The FinTech market in the EMEA region has been booming over the last few years, with leading lenders such as Liberis, iwoca, Lulalend and MNT-Halam all announcing additional fundraising rounds. This is providing small and medium-sized businesses (SMBs) with more alternative financing solutions than ever before. At the same time however, stricter credit standards have meant a tightening of lending criteria across the UK. In 2022, less than half of loan applications from small businesses were successful; reflecting an uncertain macroeconomic environment. One company that has been bucking the trend is London-based iwoca. Their credit line with Pollen Street Capital was extended from 125 to 170 million pounds ($150 – $204 million) after experiencing a 54% increase in SMBs it had funded across both U.K & Germany alone.
Meanwhile, Egyptian FinTech MNT-Halam have raised $400M at a valuation of over $1 billion; with International Finance Corporation (IFC) investing up to $40M as part of a deal which is expected “to promote increased access” & improve competitiveness in MSME finance market by leveraging technology at scale. As these and other emerging lenders continue to build out their product offerings in EMEA, more and more SMBs are taking advantage of the new financing options available to them – despite concerns about wider economic conditions across Europe. This is driven in part by the innovative use of technology by these lenders, which has made it easier than ever for SMBs to apply for and receive funding quickly and efficiently.
It remains to be seen how long this positive trend will continue for; but for now, it seems that the FinTech sector in EMEA is going from strength to strength – providing much-needed financial support for SMBs across the region. FinTechs in EMEA are filling the gap created by traditional lenders and helping SMBs to access the capital they need. This is a testament to the power of innovation and technology, which has enabled FinTechs to provide financing solutions that are both more effective and efficient than ever before. As these companies continue to develop their product offerings, they are likely to have an even greater impact on the SMB finance market in EMEA – providing more capital, better terms, and wider access than ever before. As long as macroeconomic conditions remain uncertain, FinTechs will continue to provide a much-needed lifeline for small businesses across Europe – allowing them to grow and thrive despite the challenges they face.