Prague-based FinTech startup Flowpay has secured €30 million from investment manager Fasanara Capital to provide working capital financing for SMEs and become a notable player in the world of embedded finance.
Flowpay was originally backed by Techstars, a leading pre-Seed investor, alongside rising Czech VCs like Soulmates Ventures and DEPO Ventures, and key angel investors such as Mark Ransford, Martin Herrmann, Kartik Varma, Allard Luchsinger, and others.
“This new line of credit from Fasanara Capital allows us to become one of the leading embedded lending solutions in Europe. We can grow beyond the Czech Republic, Slovakia, and the Netherlands at an accelerated pace. We have the ambition to become the next Czech unicorn,” says William Jalloul, CEO and Founder of Flowpay.
The company was founded by serial entrepreneur, investor, and finance expert William Jalloul, who started the company in 2021 with the idea to support SMEs that are the “heart of the economy” but don’t have access to funding from traditional institutions.
Flowpay has developed an innovative way to assess not only the risk but more importantly the potential of SMEs on the basis of which it provides operational funding for their growth.
Using AI, Flowpay automates the entire process from funding applications to risk scoring and evaluation. By leveraging embedded finance, it enables clients to use these services where they feel most comfortable, through platforms they use every day, making the otherwise tedious process easier.
According to Flowpay, unlike banks, they do not require clients to fill in unnecessary paperwork. Instead, Flowpay connects to their point-of-sales systems or e-commerce platforms. Based on this data, it evaluates the availability of financing and offers each client a customised loan to fit their needs.
“Using the latest technology to make it easier and faster for SMEs to apply for working capital, Flowpay has developed what we believe can be a market leading embedded lending proposition. We believe that the future of financial markets depends on the adoption of modern technology to effectively provide access to funding to smaller players who are increasingly being left behind by banks. The partnership with Flowpay aligns directly with Fasanara’s mission to bridge the multi-billion-euro funding gap faced by European SMEs – especially those excluded by outdated scoring models and lacking the capital to grow optimally,“ says Matt Kus, Partner and Head of Origination at Fasanara Capital.
In addition to facilitating access to capital, Flowpay also offers businesses fast application evaluation and a tailored approach. The use of AI and data models enables efficient processing of applications without the need for complex administration, reducing the time between application and funding.
Read the orginal article: https://www.eu-startups.com/2025/03/flowpay-raises-e30-million-to-lend-to-smes-and-innovate-embedded-finance/
