Finom Secures €50M Funding to Advance SME Banking Solutions
European fintech startup Finom has recently closed a significant Series B equity funding round, raising €50 million to bolster its operations aimed at small and medium-sized enterprises (SMEs) and freelancers. The Dutch-based challenger bank, founded in 2019, offers a comprehensive financial product suite tailored to the unique needs of small businesses.
The funding round, co-led by Northzone and General Catalyst, renowned investors backing high-growth companies like Airbnb and Stripe, underscores the confidence in Finom’s vision and execution. Additional support came from Target Global, Cogito Capital, Entrée Capital, FJLabs, and S16vc, highlighting broad-based enthusiasm for Finom’s mission.
Finom’s core offering enables SMEs to open online bank accounts swiftly, complete with International Bank Account Numbers (IBANs) for seamless cross-border transactions. Clients also gain access to physical or virtual bank cards, sophisticated expense management tools, and seamless integration with leading accounting software.
The €50 million infusion will fuel Finom’s ambitious expansion plans, with a focus on serving the entire Eurozone by the next year. Currently boasting approximately 85,000 customers across Germany, Spain, France, Italy, and the Netherlands, Finom aims to enhance its geographic footprint through localization efforts in additional markets.
Co-founder and co-CEO Yakov Novikov emphasized Finom’s commitment to addressing the banking needs of SMEs, which are often neglected by traditional banks due to compliance risks and limited lending opportunities. Finom’s integrated product suite consolidates banking, payments, invoicing, expense management, accounting, and other services, offering clients significant time and cost savings by eliminating the need for separate solutions.
Despite the competitive landscape, with players like Wise, Qonto, and Revolut, Finom’s recent funding round underscores the growing demand for SME-focused financial services in a market still largely dominated by traditional banks. The success of challenger banks like Atom Bank and Monument, along with the emergence of SME lenders like Iwoca, further highlights the opportunities in this space.
Finom’s ability to secure regulatory licenses, such as the Electronic Money Institution (EMI) license in the Netherlands, enables it to offer banking services across the entire European Union (EU). This regulatory framework positions Finom to navigate the complex financial landscape while expanding its suite of offerings to meet the evolving needs of SMEs.
Looking ahead, Finom is poised for significant growth as it continues to innovate and expand its product lineup to serve the diverse needs of SMEs across Europe. With a strong financial backing and a dedicated team, Finom aims to empower European entrepreneurs by providing them with the tools and resources to thrive in today’s competitive business environment.
