Embedded finance has quietly become one of the most transformative layers in small-business growth.
What began as a fintech experiment — integrating payments or credit into non-bank platforms — has evolved into a global movement redefining how SMBs access and use financial tools.
From the U.S. to Europe to India, startups are building infrastructure that lets any software product become a financial product — enabling instant lending, smart payments, and seamless banking within everyday business apps.
These startups aren’t just integrating finance; they’re rebuilding how small businesses operate, transact, and grow.
Here’s a look at the Top 10 Embedded-Finance Startups leading that change — their founders, investors, and next moves.
1. Stripe (USA) — “Infrastructure for the Internet Economy”
What they do: Stripe powers global embedded payments, lending, and banking APIs for internet businesses and SMBs.
Founders: Patrick Collison, John Collison.
Funding / Investors: Over $9 billion raised from Sequoia Capital, Andreessen Horowitz and others.
Why it matters: Stripe gave SMBs direct access to enterprise-grade financial rails — turning developers into fintech builders overnight.
Next moves: Expanding embedded lending and treasury solutions for global SMB platforms.
2. Plaid (USA) — “Connecting fintech to every account”
What they do: Plaid’s APIs connect apps to user bank accounts, enabling embedded payments, lending, and financial insights.
Founders: Zach Perret, William Hockey.
Funding / Investors: Raised over $700 million from Index Ventures, Kleiner Perkins and Andreessen Horowitz.
Why it matters: The backbone for thousands of fintech and SaaS platforms — Plaid makes financial access possible for even the smallest players.
Next moves: Launching SMB-focused financial intelligence layers and expanding to Asia-Pacific and the Middle East.
3. YAP (UAE) — “Digital banking for every business”
What they do: A UAE-based platform offering digital banking, virtual cards, and payment rails to SMBs across the Middle East.
Founders: Marwan Hadi, Ananya Tiwarri, and Rasha Abdulla.
Funding / Investors: Raised over $45 million from Emirates NBD and global fintech investors.
Why it matters: YAP is leading embedded finance in emerging markets — enabling small businesses to manage banking, payroll, and spend from a single app.
Next moves: Expanding into Saudi Arabia and Egypt with SMB credit and invoice financing features.
4. M2P Fintech (India) — “APIs powering the future of financial products”
What they do: M2P provides APIs for cards, lending, payments, and BNPL — helping software companies embed finance without building from scratch.
Founders: Madhan Swaminathan, Prabhu Rangarajan, and Aishwarya Ravichandran.
Funding / Investors: Raised $110 million from Tiger Global and Insight Partners.
Why it matters: India’s fintech backbone — M2P helps businesses add lending and card products in weeks, not months.
Next moves: Scaling embedded credit solutions for SMBs and expanding into the Middle East and Southeast Asia.
5. Weavr (UK) — “Plug-and-play finance for platforms”
What they do: Weavr enables companies to embed banking, payments, and cards directly into SaaS and marketplace workflows.
Founders: Alex Mifsud and Michael Galvin.
Funding / Investors: Raised $55 million Series A led by Tiger Global.
Why it matters: Democratises fintech infrastructure — making embedded finance as easy as adding a plugin.
Next moves: Launch U.S. operations and expand sector-specific solutions for retail and B2B marketplaces.
6. Razorpay (India) — “Full-stack finance for the digital economy”
What they do: Razorpay has grown from a payment gateway to a complete financial infrastructure provider for SMBs — offering lending, banking, and payroll within its suite.
Founders: Harshil Mathur and Shashank Kumar.
Funding / Investors: Over $700 million raised from Sequoia Capital and GIC.
Why it matters: Razorpay helps millions of Indian businesses embed finance in daily operations — from collecting payments to accessing credit instantly.
Next moves: Building embedded banking tools for SMBs and expanding deeper into the GCC market.
7. Railsr (UK) — “Banking-as-a-service for modern platforms”
What they do: Railsr offers embedded financial products — cards, accounts, loans — for brands and platforms.
Founders: Nigel Verdon and Clive Mitchell.
Funding / Investors: Raised $187 million from Visa and Anthos Capital.
Why it matters: Provides plug-in financial infrastructure for SMBs and fintechs across Europe.
Next moves: Focusing on SME lending and embedded credit lines in B2B platforms.
8. Tuum (Estonia) — “Composable banking for the modern SME”
What they do: A modular core banking platform allowing fintechs and non-banks to embed lending, accounts, and payments.
Founders: Vilve Vara and Andres Kitter.
Funding / Investors: Raised $25 million led by Portage Ventures.
Why it matters: Built for SMBs — Tuum helps software firms add banking features that feel native.
Next moves: Partnering with European neobanks and launching SME finance modules.
9. FinBox (India) — “Credit and risk infrastructure for embedded lending”
What they do: FinBox offers credit decisioning APIs and lending tools that power BNPL and credit for SMBs.
Founders: Anand T and Raj Kumar.
Funding / Investors: Raised $15 million from A91 Partners and Arkam Ventures.
Why it matters: It’s the data engine behind many India’s fastest-growing fintechs — helping SMBs access credit within apps they already use.
Next moves: Expanding into the Middle East and building AI-driven credit scoring for underserved SMEs.
10. Unit (USA) — “Build financial features faster”
What they do: Unit offers a developer-first platform for companies to embed bank accounts, cards, and loans within their apps.
Founders: Itai Damti and Doron Somech.
Funding / Investors: Raised $169 million from Insight Partners and Accel.
Why it matters: Unit lets any startup add banking without needing a bank license — the true essence of embedded finance.
Next moves: Expanding into SMB lending and cross-border payment modules.
How Embedded-Finance Startups Are Reshaping SMB Growth
Finance becomes invisible. SMBs no longer seek banks — finance now meets them inside the software they already use.
APIs are the new rails. Every startup here turns complex financial infrastructure into simple developer interfaces.
SMB-first lending is the next frontier. Embedded credit is unlocking growth for millions of businesses underserved by banks.
Global shift toward partnerships. Traditional banks are collaborating with these startups rather than competing.
Data drives personalisation. Embedded finance is evolving from transactions to insight-led business decisions.
Final Thoughts — Where McArrows Fits
Every embedded-finance startup faces the same post-funding challenge: turning infrastructure into traction.
You can build brilliant APIs and still struggle to reach the right audience — because distribution and narrative now matter as much as technology.
At McArrows, we work with fintech and embedded-finance companies to bridge that gap — translating deep tech into clear storytelling, market strategy, and growth systems that drive adoption.
If you’re building financial infrastructure for SMBs or looking to scale your platform beyond code, book a meeting with us. We’ll help you orchestrate your product, marketing, and go-to-market into one coherent growth motion.
