Poland’s BidFinance raises €1.6M to expand its debt trading platform and enter Nordic markets

Warsaw-based BidFinance, a fintech startup and creator of an auction platform for trading debt portfolios, has secured €1.6M in funding.

The round was backed by venture capital funds 4growth VC, FundingBox, and a group of business angels. 

The funds will allow BidFinance to expand its presence in the Polish market and grow its operations internationally, with a focus on developing its debt trading process.

Tomasz Biłous, Managing Partner at 4growth VC, says, “Investing in BidFinance aligns perfectly with our investment strategy. The company has developed a solution that not only digitises but also significantly improves the efficiency of existing debt portfolio sales processes. Moreover, it has been positively validated by the market. We believe that this technology, combined with an ambitious team, gives the company the opportunity to become an international category leader.”

Tomasz Mazuryk, Managing Partner at FundingBox Deep Tech Fund, adds, “The company’s past performance validates the auction platform’s assumptions for debt portfolios in the Polish market.”

“BidFinance’s solution has been very well received by both sellers and buyers. The company is now entering the next phase of development in international markets. We strongly believe in and support BidFinance’s ambition to become a regional champion.”

An auction-based B2B debt portfolio marketplace

Founded in 2022 by Zhenia Karastyanov, BidFinance has launched a solution in Poland that digitises and standardises the process of trading debt portfolios. 

The platform links sellers such as banks, loan companies, telecoms, leasing firms, and energy companies with buyers like collection agencies, investment funds, and law firms. 

Using an auction model, the platform supports clearer transactions, helps sellers achieve higher sale prices, and makes it easier for buyers to participate.

Founder, Karastoyanov, says, “The key advantage of our solution over the traditional debt portfolio sales model is the maximisation of the seller’s price.”

“One of our clients previously sold its debt portfolios at an average of 15 per cent of their value. After listing the portfolio on our platform, the price increased to 26 per cent. So far, the maximum added value to the portfolio’s starting price during an auction has exceeded 80 per cent.”

“This is made possible by providing sellers with access to the entire buyer market; our platform has nearly the entire debt portfolio buyer industry registered. Additionally, conducting real-time auctions creates a competitive environment where buyers genuinely compete for the offered debt portfolio,” adds Karastoyanov.

Since its launch, the company claims to have completed over 70 transactions, with listed debt portfolios totalling over PLN 1.2B (nearly €280.15M). Nearly 70 buyers are currently active on the platform, covering 90 per cent of the market.

Capital utilisation

BidFinance plans to expand into the Nordic countries, where unsecured debt sales reach €8–10B each year. 

The company aims to begin generating international revenue in 2025 through ongoing collaborations with European partners. By 2028, BidFinance expects the Polish market to contribute 20 per cent of its total revenue.

BidFinance founder, Karastoyanov, says, “The secured funding will enable further platform development and significantly scale our operations in Poland. We are also intensively preparing for international expansion – we will conduct the first auctions outside the Polish market in the second quarter of this year.” 

“We are excited about collaborating with the 4growth VC team. Having an investor with a banking and insurance background will strengthen our credibility and market position. We also see numerous business synergies: we fit into the fund’s strategy of investing in fintech. We appreciate the financial and international experience of the 4growth VC management team.”