Finom, a digital bank headquartered in Amsterdam, is passionate about serving small- and medium-sized businesses (SMBs). It has largely done this by raising a ton of growth funding—€92.7 million, or $105 million—from General Catalyst’s new Customer Value Fund. The new capital comes as Finom, fresh off its Apr. 2023 launch in Germany, seeks to deepen its product offering and further scale its presence throughout Europe. With more than 100,000 businesses as customers in Germany, France, Spain, the Netherlands, and Italy, Finom has established itself as a significant player in the European fintech landscape.
Since its founding in 2020, Finom has raised just under €190 million (or just over $214 million). The announcement follows a $20 million Series B equity round completed in February 2024. In that funding round, the company raised €50 million, about $56 million, co-led by General Catalyst Partners and Northzone. The funding will allow Finom to continue developing its product portfolio. This support will enable continued acceleration of growth in a sector that remains one of the nation’s most untapped markets.
Finom is doing so well that it has positive unit economics in each of its 4 markets. It produces revenue by levying transaction fees for a complete suite of services. The bank’s tiered, competitive cashback program is attractive to its SMB customers. Finom’s credit offering is, for the moment, only available in the Netherlands. They’re hoping to roll out this service to other countries in Europe by the end of the year.
In March, Finom took a big step into the direct lending space. Using an AI-powered scoring engine, they were able to improve their lending process by leaps and bounds. This unique strategy is a testament to Finom’s dedication to using technology to deliver customized financial services. In addition, back in February the bank launched an “autonomous AI accounting agent” intended to help entrepreneurs and freelancers across Europe.
In early September, Finom hired Alessandro Camilotti as Finance Chief. Camilotti’s extensive experience in his former role as head of finance and analytics EU at Klarna complements King’s perspective. His expertise will be instrumental as Dwell adds more depth to the management team and guides the company through the next stage of growth.
Despite facing competition from other challenger banks such as Qonto—whose recent €486 million ($548 million) Series D funding round highlighted the competitive nature of the sector—Finom is positioning itself for success. Zeynep Yavuz, partner at General Catalyst, expressed confidence in Finom’s potential, stating that the bank has “shown strong execution in a market that is still deeply underpenetrated.”
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