Prague-based fintech startup Flowpay has raised 30 million euros from investment firm Fasanara Capital to scale its SME lending operations and solidify its position in embedded finance. With this new funding, the company plans to expand beyond its current markets in the Czech Republic, Slovakia, and the Netherlands, aiming to become one of Europe’s top embedded lending providers.
Flowpay was founded in 2021 by entrepreneur and finance expert William Jalloul with a clear mission—to bridge the funding gap for small and medium-sized enterprises (SMEs). These businesses form the backbone of the economy, yet many struggle to secure financing from traditional banks due to rigid lending criteria and outdated risk assessment models. Flowpay aims to change this by leveraging artificial intelligence and embedded finance solutions to make lending more accessible, efficient, and tailored to business needs.
The company’s approach stands out by eliminating cumbersome paperwork and manual approvals. Instead, Flowpay integrates directly with a client’s point-of-sale system or e-commerce platform, gathering real-time financial data to assess creditworthiness. This streamlined process enables fast loan approvals with terms customized to each business’s specific needs.
The funding from Fasanara Capital marks a significant milestone for Flowpay. According to CEO William Jalloul, this credit line will accelerate growth and help the company establish itself as a leading player in embedded lending across Europe. He sees this expansion as a stepping stone toward achieving unicorn status, a goal that reflects Flowpay’s ambition to reshape SME financing.
Fasanara Capital’s decision to back Flowpay aligns with its broader mission to address the multi-billion-euro funding gap faced by European SMEs. Many businesses are excluded from traditional banking services due to outdated scoring models and restrictive lending policies. By supporting fintech innovators like Flowpay, Fasanara aims to drive financial inclusion and empower small businesses with the capital they need to grow.
Beyond simplifying loan applications, Flowpay’s use of AI-powered risk assessment ensures businesses receive financing based on real-time performance rather than just historical credit data. This model offers a more accurate and dynamic approach to evaluating a company’s potential, allowing for faster approvals and better loan terms.
Embedded finance is a rapidly growing sector within fintech, enabling financial services to be seamlessly integrated into non-financial platforms. Flowpay capitalizes on this trend by embedding its lending solutions into digital environments where SMEs already operate. This means businesses can access funding directly from their existing financial or e-commerce platforms without navigating traditional banking channels.
Flowpay’s early success attracted the backing of prominent investors, including Techstars, Soulmates Ventures, and DEPO Ventures, along with angel investors such as Mark Ransford, Martin Herrmann, Kartik Varma, and Allard Luchsinger. These investors recognized Flowpay’s potential to transform SME financing by making capital more accessible through technology-driven solutions.
As Flowpay expands across Europe, its model could serve as a blueprint for the future of SME lending. By leveraging AI, real-time data, and embedded finance, the company is setting new standards in financial accessibility and efficiency. With the support of Fasanara Capital, Flowpay is well-positioned to bridge the financing gap for small businesses and drive innovation in the fintech space.
