Factris, an Amsterdam-based fintech startup that provides online working capital solutions to European SMEs, has announced closing of a €5 million (~$6Mn) Series A round. The round was led by AB Ventures, the corporate investment capital arm of the Arab Bank. Existing investors taking part in the round include European venture capital fund Speedinvest, Optima investments, along with other high net worth investors.
Factris provides low-cost working capital to small and medium-sized enterprises utilizing its proprietary FAB technology platform, and is currently at various stages of bringing in other factoring companies to become Factris brokers or partners. The idea is to create a network of partners, which will help Factric amplify its impact across the European SME community.
The company hopes that the “additional equity brought in, paired with the reach received through networking and partnering”, will create more opportunities for Factris to finance SMEs during these challenging economic conditions brought in by the COVID 19 global pandemic.
Factoring, is the startup’s primary form of financing, and enables the company to help customers by providing working capital using their own unpaid invoices. This alternate method of financing is deemed to be quicker and more efficient in delivering working capital to businesses, compared to traditional bank loans.
CEO of the company, Brian Reaves has laid emphasis on the importance of partnering in these chaotic times, which would enable his company to fulfill its goal of providing financial help to SMEs either directly or through its partners.
In a statement released by Factris, Reaves has expressed his company’s delight in partnering with AB Ventures, saying, “Factris is happy to be working with AB Ventures and is looking forward to providing financing services in partnership with them in selected markets.”
The comment from the CEO was matched by the MD of AB Ventures, Faisal Hakki, who said, “AB Ventures is excited to be part of the Factris journey and is looking forward to closing cooperation with Factris in developing receivables based financing solutions in Europe and beyond.”