AREX Markets, a Barcelona-based embedded startup finance startup that allows SMEs to source next-day loans while they wait for cash receipts to be fulfilled, is announcing the sale of its overseas subsidiary in Finland to Sweden's Svea Bank.
At the moment, AREX Markets has around 1,200 Finnish customers and partnership deals, which will be transferred over to Svea Bank's register once the acquisition takes effect.
AREX's team say they want to double down on the introduction of embeddable financing in other European markets, such as the UK, aiming to sell the instant short-term debt model on to third party fintechs who can use the service to bring in more customers, such as neobanks, accounting software and enterprise resource planning.
Pasi Väre, Svea's country manager for Finland, said the acquisition was also being made in response to considerable growth in business transactions across Svea's banking portfolio.
"In addition, the deal is pleasant for us at Svea because the focus of our activities is to help partners and customers succeed - offering AREX's partners and customers a wider range of services is exactly that," Vare added.
The Helsinki-based operation was one of three outposts for AREX Markets, which is now left with its Barcelona headquarters and a branch office in London. Its core invoice financing product is augmented by custom APIs that allow the lender to screen an SME's finances, as well as fielding credit risks and handling debt collection automatically.