Fasanara Capital has provided a €30m (£25.2m) funding line to Czech fintech Flowpay to provide provide working capital financing for small and medium-sized enterprises (SMEs).

The fintech is planning to use the new line of credit to grow beyond the Czech Republic, Slovakia, and the Netherlands at an accelerated pace. 

“We have the ambition to become the next Czech unicorn,” says William Jalloul, chief executive and founder of Flowpay.

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The Czech tech startup has developed what it calls “an innovative way” to assess the risk and potential of SMEs, on the basis of which it provides operational funding for their growth. 

Using artificial intelligence, Flowpay automates the process from funding applications to risk scoring and evaluation, then makes it available to clients via embedded finance, connecting to their point-of-sales systems or e-commerce platforms, reducing the time between application and funding.

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“We believe that the future of financial markets depends on the adoption of modern technology to effectively provide access to funding to smaller players who are increasingly being left behind by banks,” said Jalloul.

The partnership with Flowpay aligns directly with Fasanara’s mission to bridge the multi-billion-euro funding gap faced by European SMEs, said Matt Kus, partner and head of origination at Fasanara Capital.

“Especially those excluded by outdated scoring models and lacking the capital to grow optimally,“ he added.

Flowpay was originally backed by Techstars – a leading pre-seed investor globally, alongside rising Czech VCs like Soulmates Ventures and DEPO Ventures, and key angel investors such as Mark Ransford, Martin Herrmann, Kartik Varma, Allard Luchsinger, and others. 

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