Finway Raises $10M to Help Businesses Digitize Finances

Germany’s Finway has raised $10 million to help small businesses digitize their finances.

The company announced the Series A funding on its blog Thursday (Feb. 23), saying it would use it to develop its spend management and budgeting software for Europe’s small to medium-sized businesses (SMBs), most of which haven’t fully digitized their finances.

“Spending and cost control have become central factors in every finance department,” the company said in its blog post. “The demand for automated solutions that rationalize outdated accounting practices and provide insight into real time financial data has never been more prevalent.”

The company, which offers a centralized platform that handles invoicing and accounting workflows along with spend and travel expense management, said the funding round was led by Capital 49, an early-stage venture capital fund run by the founders of Airwallex.

“It’s no secret that technology is reshaping the future of money and banking, and finway is rising to the challenge by building a solution that automates financial processes and increases efficiency for SMBs,” Jack Zhang, Airwallex/Capital 49 co-founder, said in the announcement.

Research by PYMNTS has found that more than half of SMBs view an all-in-one payment platform as a way to simplify financial management.

According to “The Future of Business Payables Innovation: How New B2B Payment Options Can Transform the SMB Back Office,” a PYMNTS and Plastiq collaboration, 59% of small businesses say an all-in-one payment solution will save them time immediately.

Another 52% of SMBs said they would find it easier to manage cash flows, while 41% believe it would simplify receivables tracking.

The SMBs PYMNTS surveyed said a single payment solution for all B2B transactions would offer more visibility over cash flows and better AP/AR tracking, crucial for financial strategies.

That visibility is also crucial for supplier relationships: Businesses that rely on a network of suppliers or vendors require fast, frictionless payments to avoid costly delays.

Meanwhile, as consumer spending slips, some SMBs may consider turning to other options, such as investing in cost-cutting technologies like automation platforms. However, further PYMNTS’ research shows that Main Street SMB interest in these innovations varies from sector to sector.

These businesses, which typically operate on tighter margins, are in an especially tight spot as they seek cost-cutting strategies that won’t drive customers and clients away.

“Sectors that have so far lagged or been resistant to modernizing any part of their business systems may want to consider some level of innovation investment and adoption as part of their long-term growth strategy,” PYMNTS wrote. “While most firms likely already use some digital channels for their processes, there are other areas SMBs — and not just SMB retailers — may automate and see possible revenue-saving results.”

For all PYMNTS EMEA coverage, subscribe to the daily EMEA Newsletter.