Finom, a European challenger bank aimed at SMEs and freelancers, has successfully raised €50 million ($54 million) in a Series B equity round of funding. This substantial investment is a testament to the growing demand for financial services tailored to small and medium-sized enterprises (SMEs) in the European market.
Key Takeaway
Finom, a European challenger bank, has secured $54 million in Series B funding to further enhance its suite of financial services for SMEs across the European Union.
Empowering SMEs with Seamless Banking Solutions
Founded in the Netherlands in 2019, Finom offers a streamlined process for businesses to open online bank accounts and obtain International Bank Account Numbers (IBANs) to facilitate cross-border transactions. In addition to this, customers gain access to physical or virtual bank cards, expense management tools, and seamless integration with accounting software, providing a comprehensive suite of financial solutions.
Addressing the Unique Needs of SMEs
Yakov Novikov, co-founder and co-CEO of Finom, emphasized the challenges faced by SMEs in traditional banking environments. He highlighted the limited product offerings and the perception of SMEs as ‘uninteresting’ for traditional banks due to compliance risks and restricted lending opportunities. Finom aims to bridge this gap by catering to the complex and diverse needs of SMEs, offering a fully integrated product that encompasses banking, payments, invoicing, expense management, accounting, and additional services such as business registration.
Strategic Expansion and Market Localization
With the recent funding, Finom is well-positioned to expand its presence across the Eurozone, building on its existing customer base of 85,000 in Germany, Spain, France, Italy, and the Netherlands. While currently available throughout the EU, the company plans to focus on localizing its services for additional markets in the near future.
Investment Partners and Future Outlook
The Series B round was co-led by Northzone and General Catalyst, with participation from prominent investors including Target Global, Cogito Capital, Entrée Capital, FJLabs, and S16vc. This substantial backing underscores the confidence in Finom’s vision and its potential to revolutionize financial services for SMEs in the European market.
