# Banxware Financial Model

Embedded lending-as-a-service (LaaS) platform that allows non-financial platforms (PSPs, marketplaces, shop systems) to offer revenue-based cash advances to their merchants - fully white-label, end-to-end, no effort required from the platform or lender.

- Canonical: https://finamodel.com/startups/banxware
- Excel download: https://finamodel.com/startup-models/banxware.xlsx
- Category: Fintech
- Model type: Marketplace / GMV
- Funding round: Seed
- Funding: $113M
- Founded: 2022
- Geography: Germany (primary); international expansion signalled as next step [DECK, slide 10].
- Customer: B2B2C

## About the company

Banxware is an embedded lending-as-a-service platform that lets payment providers, marketplaces, and commerce systems offer revenue-based cash advances to their merchants. Its white-label approach places financing inside the partner’s existing workflow.

The company’s distribution model relies on platform partnerships rather than direct acquisition of every borrower. Merchants receive offers sized from recent revenue, and repayment flexes with sales, making product adoption and partner penetration central to the business case.

The model should forecast platform partners, eligible merchants, advance penetration, average advance size, and originated loan volume. Banxware’s fee or revenue-share take rate should be separated from any balance-sheet exposure, while losses and funding costs belong only where the company retains credit risk.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Two live products: (1) **Embedded Cash Advance** (revenue-based lending embedded inside partner platform UI); (2) **KfW Instant Loans** (launched via PENTA in 2020).
- Banxware provides the full loan value chain white-label: compliance/KYC, scoring (API-driven, real-time), loan decision, loan management, disbursement, repayment monitoring, debt collection.
- Dynamic repayment: repayment adjusts to merchant's monthly revenue performance.
- Platform integrations confirmed: PAYONE (signed 2021), Lieferando/Just Eat Takeaway (launched 2021), PENTA, and "4 out of 5 of Germany's largest PSPs".
- Lender partners: Vereinigte Volksbank Raiffeisenbank eG (VVRB, €100m loanbook committed), Varengold Bank, NIBC.
- Slide 5 is a product UI mockup (illustrative merchant dashboard showing "powered by BANXWARE" cash advance widget) - not real traction numbers.

## Revenue model

- Revenue source: Banxware earns fees from the lending transaction (exact fee structure - origination fee, revenue-share with platform, spread on loanbook - is not disclosed in the deck).
- Distribution channel: B2B platform partnerships (PSPs, marketplaces, shop systems) who embed the product; merchants access via the platform UI.
- Pricing to merchant: Revenue-based cash advance; loan offer sized relative to recent monthly revenues; repayment is dynamic (percentage of revenues). Specific factor/rate not stated.
- Lender relationship: Banxware connects borrowers to balance-sheet lenders (banks/funds); it is a tech/service layer, not the lender itself (unless it sets up its own SPV - flagged as a "next" step).

## Traction & metrics

- **Processed loan volume**: ~EUR 13m cumulative via Banxware platform (as of deck date, 2022).
- **EUR 10m processed loan volume** milestone exceeded in 2021.
- **Loanbook commitment**: €100m loanbook by VVRB (2020).
- **Platform partners**: Live on 6 platforms; 4 out of 5 of Germany's largest PSPs signed.
- **Products live**: 2 products.
- **Headcount**: 25 FTE, ~50% in tech.
- **Funding raised**: €4m Series Seed (investors: ForceOverMass, R Ventures, High-Tech Gründerfonds).
- No revenue, GMV, take rate, or # active merchants disclosed.

## Competition / moat

- Moat claims: first-mover advantage in German embedded lending for PSPs/platforms; proprietary AI loan decision engine; real-time API scoring integrated with account info providers, credit bureaus, platform data.
- Competitive framing: traditional banks require 3 years of history, profitability, manual process; Banxware targets younger/lower-credit-rated merchants that banks ignore.
- No direct competitors named in the deck.

## Team & funding ask / use of funds

**Team (slide 11):**
- Miriam Wohlfarth - Founder, Marketing & Sales; formerly founded Ratepay; FinTech Counsel to German Finance Ministry.
- Jens Röhrborn - Founder, Compliance & Legal; lawyer, 20+ years payments; Board Member at PPRO, Lieferando.
- Fabian Heiß - Co-Founder, Product; former Head of Business Unit at finleap; 15+ years banking.
- Nicolas Kipp - Co-Founder, Risk & Bank Relations; former CRO at Ratepay.
- Diogo Simões - Technology; former Group Lead at Klarna; 15+ years engineering.
- Advisors: Aurel Stenzel (former COO, Adjust), Christoph Bornschein (CEO, TLGG Group).

