Global: AI fintech Duqu raises €1.5m to tackle Europe’s late payment problem

Amsterdam-based fintech Duqu has raised €1.5 million in a pre-seed funding round to help businesses access cash tied up in unpaid invoices and address the impact of delayed B2B payments across Europe.

The round was led by Curiosity VC and No Such Ventures. Duqu provides businesses with short-term advances against outstanding invoices while also developing an AI-powered underwriting platform for banks, lenders and leasing companies.

Duqu uses AI to unlock working capital

The fintech has developed an AI underwriting engine that automates around 95% of the credit assessment process. The latest funding will support the expansion of both its invoice financing platform and its technology for financial services providers.

Duqu co-founder Maas de Goede said the idea emerged after an entrepreneur he knew sought a loan while waiting for a customer to settle an outstanding invoice.

Although the business was financially healthy, its cash remained tied up in an invoice with a long payment term. According to Duqu, the situation reflects a broader challenge facing businesses, with Dutch companies paying 46% of their B2B invoices after the due date on average.

Late payments can leave businesses waiting weeks for cash they have already earned, even as they continue to meet payroll obligations and fund inventory, marketing and expansion.

Duqu seeks to address the gap by providing businesses with access to the value of an outstanding invoice shortly after it is issued.

Invoice advances without factoring

Duqu assesses outstanding B2B invoices and, based on its assessment, advances the invoice value to the business.

Unlike traditional factoring, companies do not sell their invoices and retain control of their customer relationships. There are also no minimum or maximum advance amounts, while businesses only pay a fee when they use the service.

Once approved, funds can be transferred within 24 hours and, in many cases, within an hour.

“Businesses can arrange almost everything instantly today, yet after completing the work they can still wait weeks to get paid,” said De Goede. “That no longer matches the pace at which businesses operate. Growth cannot wait for an invoice to be paid.”

AI expands access to smaller credit needs

Duqu said demand for short-term working capital has been strong since the platform launched. During its first three months of operation, the company processed more than €4 million in applications and provided more than €1 million in advances.

Curiosity VC said Duqu’s technology could help make smaller credit applications more commercially viable for lenders.

“Small applications are relatively expensive for traditional lenders to assess and process,” said Herman Kienhuis of Curiosity. “Duqu has built a fully AI-driven credit assessment and processing stack. As a result, businesses with smaller credit or working capital needs can be better served.”

The model is aimed at addressing a gap where traditional lenders may face relatively high assessment and processing costs compared with the size of the credit request.

Duqu targets wider financial services market

Beyond its own platform, Duqu is developing its proprietary AI underwriting technology as a white-label solution for banks, lenders and leasing companies.

The company has spent the past 18 months developing the engine, which currently automates about 95% of the credit assessment process. Its modular design allows financial services providers to deploy the technology while applying their own credit policies.

Thijn van Helvoirt of No Such Ventures said the technology could reduce the labour intensity associated with credit assessment, allowing lenders to process more applications without necessarily expanding their teams.

“Credit assessment is still a labour-intensive process for many providers. As a result, processing more applications often means hiring more people,” he said.

According to van Helvoirt, the technology could also be adapted for other areas of the credit market, including leasing, mortgages and buy now, pay later services.

With the new funding, Duqu plans to expand its financing solution for businesses while developing its AI underwriting infrastructure for broader use across the financial services industry.