Dutch Fintech Startup, Bunq, Raises €100 Million in Funding to Drive Expansion
Bunq, a pioneering Dutch startup providing comprehensive banking, savings, payments, and card services to consumers across Europe, has recently closed an equity funding round, raising an impressive €100 million ($111 million at current exchange rates). The funding comprises €44.5 million from the latest round and a previously undisclosed €55.5 million secured earlier this year.
Notably, this investment constitutes an “inside round,” as it comes from existing backers, including Pollen Street Capital, Raymond Kasiman, and the company’s founder and CEO, Ali Niknam. Bunq’s valuation following this funding stands at an impressive €1.65 billion ($1.8 billion today; $1.9 billion in 2021), the same valuation attained during its previous funding round in 2021, where it raised $228 million from the same investors.
Interestingly, prior to this external investment, Bunq had solely relied on Niknam’s personal funding, reflecting his faith in the company as a third-time entrepreneur. With an ownership stake of approximately 90%, Niknam has been a strong driving force behind the company’s growth.
The new funding will fuel Bunq’s expansion plans as it seeks to capitalize on its thriving cross-border banking model. Currently serving 9 million customers, a significant surge from the 5.4 million customers just one year ago, Bunq’s customer deposits have also escalated from €1 billion two years ago to €4.5 billion today. While its primary customer base remains concentrated in Europe, the company sees vast potential in the United States. In April of this year, Bunq initiated the process of obtaining a banking license in the US.
Bunq’s strategic focus lies in targeting European expatriates who have relocated to the US while maintaining their ties and financial interests in Europe. With an eye on catering to the needs of this niche market, the company is set to expand its footprint and bolster its services across borders.