**Funding ask / use of funds:** Not explicitly stated in the deck. The deck signals upcoming investment in platform expansion (international), BaaS/SPV setup, and product/tech acceleration. No specific raise amount or use-of-funds table is shown.

**Prior raise:** €4m Series Seed.

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## Recommended financial model

- **Archetype + why:** Embedded lending / LaaS revenue model - a **loan origination volume + take-rate fee model**, combined with a **platform SaaS-like recurring revenue layer**. Banxware is a middleware/servicer, not a balance-sheet lender, so the model should track: (a) Gross Loan Volume (GLV) originated through platform, (b) take rate / origination fee earned by Banxware on each loan, (c) platform partner count and merchant penetration, (d) opex/headcount. A 3-statement is appropriate for the overall business; the income statement flows primarily from GLV × take rate.

- **Forecast horizon & granularity:** Monthly for Year 1–2; quarterly for Year 3–5. 5-year horizon appropriate for a Series A/B investor audience.

- **Key drivers & assumptions:**

| Driver | Value / Source |
| -- | -- |
| Starting cumulative GLV | ~EUR 13m |
| Active platform partners (start) | 6 |
| New platforms signed per year | 4–8 p.a.; rationale: 4 of 5 largest PSPs already signed; next phase is international + verticals |
| Avg. merchants per platform eligible for advance | 500–5,000 depending on platform scale |
| Merchant take-up rate (% offered who draw) | 10–25%; rationale: industry benchmarks for embedded capital products (e.g. Shopify Capital) |
| Avg. loan size per merchant | EUR 10k–30k; rationale: cash advance products for SMEs; deck shows illustrative €5k–€10k offers to small merchants on slide 9 UI |
| Loan duration (avg. repayment period) | 6–12 months; rationale: revenue-based repayment, short tenor |
| Repeat borrowing rate (loans/borrower/year) | 1.5–2.5x; rationale: revolving nature of cash advance products |
| Banxware take rate (fee/origination fee on GLV) | 3–6% of loan amount; rationale: typical embedded lending middleware fee; exact not disclosed |
| Platform revenue share (% of take rate paid to platform) | 20–40% of Banxware fee; rationale: standard embedded finance economics |
| Headcount | 25 FTE now; scale to 50–80 FTE by Year 3 |
| Avg. fully-loaded cost per FTE | EUR 80–100k p.a.; rationale: Berlin fintech market |
| Default/loss rate on loans | 2–5% of GLV; rationale: Banxware passes credit risk to lender banks, so net P&L impact depends on recourse structure - needs clarification |
| Loanbook capacity (VVRB commitment) | EUR 100m - acts as a ceiling on GLV until new lender capacity added |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Base:** 6 → 20 platforms over 5 years; merchant take-up 15%; avg loan EUR 15k; take rate 4%.
  - **Bull:** Faster international rollout; 30+ platforms; take-up 25%; repeat borrowing 2.5x; own SPV reduces lender cost.
  - **Bear:** Platform signing slows; take-up 8%; higher defaults eat into net fee; lender capacity constrained; regulatory headwinds in DE.

- **Required sheets / outputs:**
  1. **Assumptions** - all drivers in one tab, colour-coded inputs.
  2. **Platform & Merchant Volume** - platform count, eligible merchants, take-up, active borrowers per period.
  3. **Loan Volume (GLV)** - new originations, avg loan size, repeat loans, total GLV per period.
  4. **Revenue** - take rate revenue, net of platform revenue share.
  5. **P&L (Income Statement)** - revenue, gross profit, opex (headcount, tech, compliance, G&A), EBITDA, net income.
  6. **Headcount Plan** - FTE by department, cost per head.
  7. **Cash Flow & Runway** - operating cash flow, funding rounds, cash balance.
  8. **Balance Sheet** - light; focus on receivables (if any recourse) and cash.
  9. **Scenario Toggle** - Base / Bull / Bear toggle feeding all sheets.
  10. **KPI Dashboard** - GLV, active borrowers, platform count, take rate revenue, burn, runway.

## Frequently asked questions

### Is the Banxware financial model free?

Yes. The Banxware model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.