the UK has defied the trend, increasing its share of total funding to 50 per cent, up from 45 per cent, even as US-based investors have become less active.

The report further adds that US-based investors who were active in these markets have also taken a step back. 

For instance, in 2021, there were 3 US-based firms in the top 5 investors in the UK, while in 2023, there were none, reveals the report. 

Valuations in both public and private markets have retreated to 2019 levels after a period of extraordinary growth in 2020-2021. 

Later-stage valuations, in particular, have seen substantial drops of up to 50 per cent, while earlier-stage valuations have remained relatively stable. Encouragingly, valuations began to stabilise in the first half of 2023 after hitting their low point in December 2022.

There is hope for the ecosystem though, as valuations stabilised in the first six months of 2023  from their low in December 2022, adds the report. 

Exit market remains resilient

Despite the overall funding decline, the exit market remains relatively resilient with M&A activity only down by 5 per cent, reveals Finch Capital’s report.  

However, M&A transaction sizes have shrunk by 84 per cent, posing challenges for larger transactions.

Public markets have remained closed due to bottomed-out valuations, but there is hope that 2024 could bring new opportunities for Europe’s highest-valued companies to exit.

This is all against a backdrop of the M&A market seeing large outcomes decline considerably, with less than 19 per cent of all deals valued over $500M and venture funding with ‘megarounds’ in particular declining back to the 2019 level.

Fight for profitability

The fight for profitability became a central focus in the past year leading to more than 3,000 announced layoffs across the industry. 

Despite these challenges, the fintech sector continued to hire, particularly among the ten fastest-growing fintech companies, which collectively added 1,050 employees in the past year. 

It reflects a shift towards a more competitive landscape, with some companies prioritising junior positions while letting go of senior sales personnel.

Key European markets and B2B fintech

A review of key European countries showcased varying degrees of resilience in the face of the funding decline. The UK, in particular, stood out, accounting for over 50 per cent of the total funding in Europe.

Other regions, like the Nordics, Poland, and France, held up reasonably well due to significant crypto funding rounds. 

However, reliance on local early-stage investors became more pronounced, resulting in a lengthening of the time it takes to secure funding.

The Netherlands Fintech sector has experienced a paradoxical situation, with declining deals but rising capital. RegTech has taken the lead, driven by Fourthline’s boost. The Blockchain & 

Crypto sub-sector have also been active, representing 35 per cent of total deals.

Ireland’s Fintech market has seen seed deal activity dominate, creating a gap for growth-stage companies. The Lending sub sector has been the most active, accounting for 33 per cent of total deals. 

Germany’s Fintech industry has witnessed a decline in funding, particularly in the Lending subsector. However, mature firms have commanded the capital spotlight. The Crypto & Blockchain subsector has been the most active, representing 27 per cent of total deals. 

Funding in the French Fintech sector has also experienced a slowdown, but the Ledger and Crypto sub sectors have remained resilient. The Crypto & Blockchain subsector has been the most active, accounting for 29 per cent of total deals. 

Spain’s Fintech sector has witnessed a dip in funding, but deal size has increased. The Crypto and blockchain subsector has been the most active, representing 31 per cent of total deals.

The shift from consumer fintech to B2B fintech

A significant trend highlighted in the report is the continued shift from consumer-focused fintech to B2B solutions. Regulatory technology, driven by KYC and AML requirements, is  gaining momentum in the B2B sector. 

The report anticipates further growth in generative AI applications in retail banking and insurance, emphasising the growing importance of CFOs and the tools they use.

Commenting on the findings Radboud Vlaar, Managing Partner at Finch Capital, says, “Since mid-2022 we have seen an increase in investment discipline in public and private markets, resulting in less funding, lay-offs, less IPOs, flight to quality and focus on capital efficiency. This will continue to be painful for the next 12 months, but will result in a more healthy and sustainable Start-up, Hiring, and Investor ecosystem. ”

“With investors bridging overvalued portfolio startups to bring them to profitability and struggling to find attractive exits in a grossly devalued market, we are likely to see a period of consolidation in the fintech space as many verticals are highly fragmented, creating a smaller but more sustainable ecosystem. We should also start to see a slow recovery of the IPO market in the next semester as valuations have started to slowly pick up and inflation is declining,” he continues. 

