Financial news

Amsterdam-based FINOM, a digital banking solution for SMEs and entrepreneurs, announced on Tuesday that it has secured €50M in a Series B round of funding.

The funding round was led by General Catalyst and Northzone, with participation from existing investors, including Cogito Capital, Entrée Capital, FJLabs, s16vc, and Target Global. 

The latest round brings FINOM’s total raised capital to over €100M.

The Dutch company will use the funds to improve existing product offerings, further marketing initiatives, and expand accounting services to meet the growing demands of SMEs. 

FINOM: Digital banking solution for SMEs and Entrepreneurs

Co-founder by fintech veterans – Andrey Petrov, Kos Stiskin, Oleg Laguta, and Yakov Novikov in 2020, FINOM‘s banking tools enable businesses to quickly open an account, streamlining online banking, payment processing, invoicing, and expense management.

The company does it by developing its proprietary core banking system that powers its broad suite of products and services, including rapid account setup, online banking, payment processing, invoicing, FX, and expense management. 

The company holds an Electronic Money Institution (EMI) licence operational across Europe.

FINOM’s mission is to build a full-stack financial operating system for entrepreneurs and SMEs.

At present, the company serves more than 85,000 customers across Germany, France, Spain, the Netherlands, and Italy. It is expected to offer coverage across the entire Eurozone by 2025. 

“We’re beginning a journey in the EU’s SME banking sector, where there’s still vast growth potential, with less than 3% market penetration achieved so far by neobanking contenders,” says Kos Stiskin, co-founder at FINOM. 

“In this fast-evolving landscape, FINOM is committed to becoming the leader in the EU through adapting our unified platform infrastructure, while paying close attention to the unique characteristics of each country we serve. Our goal is to transform the SME banking experience into something straightforward and user-friendly, meeting all the needs of a modern SME,” adds Stiskin. 

The investor

Based out of Cambridge, General Catalyst is a venture capital firm that provides early-stage and growth equity investments. The VC is known for its investments in Rapyd, Deliveroo, Airbnb, and Stripe. 

“General Catalyst initially invested in Finom at its founding. We recognised what we believe to be an exceptional and experienced team with a compelling vision to empower more than 20 million small businesses in Europe,” says Adam Valkin, Managing Director at General Catalyst. “And we are excited for our continued partnership with the Finom team on its mission to help the European economy thrive.”

Northzone is an early-stage venture capital fund with over $1.7B in assets under management. The VC has hubs in New York, London and Stockholm. Northzone has raised nine funds to date and has invested in more than 150 companies, including Spotify, iZettle, Avito, Kahoot!, Hopin, Klarna, and Trustpilot.

“We have had a long-standing thesis on the European SME Banking and financial software space, and Finom exemplifies that. Finom has a truly best-in-class core banking product, which forms the backbone of its customers’ financial stack. However, the true platform potential of Finom is seen through its payments and microservices software offering for SMEs, with clearly demonstrated success across several major Western European economies. We look forward to partnering with the team and seeing Finom emerge as a European market leader,” adds Sanjot Malhi, Partner at Northzone who is joining the board as part of the round.