The USD 150 million financing deal was made with i80 Group, marking the company's largest funding round to date. The raised capital will help with the expansion of Plazo, ID Finance's primary financial wellness app and a key component of its strategic initiatives. According to the official press release, this transaction stands as one of the largest financing rounds completed by a Spanish fintech firm in recent years, signifying a step forward for ID Finance as it pursues its growth objectives.
Representatives from ID Finance brought up the importance of the financing, stating it serves as both a validation of past achievements and a catalyst for future aspirations. With i80 Group's backing, ID Finance aims to propel its financial innovation and inclusivity efforts, positioning Plazo as an essential tool for promoting financial wellness in Spain and beyond.
The financing provides Plazo with immediate opportunities for scaling its operations and advancing its product offerings, marking a new phase for the company.
Representatives from i80 Group underscored the partnership's significance in expanding ID Finance's customer base and product portfolio. They emphasised ID Finance's unique position in addressing critical gaps in the financial services market through its access to capital and financial wellness tools.
The official press release further details that the Spanish division of ID Finance emerged as the primary profit driver in 2023, noting success in new loans issued, revenue generated, and net profit earned.
The newly secured financing from i80 Group unlocks new opportunities for Plazo to enhance its lending capabilities and introduce innovative features. A recent strategic partnership with Meeting Pros underscores Plazo's commitment to expanding its service offerings, offering users access to medical, legal, and veterinary consultations through the app.
In 2023, Plazo experienced substantial growth. With a mission to leverage technology to improve individuals' financial well-being, Plazo continues to offer a product suite designed to meet diverse financial needs.
In March 2023, ID Finance closed a EUR 30 million funding round as an equity process led by asset manager Kingsway Capital. Following the announcement, ID Finance planned to use the funds to further improve the development process of Plazo in Spain, while preparing a launch in Mexico.
The investment required approval by the Spanish Government because of the strategic nature of ID Finance and was officially endorsed by a leading Spanish Council of Ministers after the company received a favourable review from the External Investment Board.
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