Softloans, a Vilnius-based fintech startup specializing in embedded lending technology, has successfully secured €1M in a pre-seed funding round. This investment, led by venture capital fund Firstpick and supported by contributions from business angels, aims to revolutionize financing for small and medium-sized enterprises (SMEs) in the e-commerce sector.
Softloans was founded by Audrius Griškevičius, Edmundas Kevisas, and Aleksandras Kunickas. The company’s innovative technology facilitates revenue-based lending directly within digital platforms like marketplaces and payment providers, making it easier for smaller businesses to access capital and compete with larger entities.
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Enhancing SME Lending with Advanced Technology
Softloans’ embedded financing tool integrates seamlessly into the digital platforms SMEs already use for their operations. The solution rapidly assesses risks and creditworthiness, offers loans without traditional collateral, and features a flexible repayment schedule based on income flows. This model replaces conventional interest with a one-time loan fee, simplifying the borrowing process for small businesses.
Proven Success and Plans for Expansion
In its two years of operation, Softloans has developed and refined its lending solution, which is now utilized by 10 partners. The technology encompasses data collection, analytics, risk assessment, and loan management, efficiently serving nearly 1,000 corporate clients across Lithuania, Latvia, Estonia, the Netherlands, Finland, and Poland.
With the new funds, Softloans aims to further enhance its technology, making it applicable not only to e-commerce but also to businesses using POS terminals. Co-founder Griškevičius expressed confidence in their product, stating, “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.”
The company is also planning to expand its operations within Lithuania and internationally, supported by the proven effectiveness of its product and the growing acceptance among partners and customers in the region.
Softloans is poised to make a significant impact on the way small businesses access and manage financing, contributing to the growth and sustainability of SMEs in a rapidly evolving market.
