Paysme has launched its £1 million funding round on the private capital platform Globacap to expand what the UK fintech calls Europe’s first-ever B2B super app.
Proceeds from the fundraising will be used to enhance and expand Paysme’s services, which already include mobile payments, ecommerce, digital banking, accounting, lending, and insurance services from providers such as Barclays, Railsbank, TOQIO, Bambora, and Cybersource.
The fintech’s ‘super app’ approach powers multiple revenue streams from embedded financial services with product features tailored to meet small business needs and their transition to a digital economy, creating recurring revenues, high retention, low acquisition costs and granular customer data.
It claims to have 3,000 paying businesses active across 59 towns and cities in the UK and Ireland, helping to generate £47 million in cash flow since launch.
After generating £1.6 million in total revenue to date, Paysme says it is poised to accelerate growth to profitability over 12 months by raising £1 million of equity funding to invest in its fintech services, technology, and hiring programme in preparation for scaling.
‘Bring the high street and local communities back to life’
Derek Stewart, founder and chief executive officer at Paysme, comments: “Paysme is at the core of the circular economy, championing the needs of local businesses and the communities they serve. These companies are the beating heart of our high streets and have been decimated by the pandemic—with almost 30% of all small businesses closing for good.”
“Our mission is to bring the high street and local communities back to life by giving them easy access to embedded digital financial services and reinvesting capital back into small independent operators through a customer ownership business model.”
Stewart continues: “The Paysme platform hosts everything a small business needs to run its business in the digital economy in an integrated, easy, and cost-effective way with one point of personal contact from a team with a deep understanding of their industry. It eliminates the need to use a multitude of different unconnected suppliers for mobile payments, ecommerce, digital banking and administrative tools saving SMEs time, money and stress, and solving sector fragmentation and relationship marketing.”