European small and medium-sized enterprises face lengthy approval processes when applying for loans from traditional banks, processes that often fail to match the pace of modern business. According to available estimates, this leaves them with an annual financing gap of approximately €400 billion. Czech technology startup Flowpay is addressing this gap by making financing more accessible to SMEs. Driven by rapidly growing demand for this type of financing, Flowpay achieved a compound annual revenue growth rate (CAGR) of 816.31% over the past two years, securing 5th place in the Sifted 250 ranking of Europe’s fastest-growing startups. Earlier this year, Flowpay was also named the fastest-growing startup in the CEE and DACH region.

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“Our record growth reflects the enormous demand for working capital across Europe. Small and medium-sized businesses need capital to grow, but traditional banks are unable to meet their needs with sufficient flexibility. The latest ECB data from the second quarter shows that access to bank financing for SMEs has been deteriorating over the long term, while traditional banks are pulling back from lending. At Flowpay, we are filling this gap with technology that uses data to assess risk,” says William Jalloul, Founder and CEO of Flowpay.

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The strong demand for flexible financing is also reflected in Flowpay’s financial performance. Last year, the company generated more than CZK 300 million in revenue and had already surpassed that figure in the first half of this year. More than 10,000 businesses have applied for financing through the platform to date. Over the past two years, Flowpay recorded a compound annual revenue growth rate (CAGR) of 816.31%, earning it 5th place in the Europe-wide Sifted 250 ranking.

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Flowpay’s rapid growth is driven in part by demand among small and medium-sized businesses for faster and simpler access to financing. SMEs currently account for more than 99% of all businesses in Europe, yet they often face lengthy processes and strict regulatory requirements when dealing with traditional banks. Loan approval can take several months, creating a particular challenge for businesses that need to cover seasonal cash flow fluctuations or act quickly on growth opportunities.

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According to available estimates, this contributes to an annual financing gap of approximately €400 billion for European SMEs. Flowpay aims to address this gap through automated analysis of operational data using artificial intelligence. Its technology works with data from multiple systems, including point-of-sale systems and e-commerce platforms, enabling the company to assess a business’s financial position within minutes and without extensive paperwork. Businesses can therefore access working capital for inventory, marketing or further growth much faster.

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Flowpay’s momentum is also reflected in regional startup rankings. Earlier this year, the company took first place in Sifted 100: DACH & CEE, which ranks the fastest-growing startups across the region. Flowpay also sees Central Europe as a market with significant potential for further growth and the development of technology companies.

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“Europe’s technology sector has enormous potential, and we are showing that companies from our region can build products with both European and global impact. While the US and Western Europe are facing serious structural challenges and growing social and economic uncertainty, the outlook in Central and Eastern Europe is considerably more positive. Our region has tremendous momentum. The market is open to entrepreneurship, and companies here are growing on solid foundations and real revenues,” concludes William Jalloul, Founder and CEO of Flowpay.

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The Sifted 250 is a prestigious ranking compiled by European technology publication Sifted, backed by the Financial Times. It tracks the 250 fastest-growing startups across Europe. Unlike rankings based on the amount of investment capital raised, the Sifted 250 evaluates technology companies exclusively on their actual revenue growth over the past three financial years.

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