European Challenger Bank Finom Raises €50 Million in Series B Funding 💰
Finom, a European challenger bank targeting SMEs and freelancers, has successfully secured €50 million in Series B financing.
European challenger bank for SMEs, Finom, raises $54M.
Finom, a European challenger bank that specifically caters to small and medium-sized enterprises (SMEs) and freelancers, has recently secured an impressive €50 million ($54 million) in a Series B equity round of funding. Founded in the Netherlands in 2019, Finom aims to provide efficient and convenient financial services to businesses in the form of online banking, cross-border transactions, expense management tools, accounting software integration, and physical or virtual bank cards.
While Finom competes in a space that includes popular players such as Wise, Qonto, and Revolut, its successful funding round underscores the increasing demand for financial services tailored to SMEs in an industry that is still largely dominated by traditional big banks. In recent times, we have witnessed the rise of challenger banks like Atom Bank and Monument, as well as significant investments in SME lenders like Iwoca. These developments highlight the growing recognition of the unique needs and complexities faced by SMEs, which traditional banks often overlook due to compliance risks and limited lending opportunities.
According to Yakov Novikov, the co-founder and co-CEO of Finom, the number one problem that they tackle for SMEs is the lack of reasonable banking options. Traditional banks consider serving SMEs as “uninteresting” due to compliance risks and limited lending possibilities. The existing digital banks do offer some relief, but they fall short of meeting the high level of needs and complexities that SMEs face. This creates a significant gap in the market which Finom aims to fill with its fully integrated product offering.
🔍 Examining Finom’s Core Offering
Finom distinguishes itself with its “fully integrated” product that encompasses a wide range of services – including banking, payments, invoicing, expense management, accounting, and even business registration. By consolidating these services into one platform, Finom not only saves businesses valuable time each week but also reduces costs by eliminating the need for multiple separate services. This all-in-one solution promises to be a game-changer for SMEs and freelancers who are seeking efficient financial management tools.
💰 Show Me the Money!
Over the years, Finom has successfully raised approximately €50 million, securing multiple seed tranches in 2020 and a €33 million ($35 million) Series A round earlier this year, which was not publicly disclosed until now. While Finom might be grouped together with other startups challenging traditional banks, it operates under an Electronic Money Institution (EMI) license rather than a banking license. While this means it cannot offer lending services, it can provide services that are similar to what traditional banks offer. Finom obtained its EMI license in the Netherlands, but it allows the company to operate throughout the European Union (EU).
🚀 Expanding Across the Eurozone
With an additional €50 million in funding secured, Finom is well-positioned to strengthen its expansion efforts and aims to target the entire Eurozone by next year. At present, Finom boasts approximately 85,000 customers in Germany, Spain, France, Italy, and the Netherlands. While it is technically available across the entire EU, Finom plans to localize its services for additional markets in the coming months. This move will allow them to cater to the unique needs and regulations of different European countries, ensuring a seamless user experience for customers across the continent.
💼 Who’s in on the Funding?
The Series B round of funding was co-led by new investor Northzone and existing investor General Catalyst, known for backing renowned companies such as Airbnb, Stripe, and Snap. Other notable participants in the round include Target Global, Cogito Capital, Entrée Capital, FJLabs, and S16vc. The involvement of these influential investors further validates the potential and excitement surrounding Finom’s mission to transform financial services for SMEs and freelancers.
🔗 References: – Wise: Digitally Transforming International Payments – Qonto: Revolutionizing Business Banking – Revolut: A Fintech Unicorn – Iwoca: Empowering SMEs through Lending – Atom Bank: A Revolutionary Challenger Bank – Monument: Redefining SME Lending
🛍️ Let’s Shop for Knowledge!
If you’re eager to learn more about the challenges faced by SMEs in the banking landscape, the rise of challenger banks, or the future of financial services, then feel free to dive into the following resources for an enlightening educational shopping spree:
- FinTech Futures: Challenger Banks: The Race to Transform Banking
- Forbes: Rise of the Challengers: How Challenger Banks are Decoding a New Language
- TechCrunch: The Future of Banking is here: Banks and Fintechs in the Era of Digital Disruption
- Financial Times: SME Banking: The Next Frontier
- Business Insider: The Changing Landscape of the European Banking Sector
🙌 Join the Finom Revolution!
Are you an SME owner or freelancer looking for a banking solution that truly understands your unique needs and simplifies your financial management? Look no further! Finom is here to revolutionize the way you conduct your business.
Visit Finom today and open up an online bank account in just minutes. Experience the power of seamless cross-border transactions, advanced expense management tools, and integration support for your accounting software. Say goodbye to unreasonable banking and hello to the future of financial services for SMEs and freelancers! 💼
👇 Share your thoughts!
Have you had any experiences with challenger banks or digital banking for SMEs? Are you excited about Finom’s innovative approach? Leave a comment below and let’s start a conversation! Don’t forget to share this article with your fellow entrepreneurs, SME owners, and freelancers on social media. Together, we can transform the financial landscape for small businesses! 🚀
