Finom Receives Investment to Expand Digital Business Banking Solution

Finom, the Europe-based B2B fintech platform for SMEs and freelancers, announced that it has raised €50 million in a Series B equity financing round. According to the information detailed in the press release, the newly acquired funds solidify Finom's position in the industry. It also underlines the demand for small and medium-sized enterprise (SME) financial services in a market dominated by large banks. The Series B funding round was co-led by Northzone and existing investor General Catalyst, with participation from Target Global, Cogito Capital, Entrée Capital, FJLabs and S16vc.

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Finom Launched its Services in the Netherlands in 2019

It allows businesses to open online bank accounts and obtain an International Bank Account Number (IBAN) to facilitate cross-border transactions. It also provides customers with physical or virtual debit cards, expense management tools and accounting software integration support.

Finom, which holds an Electronic Money Institution (EMI) licence, can offer services similar to those offered by banks, except for lending solutions. The company obtained the EMI licence for the Dutch market in November 2022, enabling it to focus on recruitment and customer service. Prior to this, Finom had launched its services in the UK, Germany and France. At the time, Finom was aiming to gradually roll out its presence across Europe, expanding its product offering in Italy by the end of 2022 and launching in five more markets by the end of 2023, including Poland, Spain, Austria, Portugal and Belgium.

The injection of funds comes in addition to the company's previous €50 million raise in several seed tranches in 2020 and an undisclosed €33 million Series A round from 2022. It shows that it currently has around 85,000 customers in Germany, Spain, France, Italy and the Netherlands and plans to launch its own new investment.