Finom raises EUR 50 million in Series B equity round

With its operations started in the Netherlands in 2019, Finom allows businesses to open online bank accounts and receive an International Bank Account Number (IBAN) to facilitate cross-border transactions. Additionally, customers receive physical or virtual bank cards, expense management tools, and integration support for accounting software. Holding an Electronic Money Institution (EMI) licence, Finom can provide services similar to what a bank offers, not including lending solutions. The company secured its EMI licence for the Netherlands market in November 2022, enabling it to focus on delivering onboarding and customer services. Prior to this, Finom launched its services in the UK, Germany, and France. At that time, Finom aimed to gradually showcase its presence across Europe, extending its product offering in Italy by the end of 2022, while launching in five additional markets by the end of 2023, including Poland, Spain, Austria, Portugal, and Belgium.

According to Finom’s officials for TechCrunch, SMEs are underserved by traditional banks due to compliance risks being high and lending opportunities being limited. However, as SMEs’ needs and complexity are higher, the company provides a fully integrated product across banking, payments, invoicing, expense management, accounting, and tangential services, including business registration. Furthermore, the consolidation of services intends to minimise time for Finom’s clients, as well as to reduce their costs by removing the need for separate services. The fund injection comes as an addition to the company’s previous raise of EUR 50 million in a couple of seed tranches in 2020 and an undisclosed EUR 33 million Series A round from 2022.

The current investment supports Finom in its development strategy, as it plans to target the entire Eurozone by 2025. The company’s data shows that it currently has approximately 85,000 customers in Germany, Spain, France, Italy, and the Netherlands, and intends to start its localisation efforts for additional markets during 2024.

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