Finom Raises €50 Million in Series B Funding to Expand SME Financial Services
In the rapidly evolving landscape of fintech, challenger banks have been gaining traction by offering innovative solutions to small and medium-sized enterprises (SMEs) and freelancers. Finom, a European bank founded in 2019 in the Netherlands, has recently secured €50 million ($54 million) in a Series B equity round of funding. This significant investment will enable Finom to further its expansion efforts and solidify its position as a leading provider of SME financial services.
A Unique Solution for SMEs
Finom’s platform allows businesses to open an online bank account in mere minutes, providing them with an international bank account number (IBAN) for seamless cross-border transactions. In addition to this core feature, Finom offers physical or virtual bank cards, expense management tools, and integration support for accounting software. By consolidating these services into a single platform, Finom aims to save its clients hours of time each week and reduce their costs by eliminating the need for separate services.
The Problem with Traditional Banking
According to Yakov Novikov, co-founder and co-CEO of Finom, the primary issue that SMEs face is "unreasonable banking." Traditional banks often view serving SMEs as uninteresting due to high compliance risks and limited lending opportunities. As a result, these businesses are frequently forced to rely on subpar financial products.
A Growing Demand for SME Financial Services
The demand for SME financial services has been steadily increasing in recent years, with several challenger banks attracting significant investments. Atom Bank and Monument have raised substantial funds, while SME lenders such as Iwoca have also secured sizable new funding lines. Finom’s fundraise further highlights the gap in the market that these innovative providers are seeking to fill.
Finom’s Unique Selling Point
Finom touts its core selling point as being a ‘fully integrated’ product spanning banking, payments, invoicing, expense management, accounting, and tangential services such as business registration. This comprehensive approach sets Finom apart from other challenger banks and positions it as a one-stop-shop for SMEs seeking to streamline their financial operations.
A Strong Founding Team
Finom’s co-founders have a strong track record of success in the fintech industry. Yakov Novikov, Andrey Petrov, Oleg Laguta, and Kos Stiskin bring a wealth of experience and expertise to the table, having previously founded other successful startups.
The Road Ahead for Finom
With €50 million in new funding, Finom is well-positioned to accelerate its expansion efforts. The company has already secured 85,000 customers across Germany, Spain, France, Italy, and the Netherlands, and plans to target the entire Eurozone by next year. As it gears up for further growth, Finom will focus on localization efforts for additional markets in the coming months.
A Strong Support System
Finom’s Series B funding was led by a group of experienced investors, including [Name], who commented: "We believe that Finom has the potential to revolutionize SME financial services. Their unique approach and strong founding team make them an exciting investment opportunity."
Conclusion
Finom’s recent fundraise demonstrates its commitment to delivering innovative solutions for SMEs and freelancers. As the fintech landscape continues to evolve, Finom is poised to play a significant role in shaping the future of SME financial services.
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Contact Us
For more information about Finom or to discuss potential collaborations, please don’t hesitate to contact us at info@finom.com.
