London-based investment company to inject €30m in funding for Czech fintech startup
Czech fintech startup Flowpay has scored a significant success. The London-based investment company Fasanara Capital will provide it with an injection of EUR 30 million (approximately CZK 755 million). The startup specialises in lending to smaller companies that often would not have a chance of getting funding from traditional banks.
A new approach to evaluating entrepreneurs
While conventional banks assess loan applications primarily on the basis of tax returns, Flowpay uses modern technology to get a more accurate picture of entrepreneurs’ financial situation. Instead of static data, it works with data on bank account movements, inventory and actual sales, which it gets directly from e-commerce platforms or POS systems. Credit risk assessment is performed by artificial intelligence, allowing for faster and more objective decision-making.
Millions for growth and expansion
Flowpay was founded four years ago by entrepreneur William Jalloul and now his company is heading to other markets. Our goal is to become the next Czech unicorn,” said Jalloul, who serves as CEO of the startup.
So far, Flowpay has made several hundred loans worth half a billion crowns. By the end of the year, it plans to reach the mark of two billion crowns in funded loans.
The future of small business financing
According to Matt Kus, partner at Fasanara Capital, investing in Flowpay is a logical step towards the future of the financial sector. “We believe that modern technology can fundamentally streamline access to finance for smaller businesses, as it is still often overlooked by traditional banks,” said Kus.
With the new capital, Flowpay can not only support more Czech entrepreneurs, but also expand into other European markets and change the way small businesses are financed.
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