Enfuce is a leading global fully cloud-based card issuer and payment processor. They enable any business to start issuing payment cards for both consumer and business payments. Founded in 2016 by Monika Liikamaa and Denise Johansson. Monika, once a prison guard and taxi driver, turned down a Managing Director role at a financial services company, instead offering to provide their infrastructure, which she does, through Enfuce; Denise left her senior position at a Finnish bank to set up Enfuce.
Enfuce serves 16 million cardholders globally and processes €2 billion annually. Aside from Enfuce’s core business, Enfuce is known for its dedication to building a workplace that champions diversity, equality, and inclusion – 50% of managerial roles are held by women in a team of over 120 employees in offices in Finland, Germany, Sweden, and the UK, representing 20+ nationalities.
We caught up with Monika and Denise about Enfuce, being female founders and CEOs, getting more women in fintech, and the future of Enfuce and fintech.
Excited to chat with you both and learn more about your journeys and Enfuce. How are things currently going at Enfuce?
It’s almost scary to say out loud, but things are going very well at Enfuce. We’re proud to be that odd Fintech that not only entered the market with a strong footing but also turned profitable and distributed dividends within our first two years of operations. It’s a testament to our unique approach and the dedication of our team.
Currently, our primary focus is on steering towards profitability once again and continuing our mission of being the go-to strategic partner for revolutionising payment flows and transformative business growth. The past year has provided us with valuable insights and the feedback we have had from our partners has been overwhelmingly positive, reaffirming that we are on the right trajectory.
Beyond collaborating on some of the most innovative payment solutions in the world, and building on our ESG commitment, we recently underwent a significant rebranding effort to better reflect our Nordic identity, collaborative approach and dedication to delivering exceptional customer experiences. We’ve also expanded to the UK market, and we have since partnered with some of the most innovative companies in the region, such as Funding Circle, the leading SME lending platform in the UK, to launch credit cards for small businesses right across the country. It’s an exciting and unique journey that we’ve had so far and one that promises even more in the future.
Could you tell us about your ESG initiatives? How are you planning to achieve Net Zero by 2040?
As a Nordic company, everything we do is underlined by transparency and integrity, and a dedication to improving our customers’ lives while giving our planet a helping hand. That is why our ESG principles stand at the very core of our company’s vision and mission.
We signed up to the Climate Pledge and committed to achieving net zero by 2040 because we recognise our responsibility to the planet, to future generations and to those suffering the effects of environmental destruction. There is an imperative to address the environmental crisis, it is no longer a matter of debate. We all have an obligation to act.
On our path towards net zero, awareness has been the first step. Over the past three years, we have diligently measured our carbon footprint. Secondly, we are committed to mitigating the impact of our most significant emission sources. In fact, in 2021, we offset our entire output of 461 metric tonnes of CO2 emissions.
Beyond changing internally, this requires us to put pressure on our existing partners to adopt sustainable practices, while also seeking new partnerships with entities that share our net zero commitment. Meaningful change requires a concerted effort to alter both individual and collective behaviours and we are committed to leading by example.
What are some of the challenges you faced while scaling Enfuce? How have you navigated them?
We face challenges almost every day. Not being afraid to face challenges head-on is an essential part of building and scaling a company.
One of the early and significant challenges we faced was the sudden impact of the pandemic. It was a time when we were in the early stages of building a sales team and actively working on a sales pipeline. We went from having promising conversations to losing almost all active engagements within a few weeks. We were also uncertain about existing customer portfolios and how these would be affected by the pandemic. Despite these difficult times, we were able to push through and grow throughout 2019 and 2020.
Another challenge has been scaling our team from the original 5 people to up to 150 employees and navigating the inevitable bumps along the way. Undoubtedly we have had costly setbacks – both in terms of time and resources – but we always try our best to use challenges as learning experiences.
It has certainly been a formidable journey, filled with both expected and unforeseen hurdles. The resilience and adaptability we’ve demonstrated as a company have been crucial in overcoming these obstacles.
You raised one of the highest ever for a female-founded startup in your last round – €45 million in Series C funding. The proportion of funding raised by women-only teams has dropped from 3% to 1% since 2018. Could you tell us about how you navigated fundraising for your last round?
During our Series C, we found ourselves in the fortunate position where investors were actively seeking to invest in our venture. We attribute the success of that round to our steadfast understanding of unit economics and our unique founder stories, which created very early interest in our business. In earlier funding rounds we sought guidance from advisors who created a story that we found challenging to embrace as our own. By the time Series C came around, we had realised no one could articulate our story as authentically and passionately as we could and we decided to lead the entire fundraising round ourselves. It allowed us to directly engage with investors, sharing our journey, highlighting the value we were creating, and showcasing the potential for growth. This hands-on approach not only provided a more personal connection with potential investors but also ensured that the narrative was conveyed with the depth and authenticity that only the founders could bring.
Investors saw not only the financial viability of our business but also the strategic vision and execution capability of the team. This combination of financial acumen and a compelling narrative made Enfuce an attractive proposition in a market where female-founded startups face significant challenges in securing funding.
As female co-founders and female co-CEOs, we are interested in learning from both of you about being in a leadership position as a female, and also as a female founder. How can women navigate gender-based limitations to become founders and CEOs?