“Last year’s shake-up with valuations coming down, fundraising slowing down and the exit window closing up, was painful yet necessary. Consolidation and more competitive investment flows, combined with still significant levels of undeployed capital, will bring maturity to the fintech sector. This new normal level of activity demonstrates the refocus of the fintech ecosystem on long-term sustainability versus short-term gains,” concludes Vlaar.

Amsterdam-based Sprinque, a flexible payments platform for local and cross-border B2B transactions, announced on Tuesday that it has expanded its operation to Germany and Spain with offices in Berlin and Madrid.

The Dutch company has appointed veterans of the FinTech and BNPL industry, Mikko Riikkinen and Jaime de Wenetz, as Country Managers. 

The announcement comes three months after securing a €20M debt facility from Avellinia Capital, enabling them to finance approximately €200M in transactions annually. 

The expansion strategy aims to strengthen an alternative financing model, which can reduce delays, increase companies’ liquidity, manage payments, and conduct international transactions while providing buyers with the best B2B payment experience.

Juan Espinosa, Co-founder and CEO of Sprinque, says “Sprinque’s mission is to enable merchants to use credit and payments as a strategic tool to build a thriving, cross-border business. The challenge ahead is enormous. B2B commerce, payments, and credit have seen little innovation over the last century.” 

Sprinque: Flexible B2B payment platform

Sprinque was founded by Manoj Tutika (CTO), Mark Holleman (CPO), and Juan Espinosa (CEO) in February 2021. 

The Dutch company offers a platform for sellers to integrate their solutions using APIs, as well as e-commerce plugins such as Magento, Prestashop, and WooCommerce. They can also use Sprinque’s services for transactions that originate through offline sales channels. 

When a buyer selects the pay-by-invoice option, the company performs an instant fraud and credit risk assessment with an approval rate of over 95 per cent 

Once approved, a revolving credit line is issued, which buyers can use for multiple purchases. Sprinque takes ownership of all default and fraud risks for approved buyers and provides sellers with the flexibility to choose when they receive their funds for transactions. 

The company’s Pay-by-Invoice solution aims to help businesses mitigate economic pressures through dynamic settlements. 

The debt facility offers more liquidity to current and future B2B merchants who sell on Pay-by-Invoice with net payment terms of 7, 15, 30, 45, 60, or 90 days, as well as alternative options for Pay-in-Instalments.

Currently, Sprinque has 30 employees in Amsterdam, Berlin and Madrid.

Christoph Pfundstein, Partner at Avellinia Capital, says, “The B2B commerce sector is becoming more digitised. Yet, it fails to offer business clients flexible and convenient payment options, which dampens the possibility of international transactions and growth. Avellinia Capital believes that Sprinque will become a leading B2B provider in the payment sector and is proud to accompany them on their journey.” 

LHV Bank, which acquired a UK banking licence in May, announced on Thursday that it is partnering with Estonian SaaS provider Tuum to roll out a new loan system for its SME Lending business. Erki Kilu, CEO of LHV Bank, says, 

“This integration with Tuum is a key step in our continuous effort to provide a framework that enables our SME Lending business to develop a wide range of new products quickly, allowing us to swiftly adapt to changing market demands.”

According to LHV Bank, the move improves resource allocation and simplifies lending architecture. It will allow the bank to roll out new products quickly to adapt to changing market demands. Furthermore, it creates a resilient, future-proof framework that will help the bank avoid legacy system challenges.

LHV Bank’s lending business provides commercial property and trading loans of up to £5M (€5.8M) to small and medium enterprises in the UK. Predominantly operating in Manchester, it aims to fuel economic growth in underdeveloped business hubs.

LHV Bank launches new core banking system

In August, LHV Bank launched an updated core banking system for its Bank Services division, which serves 200 fintechs worldwide. The new system ensures more efficient GBP payments, enhancing reliability and scalability for the bank’s client base in the UK.

