Czech Republic-based fintech company Flowpay has announced that it secured EUR 2.1 million in a seed round, being backed by Techstars and several other investors. As per the information detailed in the press release, Flowpay, which leverages AI models, automation, and Embedded Finance to support small and medium-sized enterprises (SMEs) to receive operational funding, raised EUR 2.1 million in its seed round.

The company was supported by Techstars, together with Czech VCs such as Soulmates Ventures and DEPO Ventures, and several angel investors. Flowpay’s development strategy With the newly acquired funds, Flowpay aims to expand its operations beyond the Czech Republic, while also improving its technological capabilities and providing its services to a wider range of SMEs. Since the beginning of its operations in 2021, the company has been working toward solidifying its position in the operational finance market, by launching its platform and leveraging AI to allow enterprises to conveniently obtain financing based on the analysis of real operational data. According to Flowpay’s officials, the company works with client data obtained directly from their point-of-sale systems, and ecommerce platforms, and utilises AI to rate their potential to receive financing.

Through its approach, Flowpay aims to support SMEs in their expansion process with its Risk-as-a-Service (RaaS) solution and licence it to financial institutions globally. The company’s plans include both entry to additional markets and further technological development to better meet the requirements of its clients. Also, the investment is set to enable Flowpay to increase its capacity to offer personalised credit solutions customised to the specific needs and capabilities of each business. Furthermore, Flowpay intends to leverage the capital injection to grow its team and improve its operational efficiency.

Representatives from Techstars underlined that considering that SMEs represent a significant provider for the economy, to achieve success, they need financing to fund their growth. With its solutions, Flowpay focuses on enabling fast and cost-effective funding of smaller loans for the SME segment. The company shortens the time required to evaluate credit applications, while also increasing the accuracy of risk assessments, and accelerating access to finances for SMEs.

This approach plans to support dynamic growth and contribute to the sustainable prosperity of the economy, as stated by Soulmates Ventures’ officials. Additionally, Flowpay digitises and automates processes leveraging accurate data, with the information being available to the business by connecting to the company’s financial, accounting, and business systems. DEPO Ventures also underscored that, as a participant in the Embedded Finance approach in the CEE region, Flowpay is committed to enhancing its position as a provider of financial solutions for sole traders and SMEs. .