The two fintech startups Figo and Finreach merge under the umbrella of Finleap. Together, you want to build a platform.
After research by Finanz-Szene.de the API Fintech Figo should merge with Finreach. Finreach is a subsidiary of fintech incubator Finleap, which has previously outsourced API infrastructure. Together, the two companies will develop a finance-as-a-service platform with a B2B focus. In addition to banks and insurance companies, potential customers would also be companies that want to develop and offer end-customer financial solutions.
Figo and Finreach form a joint venture
Finleap, a Berlin-based fintech incubator, is said to have a majority stake in the new joint venture, according to information provided by Finanz-Szene. The former majority shareholders of Figo are now holding a minority interest in the new company. The well-known Fintech head André M. Bajorat changes from the Figo management to the Supervisory Board and should take a position at Finleap. The former Finreach Solutions CEO Markus Dränert will then lead the new joint venture.
According to the financial scene, the platform with 90 employees is to become the second largest B2B fintech in Germany after Solarisbank. The Solarisbank claims to have over 200 employees.
The acquisition is still subject to approval by the Financial Regulator
Last year, Finreach became a provider of end-to-end account switching services to provide businesses with applications for their own end customers. With Figo now comes the necessary infrastructure to create a true platform with API First approach.
The incubator Finleap also makes it a piece-independent from external fintech API, because so far, the incubator API infrastructure for its companies purchased externally.
In 2017, Figo still reported a deficit of 4.5 million euros in the Federal Gazette and also the cash flow of Finreach would have to be negative in the opinion of financial scene. High expectations are therefore placed on the new joint venture.
Also published on Medium.