Weavr raises $4M seed round to bring embedded banking to the services sector
Weavr, today launched the first suite of embedded banking tools designed specifically for the services sector. For the first time, with Weavr, businesses in services segments can – with unprecedented ease and speed, and without specialist knowledge of finance and regulation – bring the bank to their customers, rather than send their customers to their bank.
Weavr’s vision for embedded banking is backed by leading venture capitalists focused on the fintech and digital industries: Anthemis, QED Investors and Seedcamp, who have just invested in Weavr’s $4M seed round.
The digital transformation of services industries such as education, employment and logistics has accelerated since the disruption wrought by the Covid19 pandemic. Services sold and delivered over digital channels are expected to hit $2.1trillion in 2020 globally and to grow at 17% CAGR over the next 3 years. Innovators in services sectors are driving a radical new trend: embedding financial services into their digital applications.
Just as consumers no longer take out their wallet to pay for their taxi, no longer will they go to their bank to get a loan to finance their home cinema purchase, or to an insurance website to purchase cover for their dream holiday – financial services will increasingly be embedded into the process of buying and consuming other services.
Banking is a highly regulated industry which makes it hard to work with for digital businesses disrupting the traditional services sectors such as education, fitness, employment. Innovators face a formidable barrier of complexity and burden of compliance when looking to integrate financial services into their offerings. Weavr’s new embedded banking tools are specifically designed for such innovators, who want to be able to build, integrate and run embedded banking solutions without specialist knowledge in financial services.
Chris Reed, Founder and CEO of ProxiSmart, who are using Weavr for their ParkingPerx solution, said: “Weavr’s solution provided us with the platform to accelerate our route to market. We were faced with developing multiple integrations across many third-party stakeholders. Working with Weavr removed the need to carry out a long and complex build and meant we could take advantage of favourable market forces that we may have otherwise missed.”
Alex Mifsud, Co-founder and CEO of Weavr agreed: “The need for simple and accessible embedded banking products could not be more urgent. As the world starts to look beyond the Covid19 crisis and the possibilities stemming from lasting changes in consumer and business behaviour, embedded banking offers extraordinary potential for the future of work, the move away from cash, and the integration of financial services into all manner of digital businesses.”
Yann Ranchere of Anthemis, an investor in Weavr, had this to say: ‘“As financial services continue to become embedded in all online and offline experiences, providing a scalable platform to let any company add banking to their services via APIs is a massive opportunity. The Weavr team is building this infrastructure and we can’t be more excited to support them by leading their Seed round.”
Yann Ranchere, Partner at Anthemis and Yusuf Özdalga, Partner at QED Investors have both joined the Weavr board following the investment.