Leanpay, the pioneering Buy Now Pay Later (BNPL) and Point-of-Sale (POS) lending platform announced the successful completion of its Series B funding round, securing a total investment of €10 million. This investment round was led by BlackPeak Capital, a leading growth equity firm in Southeast Europe, followed by Catalyst Romania Fund II, both new investors, and joined by South Central Ventures and Lead Ventures, which had already invested in previous rounds.
Originating from Slovenia, Leanpay is now present in Romania and Hungary and boasts 120 thousand satisfied customers, more than €200 million in consumer loans issued, and cooperation with over 1500 merchant partners, enabling consumers to pay in installments for a wide range of purchases. Last year alone, the company's revenue grew 2.5x, while since Series A, the company's revenue growth has been 4x.
Miša Živić, Leanpay co-founder & CEO, expressed his enthusiasm about the new funding:
"This investment is a testament to our team's hard work and commitment to delivering a superior user experience. It will enable us to solidify our market leadership in Slovenia, scale our operations in Romania and Hungary, continue to roll out innovative services, and attract top talent to our growing team to become the digital consumer lending champion in the Central & Eastern European region."
Leanpay is renowned for its seamless user experience, setting it apart from traditional financing options. The platform offers an entirely digital experience, eliminating the need for bank visits or paper documentation. Shoppers enjoy the flexibility to check their credit limit before the purchase and choose their installment plan entirely online, making Leanpay a convenient and user-friendly choice.
Janko Medja, Leanpay co-founder and CBDO is proud of how Leanpay accelerates merchant partner revenues across different retail industries.
"We have provided value to numerous merchants across a wide range of industries, from electronics and furniture to sports equipment, medical services, and much more. We work with some service providers where Leanpay is one of the top two payment methods, occasionally even the first one. When we implement our solutions with the partners, they can instantly reap the benefits. On top of that, we listen to shops' feedback to customize our approaches and innovate solutions, leading to even greater success for our partners."
"This investment will improve Leanpay's capital structure and decrease overall financial risk. Additional funds will enable greater investment potential and strengthen the financial stability of all companies in the Leanpay group,"
stated Tilen Zugwitz, Leanpay co-founder and CFO.
Niklas Pichler, Managing Partner at BlackPeak Capital and instrumental in the success of this transaction, will join Leanpay's board to bolster the company in achieving its growth objectives.
"The shift in consumer behavior towards flexible payment methods like BNPL is increasingly influencing daily life for all generations and reshaping the e-commerce landscape, which is pivotal for both businesses and customers alike. We are excited to partner with Leanpay, a Slovenian leader in responsible POS lending and a pioneer in the 3rd generation of BNPL solutions in our region operating an asset-light model",
said Niklas Pichler.
"Covering an interesting niche within the lending industry, we are confident that the company, with our support, will achieve its full potential and significantly impact the market,"
he added.
"We are seeing great potential for Leanpay in our region, and it was a natural move for Catalyst to participate in this investment round, especially since we can help create significant additional value in the company in one of the key markets of Eastern Europe, Romania. We have specific expertise in the team, we have the local network, and we can bring together multi-channel opportunities for Leanpay here, as we have already started to do, in the months leading up to the investment",
said Marius Ghenea, Managing Partner at Catalyst Romania.
Jure Mikuž, Managing Partner at South Central Ventures, remarked,
"Developing technologies, which enable traditional industries like consumer lending to get digitalized and more efficient, have always been the core of our strategy. Leanpay is a brilliant example of a company where we've found a perfect match of entrepreneurial ambition and industry expertise - all of which have been brought on board by the three co-founders. They are not looking to reinvent the wheel but rather to explore how to make the ride smoother. And by partnering with new investors, this ride should be even faster and more dominant in the markets Leanpay aims to conquer in the next couple of years."
Balázs Haszonics, Partner at Lead Ventures, is delighted to reaffirm their support for Leanpay, which aligns perfectly with Lead Ventures' investment thesis.
"The success of this Series B funding round, joined by prestigious investors, underscores our belief in Leanpay's robust business model and ability to grow and innovate in digital consumer lending space rapidly. We recognize the exceptional founding team with great respect, whose vision and dedication have driven Leanpay's impressive growth and market presence, and we confidently see significant further expansion opportunities. Leanpay's growth trajectory and strategic vision make them a standout leader in the CEE region, and we are excited to be part of their journey towards market dominance."
