Finom: European Challenger Bank for SMEs Raises $54M
Finom, a European challenger bank tailored for SMEs, has secured $54 million in a Series B equity funding round. This investment highlights the rising demand for financial services customized to meet the needs of SMEs across Europe.
Established in the Netherlands in 2019, Finom simplifies the process for businesses to open online bank accounts and obtain International Bank Account Numbers (IBANs) for facilitating cross-border transactions. Additionally, the company focuses on;
- Giving clients access to physical or virtual bank cards.
- Expense management tools.
- Seamless integration with accounting software.
- Providing a holistic suite of financial solutions.
Yakov Novikov, the co-founder and co-CEO of Finom, highlighted the hurdles encountered by SMEs in traditional banking setups. He emphasized the limited product offerings and the perception of SMEs as ‘uninteresting’ for conventional banks due to compliance risks and constrained lending opportunities. Finom endeavors to bridge this gap by catering to the intricate and diverse needs of SMEs, offering a fully integrated product that covers banking, payments, invoicing, expense management, accounting, and ancillary services like business registration.
The Series B funding round was jointly led by Northzone and General Catalyst, with participation from prominent investors such as Target Global, Cogito Capital, Entrée Capital, FJLabs, and S16vc. This substantial backing reflects confidence in Finom’s vision and its potential to revolutionize financial services for SMEs in the European market.
Finom is now in a great position to expand across the Eurozone with the fresh capital.
Finom’s successful fundraising marks a significant milestone in its mission to empower SMEs with tailored financial solutions. As it continues to innovate and expand its reach, Finom stands poised to play a pivotal role in reshaping the landscape of SME banking in Europe.
