Attempting to enhance the open banking system, London-based fintech Crezco has announced it has raised £3 million in seed funding. The UK’s first open banking payment solution is designed to make B2B invoice payments as convenient as B2C card payments without the costs collected by companies like Visa and MasterCard.
Invoice payments for SMEs
Founded in 2020 by Ralph Rogge and Igor Pikovsky of Rogge Global Partners – a $60 billion bond fund which was sold to Allianz in 2016 – the fintech startup has already established unique partnerships with Xero, QuickBooks and other B2B platforms for invoice payments for millions of SMEs across the UK and Europe.
Rogge brings his previous experience of successfully building YouLend, a company that partners with the world’s leading e-commerce platforms, tech companies and PSPs to offer seamlessly embedded merchant financing.
Free online payment solution
Ralph Rogge, co-founder and CEO of Crezco said: “Compared to typical software companies, fintech hasn’t historically scaled at zero marginal cost. Open banking solves this paradox. We provide a free online payment solution in the same manner WhatsApp provides free online messaging to replace cellular SMS messages. Simply, we leverage open banking to increase convenience and reduce costs.”
“We hope to be able to introduce a fairer and more affordable payment option for millions of small businesses that have faced the prospect of a tough future over the past year. In turn, we hope to see SMEs passing these savings onto consumers,” he added.
Crezco received financial support from established individuals and companies in the fintech space. Notable individuals who invested in the business include Charles Delingpole, founder and CEO of Comply Advantage which aims to tackle financial crime through artificial intelligence and machine learning; and Chris Adelsbach, fintech investor and managing partner at Outrun Ventures.
The platform also received investment from UFP Fintech, early investors in Revolut as well as other angel investors, venture capital funds and payment specialists.
Commenting on his investment in Crezco, Chris Adelsbach commented: “Crezco’s unique and innovative B2B payment solution for SMEs is a clearly exciting investment opportunity with huge potential. The startup has already achieved a great deal with its existing partnerships secured in only a year. The future is bright for the company and I look forward to watching Crezco grow and expand internationally.”
Value-added products on radar
The proceeds will be supporting the growth of the team to continue the company’s international expansion. Funding will also be used to build out Crezco’s value-added products to complement its free payment solution for domestic payments.