UK-based fintech startup SAPI has closed a GBP 7.5 million equity funding round to augment the small business lending landscape. SAPI – which stands for ‘Securities API’ – enables payment companies to offer business loans and other financing products to their clients, earning a revenue share while growing their payment ecosystem.

The new capital will be deployed to onboard new strategic partners, improve the product offerings, and scale the company’s presence in Europe. After several years in stealth mode, SAPI has emerged as a well-kept secret in London’s fintech sector, with a number of prominent partnerships currently being kept under NDA. The substantial equity fundraising by SAPI marks a promising beginning for the fintech sector in 2024.

This comes after the sector experienced its lowest level of venture funding in six years in 2023, despite being the leading sector for startup funding worldwide in 2021. The startup’s officials said their mission is to drive the growth of small businesses. They help payment companies build stronger ties with their client base and establish win-win relationships.

With this round of funding, they're happy to broaden their support to small businesses across Europe. What led backers to invest in SAPI? SAPI’s backers include founders of Monzo and GoCardless, founders of Lendable, co-founders of TrueLayer, co-founders of Scalapay, founders of Treatwell, founders of Glovo, co-founders of FACEIT, and founders of Fonix Mobile and Grabyo. Officials from Passion Capital, who backed the company for the third time, remarked that SAPI has emerged as a key player in empowering small businesses — a sector that the pandemic highlighted as the backbone of our economy.

They see SAPI evolving into an essential part of the UK and European financing ecosystem. Representatives from Lendable explained that they invested in SAPI because of their unique founding team. They have strong technical expertise and are innovating in the embedded finance sector, providing much-needed financing for business owners.

They believe in their vision and are happy to be part of their journey. .