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European challenger bank for SMEs raises €50M

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Feb 13, 2024
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Illustration: Megan Robinson/Axios

Finom, a European challenger bank serving small businesses, solo entrepreneurs and freelancers, raised €50 million in Series B funding.

Why it matters: Banking tools for small businesses continue to attract new investors.

How it works: Finom offers SMEs online banking, physical and virtual cards, payment processing and invoicing, as well as an FX service for managing cross-border transactions.

  • Like many other business banking startups, the company also has a dashboard to simplify accounting and spend management.
  • The Amsterdam-headquartered startup has an Electronic Money Institution (EMI) license, which allows it to offer bank-like services (without lending) to businesses across the EU.

By the numbers: With the latest financing, Finom has raised €100 million since being founded in 2019.

  • New investor Northzone co-led the round with previous backer General Catalyst.
  • Existing investors Cogito Capital, Entrée Capital, FJLabs, s16vc and Target Global also participated.

What's next: Finom plans to double its headcount and expand its localization efforts to support additional Eurozone markets by year-end.

  • Finom has about 250 employees and touts more than 85,000 customers across Germany, France, Spain and the Netherlands.
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