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Ex-N26 staffers raise €35m for embedded finance startup

Finmid, a German financial infrastructure provider targeting B2B marketplaces, has emerged from stealth with €35 million in early-stage equity funding.

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Ex-N26 staffers raise €35m for embedded finance startup

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Blossom Capital, Earlybird VC, and N26-founder Max Tayenthal joined the round for Berlin-based finmid, which was founded in 2021 by former N26 staffers.

Finmid argues that banking has become distant and impersonal, leaving small and medium business behind. It believes that B2B software platforms will fill the gap, with its help.

With a few line of code, these B2B platforms can offer their SME customers access to tailored financing support, using real-time data to made lending decisions that can be reached within hours.

Finmid has recently singed up Wolt, a tech company known for its local commerce platform that has launched a cash advance feature for its merchants.

Vincent Huang, CPO, Wolt, says: “Together with finmid, we’re able to provide easy and flexible access to additional financing - helping our partner develop their businesses, or have a safety net during tough times."

The latest funding will be used by finmid to expand to core markets, localise operations, and support more financing options for easier platform integration and a smoother user experience.

Max Schertel, co-founder, finmid, says: “At finmid, our mission is to help every business access the capital it needs. But our approach might surprise you. How do we bring back the relationships that made banking work for so long?

"With just a few lines of code, finmid enables any B2B software platform to offer financing to its customers, building on existing relationships with restaurants, retailers, and traders to fuel its business growth.”

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