One of the leaders in the MarTech industry, Mitgo Group, has made the first tranche of investment in its recently launched fintech business, Capy. This investment will be the initial step in a 20 million dollar investment package planned for the coming 3 years. The first investment tranche will go towards developing the initial version of the platform with a focus on early and accelerated payment solutions.
Back in Q1 2024 Mitgo Group announced the launch of fintech services for publishers of the affiliate market – cashback-services, media buyers, loyalty programs, BNPL services and many others. The new direction was planned to be launched on the basis of the recently acquired embedded finance platform Embedded, whose team has extensive experience in fintech. Since the acquisition, the business has received additional funding and comprehensive support and has been relaunched as Capy within Mitgo Group’s global holding company, which already has more than 15 businesses under its wing.
According to conservative estimates, affiliate marketing spend reached $14.4 billion in 2023 and will exceed $15.7 billion this year. In the next three years, Mitgo Group 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 investment in Capy is aimed at realizing this plan as soon as possible. The first solutions will be launched in the third quarter of 2024.
The first version of the service will focus on early payout products, one of the biggest growth points in the affiliate industry right now. Despite substantial and ever-growing revenues, publishers remain in the underbanked zone, as classic financial institutions lack the expertise to fairly score such customers and can’t offer them a proper variety of products. Financial institutions are missing out on billions of dollars in profits on this customer segment, while publishers are unfairly limited in growth acceleration opportunities. Mitgo Group and Capy will be able to solve both problems through their solutions and mediator role.
How Fintech is Shaping the Future of Accounts Payable(Opens in a new browser tab)
Long wait for payments is another sore spot for the affiliate industry at the moment, so naturally solution to this issue will be the second priority. Capy’s suite of solutions based on embedded finance technology and Mitgo Group’s 15+ years of experience in this market will reduce payment terms from the current industrial average of 60-120 days to just one day. Implementation of these technologies will lead to explosive growth of the partner market and multiple growth of profits of its participants due to accelerated capital turnover.
Leading financial institutions have already recognized the enormous potential of these solutions. Right now, Capy is in talks with a number of major players in the financial industry – banks, payment systems, e-wallets and others. Partnerships with financial market leaders in Europe, North America and other key regions will be announced soon.
As Capy engages in discussions with key financial market players worldwide, including banks, payment systems, and e-wallet providers, the future looks promising for a more efficient and profitable accounts payable ecosystem. Stay tuned for groundbreaking developments as Mitgo Group and Capy pave the way for a transformative shift in the financial services landscape.
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