Vilnius-based banking-as-a-service company Kernolab has raised $1 million in a pre-see funding round. The start-up supplies companies with any number of modular, out-of-the-box solutions that permit them to incorporate fintech services consisting of payments, accounts, cards, loaning, and quickly, insurance products into their set of capabilities. This new financing is anticipated to foster faster market growth and fuel even more B2B sales and collaborations.
Banking (quite actually) on the growing trend of ingrained financing, and its wide range of applications (literally), Kernolab is stepping up to the plate and taking the complexities off the hands of organizations that are not generally in the position to be handling financials besides their own.
Let’s take a look at this another method; Kernolab is the bridge between fintech and non-finance-related companies. Their offer pools a range of different monetary services together with banking licenses and leas this technology out to non-licensed services, all the while capitalising on the service.
« Financial services can blend into any business that has a possible to optimise its operations or create additional profits. A logistics company with chauffeurs all over Europe would take advantage of simplifying income payouts by using its own bank accounts, » explains CEO and co-founder Vachtangas Babunasvili. « The Starbucks card, for instance, has actually allowed it to categorize customers’ pre-loaded money as ‘stored-value card liabilities’, effectively giving itself a 0% interest rate on a $1.6 billion loan. »
Kernolab’s $1 million in pre-seed financing was offered via a round led by Lighthouse Ventures that saw the involvement of eastern European champion Start-up Wise Guys.
Impressed by what they saw, Lighthouse Ventures’ Michal Zalesak commented, « Embedded financing is the next action in fintech and something that can touch practically any company on the planet. The obstacle is discovering a service that can perfectly allow the shift into that next stage of fintech, and with Kernolab we have discovered that service as well as the ideal team to lead it to prevalent adoption. If every company will be a fintech in the future, then possibilities are that they will be dealing with Kernolab. It took us just 6 weeks to move on with this investment. »
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