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European challenger financial institution Bunq raises $228 million at $1.9 billion valuation

Amsterdam-based challenger financial institution Bunq has been self-funded by its founder and CEO Ali Niknam for a number of years. However the firm has determined to boost some exterior capital, resulting in the most important Collection A spherical for a European fintech firm.

The startup is elevating $228 million (€193 million) in a spherical led by Pollen Street Capital. Bunq founder Ali Niknam can also be taking part within the spherical — he’s investing $29.5 million (€25 million) whereas Pollen Avenue Capital is financing the remainder of the spherical.

As a part of the deal, Bunq can also be buying Capitalflow Group, an Irish lending firm that was beforehand owned by … Pollen Avenue Capital.

Based in 2012, Ali Niknam has already invested fairly a bit of cash into his personal firm. He poured $116.6 million (€98.7 million) of his personal capital into Bunq — that doesn’t even take note of right now’s funding spherical.

Nevertheless it has paid off as the corporate expects to interrupt even on a month-to-month foundation in 2022. The corporate handed €1 billion in consumer deposits earlier this yr. So why is the corporate elevating exterior funding after turning down VC companies for thus a few years?

“Every thing has a proper time. At first of Bunq, it was vital to get a laser consumer focus within the firm. Having to additionally give attention to fundraises and the wants of buyers distracts. Bunq now’s mature sufficient to begin scaling up considerably, so extra capital is welcome,” Niknam mentioned.

Specifically, the corporate expects to accumulate smaller firms to gasoline its development technique. Challenger banks have additionally represented a extremely aggressive market over the previous years in Europe. It’s clear that there will probably be some consolidation sooner or later.

Bunq affords financial institution accounts and debit playing cards that you may management from a cell app. It really works significantly nicely in case your family and friends are additionally utilizing Bunq as you possibly can immediately ship cash, share a bunq.me cost hyperlink with different individuals, break up funds and extra.

Specifically, for those who’re happening a weekend journey, you can begin an exercise with your mates. It creates a shared pot that allows you to share bills with everybody. Should you stay with roommates, you can even create subaccounts to pay for payments from that account.

The corporate affords completely different plans that vary from €2.99 per 30 days to €17.99 per 30 days — there’s additionally a free journey card with a restricted characteristic set. By selecting a subscription-based enterprise mannequin, the startup has a transparent path to profitability as most customers are paid customers.

Possibly neobanks will break even in any case