Vilnius-based fintech startup Softloans has announced to AIN that it has closed a €1 million pre-seed investment round led by FIRSTPICK. The round also saw participation from undisclosed business angels. This investment will support Softloans’ approach to working capital constraints faced by SMEs.

About Soaftloans

  • Softloans‘ embedded revenue-based lending solution to SMEs grappling with the ever-intensifying competition in the e-commerce landscape. Softloans claims its solution integrates lending services into the digital platforms such as marketplaces, payment solutions providers, and aggregators to offer loans to their customers. The solution also includes data collection, analytics, risk assessment, and loan management.
  • Since the launch in 2022, the Softloans’ solution has already been used by 10 partners. In addition, Softloans has already processed the data of almost 1,000 corporate clients in Lithuania, Latvia, Estonia, the Netherlands, Finland, and Poland.
Softloans
The team of Soatloans. Image by Soaftloans

Our embedded financing tool works in such a way that the loan can be easily obtained by small and medium-sized businesses on other digital platforms that they use for their activities. The Softloans solution assesses the risks and creditworthiness of any e-shop extremely quickly and accurately. After the loan is issued, the solution constantly monitors the income flows and automatically deducts the agreed percentage for the repayment of the loan,

Audrius Griškevičius, CEO and co-founder of Softloans, says.
  • The fresh investment was led by FIRSTPICK, a high-speed VC fund and accelerator for tech startups in the Baltics, investing in fintech, SaaS, deeptech, consumer marketplaces, and other verticals. Its initial ticket is €50,000 — €250,000, but the fund can invest up to €1 million into a single company through follow-on rounds. The round was also supported by several undisclosed angel investors.

According to Softloans, the pre-seed funding provides even more confidence and an opportunity to further develop its technological solution. The team also plans to expand in Lithuania and beyond.

This is the second investment by FIRSTPICK announced this week. On April 17th, AIN reported on the €1 million round for the Lithuanian startup CTO2B, where FIRSTPICK acted as a participant.

Lithuanian startup CTO2B secures €1M in a pre-seed round