Author: Marcin

Warsaw-based fintech startup BidFinance, the creator of an innovative auction platform for trading debt portfolios, has raised EUR 1.6 million in funding from venture capital funds 4growth VC, FundingBox, and a group of business angels. The capital injection will enable BidFinance to further strengthen its position in the Polish market and accelerate its international expansion, revolutionizing the debt trading process.

BidFinance has successfully introduced a unique solution to the Polish market, digitizing and standardizing the debt portfolio trading process. The platform connects sellers (including banks, loan companies, telecoms, leasing firms, and energy companies) with potential buyers (collection agencies, investment funds, and law firms). Leveraging an innovative auction model, BidFinance enhances transaction transparency, maximizes sellers’ sale prices, and lowers buyers’ entry barriers.

“The key advantage of our solution over the traditional debt portfolio sales model is the maximization of the seller’s price. One of our clients previously sold its debt portfolios at an average of 15% of their value. After listing the portfolio on our platform, the price increased to 26%. So far, the maximum added value to the portfolio’s starting price during an auction has exceeded 80%,” explains Zenia Karastoyanov, CEO of BidFinance. “This is made possible by providing sellers with access to the entire buyer market; our platform has nearly the entire debt portfolio buyer industry registered. Additionally, conducting real-time auctions creates a competitive environment where buyers genuinely compete for the offered debt portfolio,” he adds.

Since its inception, the company has completed over 70 transactions, with the total value of listed debt portfolios exceeding PLN 1.2 billion. Currently, nearly 70 active buyers are registered on the BidFinance platform, representing 90% of the market. Some of them previously sold their portfolios on average once a year, and after joining BidFinance, they do it several times more frequently.

“The secured funding will enable further platform development and significantly scale our operations in Poland. We are also intensively preparing for international expansion – we will conduct the first auctions outside the Polish market in the second quarter of this year,” adds Zenia Karastoyanov. “We are excited about collaborating with the 4growth VC team. Having an investor with a banking and insurance background will strengthen our credibility and market position. We also see numerous business synergies: we fit into the fund’s strategy of investing in fintech. We appreciate the financial and international experience of the 4growth VC management team.”

BidFinance plans to enter the Nordic countries first, where the annual unsecured debt sales are estimated at EUR 8-10 billion. The company expects to generate its first international revenues in 2025, thanks to existing collaborations with European entities. BidFinance projects that by 2028, the Polish market will account for only 20% of its total revenue.

“Investing in BidFinance aligns perfectly with our investment strategy. The company has developed a solution that not only digitizes but also significantly improves the efficiency of existing debt portfolio sales processes. Moreover, it has been positively validated by the market. We believe that this technology, combined with an ambitious team, gives the company the opportunity to become an international category leader,” says Tomasz Biłous, Managing Partner at 4growth VC.

The European market for unsecured debt trading has enormous potential, with annual transaction volumes estimated at EUR 70-80 billion for banks and an additional EUR 15-20 billion for non-banking institutions. In Poland alone, the market is valued at approximately PLN 12.6 billion, with PLN 9 billion attributed to banks and credit unions and PLN 1 billion to loan companies. Despite this significant scale, the market still faces challenges related to low process standardization and limited digitization.

“The company’s past performance validates the auction platform’s assumptions for debt portfolios in the Polish market. BidFinance’s solution has been very well received by both sellers and buyers. The company is now entering the next phase of development in international markets. We strongly believe in and support BidFinance’s ambition to become a regional champion” says Tomasz Mazuryk, Managing Partner at FundingBox Deep Tech Fund.

BidFinance, through its innovative auction model, perfectly aligns with the global trend of digitizing sales processes and meets the growing demand for effective solutions in this area.

About BidFinance

Founded in 2022, BidFinance is led by Eugene (Zenia) Karastoyanov, an entrepreneur and manager with extensive experience in the financial industry at companies such as Deloitte Poland, Corviglia Capital, and MCI Capital. The company’s initial investor was Digital Ocean Ventures, a venture builder owned by the WP2 Investment fund. Subsequent investors include FundingBox Deep Tech Fund, a group of business angels, and 4growth VC.

Wealthon, a Polish fintech offering tools and innovative financing solutions for SMEs, has raised PLN 12 million from the 4growth VC fund in co-investment with the NCBR Investment Fund. Additionally, the company secured PLN 20 million in debt financing from funds managed by CVI Dom Maklerski. The funds will be used to further accelerate product development and strengthen the company’s market position.