First and foremost, it’s crucial not to be your own biggest blocker. Women often find themselves meticulously planning for the future, which can be both a strength and a potential hindrance. While it’s important to have a strategic vision, it’s equally vital to be present in the moment. Decisions with significant short-term and long-term impacts can be daunting, but waiting for the perfect moment might mean missing valuable opportunities. Embrace the uncertainty, take calculated risks, and remember that the future is unpredictable. Things have a way of working out, whether we stay where we are or take that leap of faith.
Secondly, it’s essential to recognise that leadership is not confined by gender. Exceptional leaders come in all forms, and there is no predetermined mould that one must fit into. Instead of trying to meet perceived expectations, focus on creating the best version of yourself. Stay true to your values and lead in a way that aligns with your authentic self. The best leaders are those who are genuine, and compassionate, and inspire others by being true to their principles.
Lastly, don’t shy away from uncomfortable conversations. If you sense there is an elephant lingering in the room, address it directly. If someone has an issue with your gender or holds biases, confront them openly and make them say out loud what is bothering them. Encourage a culture of transparency and straight talk. Or as we call it, “no a**hole policy”.
From your perspective, how do you think we can get more women into fintech? What are some practical steps you have taken at Enfuce to bring more women into fintech?
Diversity and representation are of paramount importance to us. Having visible and successful women in leadership positions within our company is a powerful way to inspire others. That is why women hold 50% of managerial positions here at Enfuce.
Admittedly, encouraging more women to join the fintech industry is a challenging task, but at Enfuce, we believe in leading by example and actively engaging with communities to foster diversity. One practical approach we’ve taken is to be present and involved in various initiatives and educational programs. We’ve participated in a whole range of events from ‘coding school for 7-year-old kids’, to attending high school graduation speeches, to taking part in mentoring programs for entrepreneurs in universities. By engaging with students at different stages of their education, we aim to demystify fintech and showcase it as an inclusive and exciting career option for women. Early exposure helps break down stereotypes and encourages young girls to consider fintech as a viable and interesting field.
Internally, we are passionate about promoting a culture that values diversity and inclusion. New employees at Enfuce undergo an onboarding programme including sessions explaining company culture, ESG policies, and DEI strategies and committees. This ensures all of our team members work from the same page, and enables a workplace that fosters care, respect, and equal opportunity.
Let’s talk about the fintech industry. In the next 5 years, what does the future for payments and fintech look like?
Above all else, we anticipate a significant shift towards more sustainable and value-driven financial services.
The Fintech industry experienced a notable boom and a lot of hype, where the focus was primarily on having a flashy app and accumulating registered users, without much concern for unit economics. That time, however, is now well behind us.
Recent experiences, such as the collapse of some financial institutions, have reminded consumers of the importance of stability in their banks. This has led to a shift in consumer behaviour, moving from a phase of rapidly switching between financial services providers to a more considered and loyal approach. Consumers are becoming more protective of their economic stability and are placing a higher value on reliability and trustworthiness in financial services.
At a time when companies are struggling to achieve a huge inbound of consumers, they need to focus on the real value they can bring to their existing customers. They need to do this in a sustainable manner by ensuring they not only meet the immediate needs of consumers but also contribute to their long-term financial well-being. This can only be seen as a healthy evolution in the industry!
You work and partner with a bunch of fintechs across the European fintech ecosystem. What are some fintechs or payment startups in Europe that you are excited about?
For us, we need to be able to come to work and believe that we can make the world a better place, so from day one, it has always been crucial that we only partner with like-minded companies that align with our values and contribute to positive change. To name a couple of examples, we collaborated with the Finnish app and card issuer Epassi, payment network Visa, and aid initiative Welcome.Place, to launch our First Aid card last December. This delivered prepaid payment cards to Ukrainian refugees arriving in France. With this, we managed to cut the financial inclusion period for refugees from 5 years to just twelve months. Earlier this year, we also partnered with Neobank Science Card to launch the UK’s first debit cards dedicated to accelerating vital scientific research for cancer, climate science and more.
The joint core belief that we, as companies in the fintech ecosystem, can contribute to making the world a better place drives all of our collaborations and partnerships. It’s not just about business success; it’s about creating a legacy that our future generations can be proud of. When our children grow up, we want them to look back and see that we used our skills, resources, and partnerships to make a meaningful impact on the world, leaving a positive legacy for the generations to come.
What’s next for Enfuce?
At Enfuce, our vision for the future is ambitious, and we often refer to it as ‘world domination’. However, we are fully aware that achieving such an ambitious goal requires a strategic and methodical approach. As the great Desmond Tutu once wisely said: “There is only one way to eat an elephant: one bite at a time.” This philosophy guides our next steps as we continue to grow and evolve, focusing on incremental progress and thoughtful expansion.
In the immediate future, though, we aim to expand our presence strategically, both geographically and in terms of the services we offer; develop new and improved financial products and services that address the evolving needs of our clients and the broader market; and continue to integrate sustainable practices into our operations and explore innovative ways to contribute positively to environmental and societal challenges. Enfuce’s journey is not about shortcuts but about building a legacy of positive impact in the world of fintech, one card swipe at a time.
