Embedded finance startup Weavr raised $40 million in a Series A funding round led by Tiger Global, with participation from Mubadala Capital, Latitude Fund, QED Investors, Anthemis and Seedcamp.
The London startup is aiming to disrupt the banking-as-a-service (BaaS) model by extending financial services to any online business. The current BaaS model comes with a high price tag due to compliance, technical aspects and implementation, according to a press release on Tuesday (Feb. 22).
The fresh infusion of capital will be used to help Weavr continue its global expansion strategy, with plans on the table to officially roll out in the U.S. The new funding is the startup’s third round in the past 18 months, bringing its total fundraising to $55 million.
“We believe an increasingly digital world works better when financial services are provided seamlessly within digital applications. Plug-and-Play Finance is the fastest, easiest and most efficient way for businesses to accomplish this,” Alex Mifsud, co-founder and CEO of Weavr, said.
“This level of simplicity makes it possible for rapidly digitizing sectors such as health, education, logistics, HR-management and real estate to effortlessly incorporate sophisticated finance offerings in their existing properties,” he said.
Mifsud pointed to Uber, Amazon and other early industry disruptors as having had no other options when integrating finance but to develop “from the ground up in what was a costly, complex and time-consuming process.” Weavr cuts the launch time to weeks or days compared to months or years.
Weavr’s Plug-and-Play Finance preconfigures APIs into embedded finance solutions that clients can use without worrying about back-end technology. This differs from most BaaS offerings, which extend a variety of APIs that require high tech demands.
Photo Courtesy: Silicon Canals, New York Tech Media
Source: PYMNTS
