4Trans, a Czech FinTech specializing in financial productions for supply chain and transportation companies, has raised 18 million euros ($18.8 million) in new funding.
As Tech Funding News reported Wednesday (June 29), the funding came from investors that included Atmos, Tera Ventures and Lighthouse, along with a revolving credit facility care of Advance Global Capital.
4Trans said will use the capital to boost its domestic operations, expand into Poland, hire more workers and develop its platform.
The funding follows a period of expansion for the company, which saw its customer base increase to 500 and monthly income leap tenfold as clients dealt with supply chain troubles.
“The supply chain crisis alongside political and economic uncertainty has led to a huge increase in delays to invoices being paid. This has put considerable financial pressure on Europe’s small and medium-sized haulers,” said Jaroslav Ton, founder and CEO of 4Trans.
“Unfortunately, most traditional financial institutions simply do not cater to this group and those that do take too long to provide financing or require very large invoices. We’ve created a range of solutions that give the small and independent entrepreneurs within the European supply chain the protection they need and deserve,” he said.
Founded in Prague in 2018, 4Trans provides financing to SMEs and other logistics firms through factoring. The company has supplied more than 30 million euros ($31.4 million) in financing, preserving revenue from more than 50,000 invoices.
Read more: Soaring Logistics Costs Threaten Main Street Business Profits, Optimism
As PYMNTS reported last week, getting goods to where they need to be has become a significant threat to small business profits.
A report released recently by the trade group, the Council of Supply Chain Management Professionals showed that supply chain costs skyrocketed by 22.4% last year, to $1.9 trillion, a figure that equates to 8% of U.S. GDP.
As our “2022 State of Logistics Report” noted, those costs include everything from storing goods to financing them.
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