Leanpay is one of the handful of regional companies that have completed a Series B funding round. This round marks a significant milestone in the company's journey, reinforcing its status as a leading BNPL and POS lender and setting the stage for future growth and expansion.
About Leanpay
Leanpay is a leading POS (Point-of-Sale) financing solution provider for vendors and consumers. It actively contributes to the growth of merchant partners across Central and Eastern Europe and has established itself as a trusted installment payment solution for a growing number of shoppers. Leanpay is pioneering the third generation of BNPL (Buy Now Pay Later) services with emphasis on being a regulated company, a responsible lender performing robust credit checks as well as financing purchases of any size with fairly priced loans.
About BlackPeak Capital
BlackPeak Capital was established in 2014 and targets growth equity investments of €5-15 million in fast-growing SMEs in Romania, Bulgaria, Slovenia, Croatia, and Serbia. Its second fund, BlackPeak Southeast Europe Growth Equity Fund, focuses on partnering with the region's outstanding entrepreneurs who aim to build world-class companies through continued innovation, organic growth, and add-on acquisitions. BlackPeak Capital remains committed to making a significant positive economic, social, and environmental impact.
BlackPeak Southeast Europe, Growth Equity Fund, is backed by the European Investment Fund under the COSME and JEREMIE programs, the European Union under the Equity Facility for Growth established under Regulation (EU) No 1287/2013 of the European Parliament, Invest BG, the EBRD, the IFC, and other European private institutional investors.
About Catalyst Romania Fund II
Catalyst Romania is a fund manager that launched the first private equity and venture capital fund dedicated to Romania in 2012, financed through JEREMIE. The fund manager prioritizes investments in rapidly growing sectors, including Technology & Internet, Media & Communications, and Technology Services. The team provides growth capital to companies that are or have the potential to become regional leaders or global players. Catalyst Romania Fund II SCSp ("Catalyst Romania" or "Catalyst Romania Fund II") is an alternative investment fund managed by Catalyst II GP S.à.r.l. Both companies are organized under Luxembourg law and act as alternative investment fund managers.
About InnovFin Equity and JEREMIE Holding Romania
Catalyst Romania Fund II is supported by JEREMIE Holding Fund Romania, an investment program between EIF and the Government of Romania, where EIF acts on behalf and for the ultimate benefit of the Romanian Government and invests the returns generated by the operations carried out within the JEREMIE Holding Fund Romania during the eligible period 2007-2013, and InnovFin Equity, with the financial support of the European Union under the Horizon 2020 Financial Instruments and the European Fund for Strategic Investments (EFSI) established under the Investment Plan for Europe. The objective of EFSI is to support financing and implementing productive investments in the European Union and to ensure increased access to funding.
About EIF
The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support European microenterprises and SMEs by providing access to finance. EIF develops venture capital and growth instruments, guarantees, and microfinance instruments explicitly targeting this market segment. Through its role, EIF promotes EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.
About South Central Ventures
South Central Ventures (SCV) is the longest-standing venture capital investor in SE Europe. It manages over €100m and invests in regional seed-stage companies operating in globally prosperous industries. Present in four offices (Ljubljana, Zagreb, Belgrade, Skopje), SCV manages over 50 high-tech companies in its portfolio, including Cognism, all eyes on screens, 57hours, and Orgnostic, among others.
About Lead Ventures
The Budapest-based Lead Ventures invests in late seed and Series A startups whose products and services have already been validated in the market and require substantial capital for growth. It invests in startups across various sectors, including mobility, energy, fintech, and other B2B software verticals, while looking for opportunities across the CEE region. It has recently announced a €100m final close of its second fund, one of the largest funds recently raised in the region. With its first fund, Lead Ventures built a portfolio of ca. twenty startups. They invested, amongst others, in Slovakia's CloudTalk, a call center software provider, Hungary's e-commerce messaging platform Recart, and Czech AI traffic analytics platform GoodVision. Lead Ventures successful exits include Hungary's biggest exit of AiMotive, an autonomous vehicles technology, and Amodo, an insurtech company.
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