Embedded Finance: Fast-Tracking SME Funding Across Europe

PragmaGO’s roots go back to two companies: Premium Financial Group, founded in 1996, and Pragma Inkaso, established in 2002. Premium Financial Group was listed on Warsaw Stock Exchange in 2007 and Pragma Inkaso on the Warsaw Stock Exchange and Catalyst in 2010. The merger in 2011 created a strong non-banking financing platform. The acquisition of Mint Software in 2016 added a powerful IT backbone. After rebranding to PragmaGO in 2020 and introducing embedded finance, growth accelerated with a private equity investor in 2021 and partnerships including Allegro, Nexi, Netopia, PayU, Glovo and cooperation with EBRD. Expansion continued in 2022 and 2023, followed by entry into Romania in 2024 through the acquisition of Telecredit IFN S.A. We also opened two new companies in Spain and Croatia, where we already have our first partners who have implemented our lending solution. In 2025, the company reached a record year with over 3 billion PLN turnover and more than 150 employees. Vjačeslav Lypko not only leads international expansion but also takes operational roles in new markets, including President of the Romanian entity, board member in Spain and Croatia, and responsibility for M&A and integration. 

A digital lending model for micro-businesses

PragmaGO operates with factoring and embedded finance, both highly digitalized, with factoring processes in parts fully digital and in others supported by human expertise, while embedded finance drives growth. “Embedded finance is a fully digital, automated lending solution designed specifically for SMEs,” says Vjačeslav Lypko. At its core are Merchant Cash Advance solutions alongside BNPL for businesses. The focus is strictly on B2B, particularly micro-enterprises and sole traders. While the model is fundamentally sector-agnostic, it serves businesses across retail, horeca, travel, accommodation, e-commerce and omnichannel. Loans start at around 750 EUR and can reach up to 150,000 EUR depending on the market, with automated credit decisions in as little as 90 seconds. Repayment is linked directly to daily transaction volumes, with typical terms of four or twelve months. Around 23,921 clients were financed in Poland alone in 2025. The system is powered by proprietary technology, including a credit engine and integrated widget, and supported by an in-house IT team of over 40 specialists. “We are not competing with banks; we are serving a segment that banks cannot efficiently address,” says Vjačeslav Lypko. The company positions itself as a leading player in embedded finance in its region, with partners choosing it for its scalability, technology, track record and funding strength. Its diversified funding base includes listed debt, EBRD, credit funds and banks, some of which act as refinancing partners. Beyond financing, PragmaGO actively supports partners with campaigns, webinars, landing pages and merchant education, helping them acquire and retain customers and positioning itself as a true platform and growth partner.

Expansion, resilience and ­responsibility

International expansion is a key pillar of the strategy. Romania was the company’s first foreign market. Spain and Croatia are being developed. Portugal is also under evaluation, although it is more complex from a regulatory perspective. In parallel, additional European markets are being explored. The goal is clear: to build a pan-European embedded-finance platform. “Our mission is to ensure fast and fair access to funding for SMEs across Europe,” says Vjačeslav Lypko. Market disruptions have reinforced this mission. While COVID-19 initially created uncertainty, digitalization and e-commerce growth boosted demand. After subsidies ended and during inflation and energy crises, stricter bank lending increased demand for alternative financing, creating additional opportunities for PragmaGO. At the same time, the group focuses on sustainability and governance, publishing ESG reports and ensuring transparency through its capital-market and investor structures. Environmental initiatives include protected forests, bee projects, renewable energy use, hybrid cars and solar installations. The company also emphasizes employee well-being, covering physical and mental health, measuring satisfaction, addressing the gender pay gap, supporting women returning after childbirth and implementing structured recruiting, onboarding and transparency policies. Rather than promoting AI as a buzzword, PragmaGO relies on automation and data-driven decision-making. Its position is further underlined by recognition such as the Financial Times FT1000 ranking, where it was the only Polish financial company listed, as well as being a finalist for two consecutive years at the MPE Conference in Berlin and receiving multiple fintech awards. “In the long term, we aim to build a truly pan-European platform for embedded finance and become a key partner for SMEs across Europe,” says Vjačeslav Lypko. With its combination of technological innovation, strong partnerships and a clear focus, PragmaGO is laying the foundation for sustainable growth and long-term financial access for small businesses across Europe.