Manchester-based BankiFi is a fintech business, which specialises in payment processing and financial administration services for SMEs. Today, the company has grabbed a £2.2 million investment in a funding round led by Praetura Ventures alongside participation from the Greater Manchester Combined Authority (GMCA).
Of the £2.2 million, £1.5 million came from Manchester-based Praetura Ventures, the VC fund that targets early-stage businesses in high-growth sectors. Additionally, it received £700k from GMCA. BankiFi will use the funds to expand its product and service offering, grow its client base and target new domestic and overseas markets.
Mark Hartley, founder and CEO at BankiFi, said: “The good news is that banks are beginning to see the sizeable opportunity to tap into this under-served market. Our software allows them to offer advanced services to SMEs, and we’re seeing a real uptick in demand for our products as banks look to compete in this space. The Praetura Ventures team has deep sector insight with a track record of scaling fintech businesses, which we believe will be crucial in helping us grow our business.”
David Foreman, Managing Director at Praetura Ventures, said: “The UK is Europe’s established leader in FinTech, and the sector will play an important role in future of the UK economy. The global market is forecast to almost triple in size to £380bn by 2030, so there’s a clear opportunity for innovative businesses like BankiFi to scale up. It’s such an exciting sector that we’re always looking to invest in.”
Councillor David Molyneux, GMCA lead for investment and resources, said: “We are delighted to be investing in BankiFi. This investment will boost the services BankiFi is already providing and assist in achieving its ambitious global ambitions. COVID-19 has amplified the importance of helping micro and small businesses reduce time spent on administration rather than doing the job, and BankiFi’s products will be invaluable for fulfilling the post-pandemic opportunities for businesses.”
Focuses on helping SMEs
A McKinsey report estimates that around 74 per cent of an SME’s time is spent on ‘non-core activities’ including time-consuming administrative tasks. Also, late payments owed to individual SMEs stand at over £6,000 on average, clains a research from the Federation of Small Businesses.
Founded by Mark Hartley in Manchester in 2017, BankiFi was founded to help financial institutions better serve small and medium-sized businesses. The firm’s technology equips banks to take on challengers and provide more agile customer-led services to SMEs, as opposed to more traditional product-led offerings.
BankiFi lets banks provide a set of integrated services, including invoicing, payments, cash management and accounting, which are designed to help businesses reduce time spent on financial administration.