MICROCAPITAL BRIEF: Romanian Fintech Instant Factoring Raises $915k in Equity; Will Expand to Serbia, Boost Invoice Financing for SMEs in Romania

With a new capital injection of EUR 750,000 (USD 915,000) from its current shareholders, Instant Factoring, a Romania-based firm that buys businesses’ accounts receivable, will invest EUR 350,000 (USD 427,000) in expanding to Serbia. During 2021, it expects to buy invoices worth approximately EUR 5 million (USD 6.1 million) in that country. In explaining the choice to enter Serbia, Instant Factoring CEO Cristian Ionescu cited political stability and similarities between the Serbian and Romanian markets.

Instant Factoring will use the remainder of its fresh funding to increase its core business servicing small and medium-sized enterprises (SMEs) in Romania. It anticipates reaching an annual financing volume of EUR 45 million (USD 55 million) for 1,500 SMEs in that country.

Founded in 2018, Instant Factoring is an online invoice factoring company that works with SMEs with turnover of up to EUR 2 million (USD 2.5 million). The firm offers 24-hour turnaround on purchases of invoices that are due in 30 to 90 days. Its shareholders are Constantine Goulimis, CEO of UK-based Greycon; investor Xenofon Vodorouglou; and Educativa, a Cyprus-based entity that is active primarily in education.

By Eha Joshi, Research Associate

Sources and Additional Resources

SeeNews article
https://seenews.com/news/romanian-online-microfinancing-startup-instant-factoring-to-expand-to-serbia-724142

Instant Factoring homepage
https://www.instantfactoring.com

Superfounders article on Instant Factoring
http://superfounders.com/amp/2019/11/romanian-fintech-startup-instant-factoring-raises-e500k-seed-investment

Romania-Insider article on Instant Factoring
https://www.romania-insider.com/instant-factoring-expand-serbia-financing-round

FinTech News article on Instant Factoring
https://www.fintechnews.org/instant-factoring-expands-on-the-european-market-after-the-capital-increase-by-750000-euros

CrunchBase profile on Instant Factoring
https://www.crunchbase.com/organization/instant-factoring

Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at: http://www.microcapital.org/products-page/.