Lithuanian startup Softloans raises €1m to boost SME financing in e-commerce

This strategic financial injection, led by Firstpick and supported by a consortium of business angels, marks a pivotal moment for Softloans as it aims to bolster the financial capabilities of small and medium-sized enterprises (SMEs) within the e-commerce sector and redefine SME lending.

The company provides an embedded revenue-based lending solution tailored specifically to the e-commerce landscape. By seamlessly integrating financial services into digital platforms, including marketplaces, payment solution providers, and aggregators, Softloans simplifies the loan acquisition process for SMEs. This approach not only streamlines financing but also customises financial solutions based on the unique traffic and sales data of each client.

With the newly acquired funds, Softloans plans to further develop their technological solution and extend their services beyond the Lithuanian market, targeting additional European countries. This will enable the company to support a wider range of digital platforms, including point-of-sale terminals, and offer their innovative lending product to more SMEs, ultimately fueling the growth of businesses in Lithuania and beyond.

Softloans co-founder and CEO, Audrius Grikeviius, highlighted the strategic importance of the funding, stating, ” The pre-seed funding provides even more confidence and an opportunity to further develop the technological solution so that it is easily and smoothly applied not only to e-commerce businesses, but also to businesses using POS terminals. I have no doubt that the Softloans revenue-based financing solution is by far the best lending product for small and medium-sized businesses that we have on the market today. Like all innovations, this one has taken some time to be accepted by partners and customers in the region, but we are already seeing excellent results and are happy to be part of the growth of businesses.”

Softloans’ embedded revenue-based lending solution, which includes data collection, analytics, risk assessment, and loan management, is currently utilised by ten partners. In its two years of operation, Softloans has successfully processed data from nearly 1,000 corporate clients across Lithuania, Latvia, Estonia, the Netherlands, Finland, and Poland.

The future of fintech lending

The successful funding round for Softloans highlights the growing recognition of the potential of fintech lending to unlock new financing opportunities for SMEs.

While the current economic climate is less than favourable for small and medium-sized enterprises, fintech has the potential to transform the lending process, making it more accessible, efficient, and tailored to the unique needs of SMEs. Unlike traditional banks, fintech lenders use innovative technologies to streamline application processes, empower data-driven decision-making, and provide more flexible terms.