Hero: The Future of Fintech for Small Businesses
Introduction
Hero, a Paris-based fintech startup, has recently secured an €11.3 million funding round to revolutionize banking for small companies. With a focus on simplifying financial services, Hero aims to provide an all-in-one solution for managing money, accepting payments, and accessing credit lines.
The Problem
Small business owners often face challenges in dealing with multiple fintech products and financial services. From accepting payments to financing inventory purchases, the fragmented nature of these services can be overwhelming.
The Solution
Hero offers a comprehensive banking product that combines various financial services into a single platform. By allowing customers to send, receive, and hold money with multiple accounts and IBANs, Hero simplifies the banking process for small businesses.
Key Features
- Aggregated financial services
- Multiple accounts and IBANs
- Payment cards
- Credit offering for immediate payment of invoices
Core Technology
Unlike many fintech startups that rely on banking-as-a-service partners, Hero has developed its own core banking system. This proprietary technology enables Hero to offer a seamless and integrated experience for its customers.
Payment Solutions
Retailers can easily integrate Hero's payment solution using an API, e-commerce platform plugin, or payment links. With competitive transaction fees starting at 0.4% + €0.15 per transaction, Hero's payment solution is an attractive option for businesses.
Credit Offering
One of Hero's primary revenue streams is its credit offering. By allowing customers to submit invoices for immediate payment, Hero helps businesses manage cash flow effectively. Customers can repay the credit within 90 days, with interest charges applicable.
Risk Assessment
Hero has developed a sophisticated risk scoring engine that analyzes both public and private data to assess clients. This enables Hero to make informed decisions about providing financing to customers while maintaining a secure financial ecosystem.
Funding
Having raised an additional €11.3 million in funding, Hero plans to expand its services and reach more small businesses. The investment from Valar Ventures and SquareOne underscores the confidence in Hero's innovative approach to fintech.
Future Outlook
As Hero continues to focus on in-house development and regulatory compliance, the company aims to differentiate itself in the competitive fintech landscape. The pending approval from the ACPR for payment services highlights Hero's commitment to meeting regulatory standards while delivering innovative financial solutions.
In conclusion, Hero's all-in-one banking product for small businesses represents a promising step towards simplifying financial services and empowering entrepreneurs to thrive in today's competitive market.