“When building this system, we chose to collaborate more extensively with external value-adding service providers, transitioning all systems to cloud solutions and enhancing in-house agile software processes,” says Kilu.

The current change involves moving the bank’s customers to Tuum’s platform. Tuum CEO Myles Bertrand asserts that LHV Bank’s transition to the service provider’s cloud-based system further strengthens their partnership and will benefit clients.

“Clients that operate multiple business lines from our system see the best returns and reduced cost of ownership,” Bertrand remarks. 

Besides collaborating with Tuum to expand its Banking Services business line, LHV Bank partners with Salesforce for customer management and Salv for payment monitoring. 

Last week, LHV Bank also announced a partnership with online saving platform Raisin UK. It is the bank’s first step in its plan to launch direct-to-customer savings product offerings next year.

Tuum helps banking firms avoid legacy problems

Estonia-based SaaS firm Tuum provides banking solutions for financial institutions across Europe and the UK. 

Tuum says that many financial firms rely on their legacy systems, making it challenging to adapt to the rapidly changing market. 

It offers several solutions for these firms to transform and scale their businesses. Tuum offers modules for core banking, lending, cards, and payments, the four critical functions in banking services. 

Tuum’s core banking module streamlines the management of accounts, transactions, deposits, and pricing. Its lending module accommodates the loan management process, from application to contract. 

The card module facilitates the issuance of debit and credit cards. Banking firms use Tuum’s payment module to initiate and validate payments based on their preferred payment formation rules.

About LHV bank

LHV Bank is a child company of Estonia-based LHV Group, a publicly traded financial firm specialising in financial services. 

Established in 2012, it began servicing fintech clients in Estonia. LHV Bank then entered the UK market in 2018 by opening a London office.

Dublin-based Wayflyer, a unicorn that provides revenue-based financing and growth platform for e-commerce businesses, announced that it has secured $1B (nearly €931.76M) in funding from New York-based Neuberger Berman, an investment management firm.

Wayflyer has described the funding as an “off-balance sheet programme”, allowing the company to exclude certain assets and liabilities from its official balance sheet reporting.

This approach has likely helped Wayflyer maintain a lower debt-to-equity ratio, especially as it had previously secured substantial credit to support its loans to e-commerce startups.

Wayflyer co-founder & CEO, Aidan Corbett says, “As e-commerce businesses seek to navigate growth amid the current economic conditions, we’re seeing a growing demand for our reliable funding solutions, especially in the US market.”

“This $1B off-balance sheet purchase of assets from Neuberger Berman demonstrates the power, success and resilience of our proposition and will provide the capital firepower for us to ensure our e-commerce customers can continue to thrive in any economic conditions.”

Wayflyer, despite not being profitable at the moment, says it will use the money to sustain and further drive the company’s growth, with a focus on expanding its operations in the US.

Funding and insights for e-commerce businesses

Founded in 2019 by Aidan Corbett and Jack Pierse, Wayflyer helps e-commerce businesses grow by providing a range of financing and analytics solutions that improve cash flow, drive sales and optimise supply chains.

The company’s customers commonly secure loans in the range of $300K to $400K. These loans are primarily utilised to cover essential expenses in e-commerce operations, including inventory purchases, shipping costs, and other critical business needs.

The Irish firm uses a variety of data sources, including Shopify, WooCommerce, TrustPilot reviews, Google Analytics, and shipping service performance data, to inform its loan decisions and predict potential financing issues for e-commerce merchants. 

This data-driven approach allows Wayflyer to make informed lending decisions and better support its clients in managing their finances.

Recently raised capital

Wayflyer has secured significant funding in 2022. In February, the company became Ireland’s sixth unicorn by raising $150M in a Series B round, at a post-money valuation of $1.6B. The money was used to expand in the US, across Europe, and into Asia, and to grow its workforce.

In May 2022, Wayflyer again announced a $300M debt line renewal from JP Morgan, with Neuberger Bermann acting as a mezzanine provider.

In September 2022, the fintech secured $200M in debt and $53M in mezzanine financing from Credit Suisse to develop its platform and provide funding to e-commerce businesses.