Mitgo Acquires UAE’s Fintech Platform Embedded

As part of its plans to enter the financial services market, Mitgo Group, the Germany-based marketing technology (Martech) tech firm, has acquired the UAE-based finance platform Embedded, which has extensive experience in fintech and will complement Mitgo’s technology stack needed to enter a new market.

Though the financial details of the deal were not disclosed, Mitgo said it will support plans to launch a new business division – fintech services for affiliate publishers.

According to estimates, affiliate marketing spending reached $14.4 billion in 2023 and will exceed $15.7 billion this year. In the next three years, Mitgo plans to become a conduit for more than 7% of that transaction volume, which can be valued at more than $1.5 billion given the sector’s growth.

“In the next three years, Mitgo plans to become a conduit for more than 7% of that transaction volume, which can be valued at more than $1.5 billion, given the sector’s growth,” the company said.

The new division, which will feature a set of solutions from the field of embedded finance, will enable publishers with a specific focus on underbanked audiences in MENA, APAC and LATAM regions to withdraw their earnings instantly instead of the standard waiting period of 60 to 120 days, which is currently a benchmark in affiliate marketing.

They will also get access to loans, reduce transaction costs, reduce exchange commissions, improve transaction speed, and get many other benefits. Last year, Mitgo Group successfully tested similar financial solutions within its businesses.

Access to obtaining loans and other lines of financing will be one of the main advantages for publishers, as currently it is extremely difficult for them to open a credit line in standard financial organisations as the existing solutions on the financial market often don’t recognise the specifics of publishers’ businesses. It causes a lack of availability of financial products for publishers, who are mostly SMBs.

Low-Risk Portfolio

Mitgo Group’s 15 years of experience in the affiliate marketing market while working with more than 100,000 active partners, as well as unique algorithms using AI and machine learning, allow the company to accurately assess such borrowers and build a low-risk but very profitable loan portfolio from them.

The embedded finance solutions allow leaders of the financial industry, major banks, payment systems, e-wallets and others, to expand their portfolio of customers and niche products in areas and countries that were previously too expensive and risky for them to enter.

Mitgo Group’s new business direction will become a guide to the vast world of affiliate marketing for selected partners from the circle of the largest fintech organisations. In the coming years, the company plans to establish cooperation with the leading players in this market – global payment schemes and the world’s largest financial institutions.

With the help of the company’s experts, they will have access to previously undiscovered potential, including millions of users and tens of billions of dollars’ worth of transactions that previously passed under the radar of financial organisations.

Alexander Bachmann, founder and CEO of Mitgo Group, said that on top of other viable opportunities, their future partners from the financial industry will get an excellent test site on the basis of a new market and a vast system of distribution of financial products among the audience of publishers.

“They include cashback-services, media buyers, loyalty programmes, BNPL services, and many others. With our help, they will be able to offer a suitable set of solutions to hundreds of millions of their users around the world,” Bachmann said.

The new business direction will be led by Oleg Chanchikov, CEO and founder of Embedded, which is going to be acquired by Mitgo. Oleg has more than 20 years of experience in the IT and financial markets.

According to Oleg, the entire world, including global players in the financial market and international organisations such as the UN and World Bank, are working to empower SMBs and make financial services more accessible for them.

Embedded finance solutions help the market grow not just from the top-down approach when a bank offers pre-defined products to its clients, but also from the bottom-up when the industries themselves use financial products to solve the needs and the problems in their core business.

“I believe, together with Mitgo Group, we will not just change the way the MarTech industry uses financial products but introduce revolutionary solutions that will change the whole market,” he added.