Max Tayenthal, the creator of N26, and Earlybird, an existing investor, sponsored the investment round, which was headed by UK-based venture capital firm Blossom Capital.

Established in 2021, Finmid offers the financial infrastructure that allows B2B platforms to give its SMB (small and medium-sized company) clients—like eateries or shops—access to customized financing solutions.

Declaring that it offers "a much-needed alternative to banks for European SMBs looking for financing support," the company is putting itself in a position to compete with established financial institutions when it comes to funding small enterprises in the area.

According to Finmid, small and medium-sized enterprises have been left behind by the remote and impersonal banking that has emerged during the previous few decades of consolidation.

"Expand to core markets, localize operations, and support more financing options for easier platform integration and a smoother user experience," is how the company says it plans to spend the additional funding.

Furthermore, the fintech said that, in an effort to strengthen its merchant support, it has partnered with Wolt, a meal delivery company based in Finland.

The two have collaborated since the beginning of the year to develop "Wolt Capital," a cash advance tool intended to help retailers that use the Wolt platform.