European FinTech deals this week include Banxware and Global Processing Service
7 Questions with Hussam EL-Sheikh, 9fin
1.Tell us a bit about yourself, your background and leisure.
Hey I’m Huss, CTO & Co-founder of 9fin. I think I’d describe myself as an engineer in every sense of the word. So, via a degree in Aerospace Engineering, taking apart my siblings’ toys as a child, learning programming at school from age 12, I find myself now running a technology startup serving up news, data and analysis to the financial markets. I love Formula 1, and it’s been a very stressful (but exciting) 2021 championship this year. I’m trying to get better at badminton after taking it up for the first time a couple of years ago… At least my height lets me get away with not being any good yet!
7 Questions with Karim Rabbani of RGAX
1.Please tell us a bit about yourself, both at work and leisure.
I’m a Senior Analyst in the Ventures & Acquisitions team of RGAX, based out of Amsterdam. RGAX is the transformation engine of RGA, promoting and accelerating innovation within the Life and Health insurance sectors by means of organic and inorganic initiatives. RGA is one of the largest global life and health reinsurance companies.
I joined the organization in 2018 to support the EMEA region on deal sourcing activities, executing partnerships and managing our portfolio of 30+ startups globally.
Prior to joining RGAX I worked in Corporate Banking at ABN AMRO and in Port Logistics at the Port of Rotterdam. I hold a Master Degree in Business Management from Cass Business School in London and a Corporate Communication’s Master from the University of Amsterdam.
Personally, I enjoy travelling and experiencing new cultures. I’m also a sports fan and play soccer and squash. In addition, I volunteer for a foundation that promotes dialogue and understanding between the Arab World and Europe through education.
Embedded finance fintech Banxware raises EUR 10 million in seed expansion round
Germany-based embedded finance fintech Banxware has announced raising EUR 10 million in a seed expansion round led by Element Ventures.
Co-investors included D4 Ventures, FinVC, and Varengold Bank AG and Banxware’s existing investors Force over Mass, VR Ventures and HTGF significantly increased their investments in this round. In February 2021, the company already collected EUR 4 million and the leading investors at the time were UK-based venture capitalist Force over Mass and VR Ventures.
Banxware sees itself as a lending-as-a-service provider and its solution enables digital platforms as well as marketplaces and payment service providers to offer their business customers embedded financing products in real-time. The United Volksbank Raiffeisenbank is the first bank partner to provide a total of EUR 100 million in credit for SMEs. According to a Banxware representative, the capital injection will be used to further develop the offer, enlarge the team and expand product development, sales and marketing to digital platforms across Europe.
Founded in 2019, Element Ventures has backed some of the best founders and companies in the industry over the last decade and had the privilege of investing with the world’s leading financial services and venture firms.
Global Processing Services adds $100 million to the pile, closes round at $400 million
London-based Global Processing Services has announced an additional $100 million raise, adding on to an already impressive $300 million round. The funding is slated to be used in further R&D projects as the company aims to remain at the forefront of powering some of the world’s leading fintechs that include Revolut, Curve, Starling Bank, Zilch, WeLab Bank, and Paidy. Since 2018 GPS has raised a total of $458 million.
Providing a host of underpinning services including virtual cards, mobile wallet solutions, real-time transaction data, chargeback facilitation, and the list goes on and on, GPS might not be a household name, but chances are you’ve indirectly used one of their products within the past few years.
In so much, through its customers and partners, the company is active in 48 countries and has issued over 190 million physical and virtual cards, and last year processed more than 1.3 billion transactions.
Adding on to an impressive track record, GPS has also scored a win in the recent appointment of Gene Lockhart as chair of the GPS board. Lockhart, chair and general partner at investor MissionOG will be able to provide valuable insight to the company as he formerly served as CEO and president at Mastercard International and president of the global retail bank at Bank of America.
Incorporated in 1974, Temasek is an investment company headquartered in Singapore. Supported by 13 offices internationally, Temasek owns a net portfolio value of S$381 billion (US$283 billion) as at 31 March 2021. Their portfolio covers a broad spectrum of sectors, including: financial services; telecommunications, media & technology; transportation & industrials; consumer & real estate; life sciences & agribusiness; as well as energy & resources.
Headquartered in Pennsylvania, MissionOG partners with high-growth businesses that have proven models in segments where we have had success as operators and investors, including financial services and payments, data platforms, and software.
Levenue acquires Amsterdam-based fintech company Requr to consolidate its position in RBF market
Levenue, a revenue-based finance marketplace, announced that it has acquired Amsterdam-based fintech company Requr for an undisclosed fee. With this move, Levenue aims to capitalise on the growing popularity of Revenue-Based-Financing (RBF).
For the uninitiated, RBF is a way to raise funds based on the company’s revenues. Companies that opt for RBF will have to pledge a part of their annual revenue in exchange for capital. In this case, founders do not have to give up equity or collateral.
Levenue says the acquisition of Requr has consolidated its position as the “one-stop go-to funding solution” for all European subscription-based businesses.
Requr’s founders have emphasised that they believe their data flow, underwriting, and data analysis model will work well with Levenue’s technological capabilities, international team, marketing strategy, and experience.
The acquisition follows Levenue’s expansion into the Nordics after successful launches in the Benelux and the UK.
Tandem Bank Acquires Manchester based Oplo, a Consumer Lending Platform
Tandem Bank has reportedly acquired consumer lending platform Oplo.
The strategic acquisition has formed a combined business with £1.2 billion of total assets, £1 billion of funding and 171,000 clients being serviced by a UK-headquartered team of 500 professionals.
Tandem was established back in 2014 as one of the United Kingdom’s first digital banking challengers. Over the years, the firm has undergone several key changes in order to establish a profitable business model. The firm acquired Harrods Bank back in 2018, closing down its credit card business in 2020 and repositioning itself as a “green” lender with the acquisition of Allium Lending Group a few years back.
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