“This investment is a vote of confidence in our strategy and growth potential. We believe it will help us respond even better to market needs and pursue our development goals. We are preparing to launch new payment solutions that will complement our ecosystem for entrepreneurs. We aim to offer the most innovative product suite for businesses in Poland,” said Aleksander Majchrzak, CEO of Wealthon.

Wealthon was established in response to the financial challenges faced by small and medium-sized enterprises. Although SMEs make up over 99% of all businesses in Poland, they often struggle to access financing.

“From the very beginning, we have aimed to democratize access to capital for SMEs. Our mission is to level the playing field in business and ensure that access to financing is not reserved only for large companies or corporations,” added Aleksander Przetakiewicz, co-founder of Wealthon.

With SMEs in mind, Wealthon created POSCASH, a financing solution based on payment terminal turnover. By analyzing a client’s real-time cash flow, the company can effectively manage risk and calculate loan amounts (up to PLN 500,000). Furthermore, the process is fully automated and free from bureaucracy, with flexible repayments that adjust to the enterprise’s capabilities.

The potential of Wealthon was recognized by 4growth VC, a fund specializing in fintech and insurtech investments, which has previously backed companies such as Cashy, Laven, and Plenti.

“Wealthon operates in the vast market of micro and small enterprises, which often lack sufficient access to financing despite having high needs. Their innovative solution and repayment mechanism based on terminal revenues have enabled the creation of a high-quality loan portfolio. CVI’s investment is a testament to that. Combined with an experienced and committed team, Wealthon became an attractive investment for us,” said Marcin Jaszczuk, Managing Partner at 4growth VC.

NCBR Investment Fund (NIF), which focuses on investing in small and medium enterprises, also participated in the co-investment.

“In just five years, Wealthon managed to develop a forward-looking project and successfully bring it to market. These are exactly the types of investments we look for—young, innovative startups focused on commercialization and profitability. We’re confident that supporting the company was the right decision,” said Ksenia Wójcik-Karasiewicz, CEO of the NCBR Investment Fund.

About Wealthon

Wealthon was founded in 2018 by Aleksander Majchrzak and Aleksander Przetakiewicz. In addition to POSCASH, the company also develops other tools for businesses. Wealthon WALLET, a mobile financial management wallet licensed by Mastercard, allows users to manage company finances and make cashless payments from anywhere, at any time. The app also provides instant access to a credit limit (up to PLN 20,000), with the entire funding process taking just 7 minutes—making it the first solution of its kind for companies on the Polish market.

Another tool in Wealthon’s ecosystem is Wealthon POS, a platform combining restaurant management and sales assistance in one. It was introduced following Wealthon’s acquisition of Ristorio in August 2023. The company is currently focusing on integrating this tool with its other products and expanding its functionality for other economic sectors.

The company’s long-term strategy includes international expansion. A key element for scaling abroad is obtaining a National Payment Institution license, which Wealthon has already applied for.

Co-Investments in Innovative Tech Projects in Finance and Insurance Sectors – the Main Goal of the New Partnership Between NIF and 4growth VC

Co-investments in innovative technological projects in the financial and insurance sectors are the main objective of the new collaboration initiated between NCBR Investment Fund ASI S.A. (NIF) and 4growth VC. The two parties have signed a partnership agreement and plan to pursue joint investments.

“We are continuously expanding our network of strategic Investment Partners to leverage shared experiences and reach new, promising and future-oriented areas of the economy. The partnership with 4growth VC opens excellent investment opportunities in the financial and insurance sectors, both of which hold tremendous potential for growth through new technologies and the digitalization of services,” said Krzysztof Szubert, CEO of NIF.

“The combination of private capital, represented by a fund like 4growth VC, and the resources of NCBR Investment Fund as a co-investor, will undoubtedly accelerate the development of many Polish startups. Diversifying funding sources increases our investment potential as a VC fund and thereby contributes to the further development of the fintech and insurtech sectors in Poland,” said Marcin Jaszczuk, Managing Partner at 4growth VC.

In the past year, NIF has signed numerous important agreements with both Polish and international Investment Partners, including: Enea Innowacje, BrigdeOne, PGE Ventures, Change Ventures, Aria, Vinci Capital, Fidiasz, EIT InnoEnergy, and Akesto Investment Holding. Now, 4growth VC joins this group. In the near future, NIF and its Investment Partners will focus primarily on joint investments in companies that are in the growth or expansion stage.

NIF is a co-investment venture capital fund established by the National Centre for Research and Development (NCBR). The fund specializes in investing in small and medium-sized enterprises (SMEs) that are in the growth or expansion phase and are commercializing the results of R&D&I activities. The fund’s investment budget is PLN 700 million. The value of a single investment from NIF ranges from PLN 3 million to PLN 64 million.