Mitgo Group acquires UAE-based finance platform Embedded
This acquisition enables Mitgo Group to provide embedded finance solutions to their affiliate customers.
Mitgo Group, a German marketing technology provider, has acquired the UAE-based embedded finance platform Embedded for an undisclosed amount, according to Wamda.
The acquisition will enable Mitgo Group to provide embedded finance solutions to its affiliate customers.
The new division will offer embedded finance solutions to publishers globally, targeting underbanked audiences in MENA, APAC, and LATAM regions. According to a statement, it will enable immediate earnings withdrawal, access to loans, reduced transaction costs, exchange commissions, and improved transaction speed.
Publishers, primarily small and medium-sized businesses (SMBs), will benefit from improved access to loans and other financing options.
“On top of other viable opportunities, our future partners from the financial industry will get both an excellent test site on the basis of a new market and a vast system of distribution of financial products among the audience of publishers: cashback services, media buyers, loyalty programmes, BNPL services, and many others," said Alexander Bachmann, Founder and CEO of Mitgo Group.
Oleg Chanchikov, CEO and Founder of Embedded, will lead the new business direction. He has over 20 years of experience in IT and financial markets, and has previously held senior management positions at Visa.
“The entire world, including global players in the financial market and international organisations such as the UN and World Bank, work to empower SMBs and make financial services more accessible for them. Embedded finance solutions help the market grow not just from the top-down approach when a bank offers pre-defined products to its clients, but also from the bottom-up when the industries themselves use financial products to solve the needs and the problems in their core business," stated Chanchikov.
"I believe, together with Mitgo Group, we will not just change the way the martech industry uses financial products but introduce revolutionary solutions that will change the whole market,” he added.
Mitgo Group uses AI and machine learning algorithms with over 100,000 active partners to assess borrowers and build loan portfolios. According to the company, its embedded finance solution enables financial industry leaders like banks, payment systems, and e-wallets to expand their customer and niche product portfolios in areas and countries previously too expensive and risky for them to enter.
The startup plans to facilitate over 7% of transaction volume in the next three years, valued at over $1.5 billion due to the sector's growth.
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Edited by Kanishk Singh
