UniCredit, a notable European banking giant, has recently made a strategic investment in Banxware, a Berlin-based FinTech company specialising in embedded lending solutions. This move marks the first investment under the aegis of UniCredit’s newly established UCG Strategic Investment Team.
This latest equity round for Banxware is significant, not just for the financial injection, but also for the strategic partnership it heralds with UniCredit. The partnership aims to broaden UniCredit’s lending offerings to its current business clientele while also opening doors to a new customer base, particularly in the German market and potentially beyond.
Banxware operates as a pivotal player in the FinTech sector, currently enabling 30 platforms across Germany and the Netherlands to offer financing to business customers. This service is crucial for the long-tail SME market, which has traditionally been underserved in terms of financing options. Banxware’s partnerships include notable platforms like Worldline (Payone), JustEat Takeaway (Lieferando), Qonto, SumUp, and Agicap. The company’s model allows business customers to obtain financing seamlessly, integrating financial services directly into the platforms where they manage their business activities.
UniCredit’s investment in Banxware aligns with its broader ‘UniCredit Unlocked’ objectives. This strategy focuses on direct investments in companies that can expedite UniCredit’s transformation journey. By partnering with firms that leverage state-of-the-art technology, UniCredit aims to enhance its digital capabilities, deploy innovative business models, and accelerate its achievement of various targets. These partnerships are expected to improve internal practices, attract new clients, and better serve existing ones.
The transaction was managed by UniCredit’s new Strategic Investment Team, a segment of Group Strategy & ESG. This team is tasked with exploring and managing investment opportunities that align with the Group’s strategic goals.
In a statement, Fiona Melrose, Head of Group Strategy & ESG at UniCredit, emphasized the significance of this investment. She said: “This investment underlines our ambition to further enhance the Group’s technological and digital drive to the benefit of our customers. With Banxware’s financing solutions we can broaden our lending proposition and complement our existing offering for SME clients, also gaining access to a new customer base. Partnerships of this kind, that could be extended to other geographies, always offer opportunities to exchange ideas, learn from each other and jointly develop new areas of business.”
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