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.
