▼ Summary
– Finom, an Amsterdam-based digital bank for SMEs, raised €92.7 million in a growth investment from General Catalyst’s Customer Value Fund, with funds earmarked exclusively for client acquisition.
– The funding round is non-traditional, as General Catalyst did not take equity, and Finom’s core operations are already cash-flow positive.
– Finom expanded its services beyond digital banking in 2024, launching an AI accounting agent and entering direct lending with an AI-powered scoring engine.
– The company serves over 100,000 businesses across five European countries, with a revenue model based on subscriptions, transaction fees, cashback, and now lending interest.
– Finom has raised nearly €190 million since 2020, doubled its annual recurring revenue in 2024, and is EBITDAM-profitable, though its valuation remains undisclosed.
Finom, the Amsterdam-based digital banking platform serving small and medium-sized businesses, has secured €92.7 million ($105 million) in growth funding from General Catalyst’s Customer Value Fund. Unlike traditional equity rounds, this investment focuses solely on customer acquisition rather than operational costs or product development, reflecting the company’s strong financial footing.
Kos Stiskin, Finom’s chairman and co-founder, emphasized that the company’s core operations are already cash-flow positive, allowing all new capital to fuel expansion. The startup has rapidly evolved beyond digital banking, introducing an AI-powered accounting tool for European entrepreneurs earlier this year, followed by a direct lending service with proprietary AI scoring. By the end of 2024, Finom plans to roll out its credit offerings across Europe, building on its existing presence in the Netherlands.
With over 100,000 business clients across Germany, France, Spain, Italy, and the Netherlands, Finom operates on a subscription-based model, supplemented by transaction fees and cashback incentives. Its recent foray into lending has unlocked additional revenue through interest on credit lines. While exact figures remain undisclosed, Stiskin confirmed that annual recurring revenue doubled in 2024, with the company achieving EBITDAM profitability—a metric that excludes marketing costs from traditional EBITDA calculations.
Finom’s closest rival, Qonto, raised €486 million in 2022, but Stiskin argues Finom’s localized approach and broader product range set it apart. The company now employs 505 staff, a 31.5% increase from last year, and recently appointed Alessandro Camilotti, former Klarna executive, as CFO.
Since its 2020 launch, Finom has amassed nearly €190 million ($214 million) in total funding, including a €50 million Series B earlier this year co-led by General Catalyst and Northzone. Though its current valuation remains undisclosed, PitchBook data pegged it at $150.7 million post-seed in late 2021.
Zeynep Yavuz, General Catalyst partner, praised Finom’s scalable infrastructure and proprietary compliance tools, citing its AML/KYC engine as a key differentiator for both regulatory adherence and customer experience. With this latest injection of capital, Finom aims to deepen its European footprint while maintaining its trajectory as a profitable challenger bank for SMBs.
Image Credits: Finom
(Source: TechCrunch)
