Spanish FinTech company Fence has reportedly raised 1.8 million euros (about $2 million) in its pre-seed financing round.
The firm will use the new funding to grow its software that automates and optimizes debt operations for asset financing, EU-Startups reported Monday (Nov. 20).
Fence did not immediately reply to PYMNTS’ request for comment.
One of the key features of Fence’s offering in the debt management space is the use of blockchain smart contracts to automate capital and asset transfers, ensuring compliance with specific clauses of credit agreements, according to the report. This integration of debt into their technological stack allows companies to automate debt management, a crucial aspect in an increasingly digitalized world.
Fence’s innovative solution comes in the form of a Software-as-a-Service (SaaS) platform, which provides real-time updated information on debt to investors, the report said. Companies that utilize Fence’s platform can save up to 80% of the usual costs associated with debt operations, thanks to the automation of processes, payments and reporting to investors.
Current users of the solution have praised the impact of Fence’s technology on debt management, the report said.
Benoit Menardo, co-founder of Payflow, highlighted the value provided by blockchain through Fence’s platform, per the report. Payflow was able to save more than 25% in interest by accessing debt on demand. Furthermore, the automation of reconciliation allowed the firm to meet information and payment schedule requirements for investors without expanding its team.
With the successful pre-seed financing round, Fence plans to further invest in development and technology, according to the report. The company aims to expand its operations to serve more financial institutions and FinTechs throughout Europe. To support its global expansion plans, Fence will double its team based in Madrid by the end of the year.