Latvian fintech startup inGain announced that it has raised €650k in funding from venture capital funds Trind VC and Fiedler Capital, as well as from the Latvian Business Angels network and several business angels. This is the first publicly announced investment in Latvian startups this year. inGain offers a no-code SaaS loan management system to fintech companies, as well as other businesses that want to offer lending to their customers.
The Riga fintech aims to offer a no-code SaaS solution to enable companies in different industries to make their products more accessible to customers through lending. According to inGain, this is the way how to solve one of the biggest challenges in lending where traditional banks cannot offer lending solutions for specific products.
“Let’s take one of our clients as an example. It is a store chain in Switzerland that sells various expensive musical instruments. The most popular product is the piano. Some parents are ready to buy a piano, but what happens if they spend several months trying to persuade their kids to play the piano, but their kids still refuse to play it?” said inGain co-founder and CEO, Armands Liseks.
“It is with this kind of situation in mind that the seller would like to offer piano leasing. For parents, this means that the payment for the musical instrument will be higher. However, this also gives them two options – either the piano is eventually purchased in full or can be returned to the seller at any time. What happens if a potential buyer visits a bank and informs that he would like to buy a piano? How can the bank offer leasing for the piano? Most likely it will advise the customer to use a credit card or take out a consumer loan with 20% interest, which makes no sense whatsoever,” added Liseks.
inGain plans to use the money to finish work on a no-code self-service platform where every interested company could create a lending tool that best suits their products and specific needs.
“We have invested in a great product with a sound team behind it,” said Reima Linnanvirta, a partner in the lead investor Trind VC. “The inGain team has an extensive background in the industry, and they understand the customer pain points exceptionally well. When reviewing the product, we were impressed by how extensive the product was and how the team has been able to transform something that is generally done as custom development into a no-code SaaS solution. As the existing solutions on the market are very old-fashioned, we believe that InGain is well-positioned to disrupt and secure a significant share of that market.”
