Sokin has recently closed a funding round, securing $50 million as part of the ongoing boom in B2B fintech. This milestone highlights the growing appeal of businesses offering tailored financial services to other companies, as opposed to consumer-focused solutions. The rise of B2B fintech is not just a random occurrence. It represents an industry responding to global businesses’ demand for more efficient and scalable payment platforms.
A Business-First Approach to Fintech
Sokin, headquartered in London, has made a name for itself in the financial technology world as a subscription-based global payments platform. Instead of focusing on individuals, its services aim to streamline transactions for businesses and enterprises, offering tools that manage international money transfers alongside multi-currency accounts.
The funding round, led by Prysm Capital and Watershed Ventures, further included contributions from prominent backers like Morgan Stanley Expansion Capital. With this capital injection, the company now holds a valuation of approximately $300 million. Sokin’s CEO, Vroon Modgill, emphasized that the funds will primarily be used to strengthen regional partnerships in emerging markets and enhance product features that support accounts payable and automation for businesses operating across borders.
Why B2B Fintech is Attracting Investors
Business-focused fintechs have outpaced consumer-focused models in attracting funding in recent years. Data shows that B2B firms worldwide raised $17 billion since early 2024, doubling the $7.8 billion garnered by consumer fintechs. The explanation? Investors understand B2B fintech models are less prone to fluctuating demand compared to consumer platforms, as they directly address operational bottlenecks that many companies face.
Sokin’s focus on subscription payments, which guarantees steady revenue, and its ability to support growing businesses indicate long-term reliability to investors. The company also plans expansion into markets like South America and Asia, regions where demand for cross-border transactions continues to rise.
Common Mistakes Fintech Entrepreneurs Should Avoid
For founders looking to emulate Sokin’s success, it’s critical to sidestep common pitfalls:
- Neglecting Compliance: Fintech thrives where trust exists. A lack of appropriate legal frameworks, especially in international markets, can halt growth entirely.
- Overextending Resources: Expanding too quickly before securing a strong foundation can result in operational chaos rather than success.
- Ignoring Client Feedback: Businesses use fintech to solve problems specific to their operations. Without hearing their needs, innovation risks becoming irrelevant.
- Focusing Only on Revenue: Growth can't be sustained long-term if core product issues or customer dissatisfaction aren't routinely addressed.
Steps to Launch a Sustainable Fintech Startup
If you’re just stepping into fintech, here’s a simple blueprint:
- Identify gaps in financial services within B2B sectors. For example, consider industries plagued by inefficiencies in payments or accounting systems.
- Ensure regulatory compliance in each region before launching services. Building relationships around transparency with regulators goes a long way.
- Develop scalable subscription-based models. Stable cash flow from subscription payments helps bypass risks associated with a reliance on transactional revenue.
- Test functionality with pilot partners and gather structured feedback. Small tweaks made early can prevent major disruptions later.
- Secure funding strategically. Beyond venture capital, institutional investors like Morgan Stanley often offer credibility that attracts additional funding rounds.
Insights Into Sokin’s Unique Position
Sokin’s regional partnerships highlight the importance of tailoring solutions locally. Their decision to focus heavily on Asia and South America comes as no surprise, these regions are ripe for digitalization in finance, yet underserved by large global payment networks. Businesses operating in these areas face rising cross-border transaction costs and long processing times, problems Sokin is well-suited to tackle.
Another critical aspect of its growth lies in Sokin’s incorporation of e-commerce payment gateways. By enabling businesses to process payments more efficiently online, they cater directly to the shift toward digital-first commerce, a priority for companies worldwide.
Conclusion
B2B fintech is reshaping global payment networks, and Sokin is leading this charge through innovative subscription models and market expansion. Entrepreneurs entering fintech should learn from the platform’s calculated approach to growth. Ensuring scalability, regional focus, and compliance can make all the difference in gaining investor trust and cornering the market.
For more details about Sokin and its services, visit Sokin’s website. It’s setting a high bar, but it’s also offering an open invitation for innovators to rethink what’s possible in global finance.
FAQ
1. What is Sokin?
Sokin is a London-based fintech company offering subscription-based global payments services with features like multi-currency accounts and international money transfers for businesses.
2. How much funding did Sokin recently secure?
Sokin raised $50 million in its latest funding round, led by Prysm Capital and Watershed Ventures, with contributions from Morgan Stanley Expansion Capital.
3. What is Sokin’s current valuation?
Sokin is now valued at approximately $300 million.
4. What will the funds be used for?
Sokin plans to use the funds to expand regional partnerships in emerging markets, enhance product features, and support businesses with cross-border operations.
5. Why are B2B fintech companies attracting more investors than consumer-focused fintechs?
B2B fintechs address operational bottlenecks for businesses and offer scalable solutions, making them more stable and reliable for long-term growth compared to consumer-focused fintechs.
6. What regions is Sokin focusing on for expansion?
Sokin plans to expand into South America and Asia, where demand for efficient cross-border transactions is growing rapidly.
7. What are some advantages of B2B fintech models?
B2B fintechs benefit from steady revenue through subscription models and are less affected by fluctuating consumer demand.
8. What are common mistakes fintech startups should avoid?
Fintech startups should avoid neglecting compliance, overextending resources, ignoring client feedback, and focusing only on revenue without addressing product and customer satisfaction issues.
9. What steps should aspiring fintech entrepreneurs follow to build sustainable startups?
Entrepreneurs should identify gaps in B2B financial services, ensure regulatory compliance, develop scalable subscription models, test functionality with pilot partners, and strategically secure funding.
10. How is Sokin addressing regional financial challenges?
Sokin aims to streamline cross-border transactions, reduce costs, and improve processing times for businesses in underserved regions like Asia and South America.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.