Groov Secures £1.5m to Pioneer Next-gen Embedded Lending Solution to Solve the $1.2trn Funding Gap in the Global SME Sector

Groov, a pioneering orchestration layer for embedded lending, announces the successful completion of a £1.5 million Seed round of funding.

The round was led by Fuel Ventures, with participation from Aperture Capital and a group of industry-focused angel investors. This investment will drive Groov’s mission to enable SMEs to access capital when they need it and on the best terms. 

Groov believes that embedded finance is the solution to the persistent $1.2trillion funding gap in the global SME sector. However, Groov argues that the next phase of embedded finance, what it calls Embedded Lending 2.0, is required to truly address this challenge.

Groov connects lenders with commerce platforms such as vertical SaaS platforms through one single integration. This approach provides platforms with access to a variety of capital solutions, creating optionality, providing best terms for SMEs while achieving highest approval rates. By using Groov’s technology, lenders access a much broader client base, spreading fixed costs, and to do so with much lower cost of customer acquisition. 

Mark Pearson, Founder of Fuel Ventures commented: ”When speaking to Mark (CEO) and Rakesh (CTO) we felt that they were on to something special. Their vision to innovate the SME capital space is a brave goal and we at Fuel embrace that way of thinking. The combination of their platform together with the strength and experience of the team made us decide to invest in Groov.” 

Looking ahead, Groov plans to launch multiple new lending products, expanding beyond merchant cash advance solutions. The upcoming multi-product offering will provide platforms with access to a range of lending solutions, delivering more comprehensive and tailored options for their merchants. 

The funds will be primarily used to accelerate the development of Groov’s innovative platform, with a focus on building an orchestration layer for embedded finance. Groov aims to embed commercial lending products into platforms used by SMEs, ensuring that financial solutions are available and tailored to their specific needs. With this investment Groov is able to double down on the strategy to build a multi region and multi lending product company. 

Mark Hazzard, CEO of Groov, commented, “We’re incredibly excited to partner with Fuel Ventures and our other investors. This investment validates our vision to responsibly enable any SME to access capital on their terms at their point of need.”