In a significant move for the financial technology sector, a digital banking platform based in Amsterdam has successfully secured €92.7 million (approximately $105 million) in growth funding. This investment comes from a prominent venture capital firm, marking a pivotal moment for the bank as it aims to enhance its services for small and medium-sized enterprises (SMEs).
The chairman and co-founder of the bank emphasized that this funding will be dedicated solely to growth initiatives, steering clear of operational costs or product development. This unique funding approach allows the firm to maintain its equity while focusing on expanding its client base.
With a strong foundation in banking, the company has recently broadened its service offerings. Earlier this year, it introduced an innovative AI-driven accounting tool designed specifically for entrepreneurs and freelancers across Europe. Additionally, the bank has ventured into direct lending, utilizing an AI-powered scoring system to streamline the process.
The lending services, currently available in the Netherlands, are set to expand throughout Europe by the end of the year, further solidifying the bank’s presence in the market.
Currently, the bank serves over 100,000 businesses in countries including Germany, France, Spain, the Netherlands, and Italy, and reports positive financial metrics across all regions. Its revenue model is primarily subscription-based, supplemented by transaction fees and a competitive cashback program. The recent foray into lending has also opened up a new revenue stream through interest on credit lines.
While specific revenue figures remain undisclosed, the chairman noted that the bank has doubled its annual recurring revenue in 2024 and is achieving profitability before interest, taxes, depreciation, amortization, and marketing expenses.
In a recent discussion, the chairman identified a key competitor in the market, highlighting the differences in their localization strategies and product offerings. He believes that the bank’s comprehensive suite of services positions it favorably against its rivals.
With a workforce of 505 employees, reflecting a 31.5% increase from the previous year, the bank is poised for continued growth. The recent appointment of a new CFO, who previously led finance and analytics at a major fintech company, is expected to drive further strategic initiatives.
Since its inception in 2020, the bank has raised nearly €190 million (around $214 million) in total funding. A previous funding round in February 2024 brought in €50 million (approximately $56 million), co-led by the same venture capital firm.
While the bank has not disclosed its current valuation, it was previously valued at $150.7 million following an earlier funding round. Industry experts believe that the bank’s strong execution in a market with significant growth potential, combined with its modular infrastructure, positions it well for future expansion.
Furthermore, the bank’s proprietary systems for anti-money laundering and customer verification are seen as key advantages, enhancing both compliance and customer experience.