Bunq, the digital bank headquartered in Amsterdam, has attracted a $ 228 million venture capital investment worth $ 1.9 billion. Its founder and CEO, Ali Niknam, thus became the entrepreneur who lifted the largest round of Serie A for a European fintech company.
Bunq is part of the wave of fintech digital innovators that have emerged across Europe over the past decade. After several years of self-financing, the company attracted investment in a round of financing led by Pollen Street Capital.
As part of the financing round, Bunq also made its first acquisition in Capitalflow Group to help the digital bank provide loans to SMEs. Founded in 2013 by Lindsey McMurray, Pollen Steet Capital now operates through private equity and credit strategies on behalf of investors, which include large pension funds, asset managers, banks and family offices around the world. According to Reuters, through this financing, the British investment fund acquired a 10% stake in Bunq.
„Combining the loan expertise of SMEs Capitalflow, Bunq’s digital execution capacity, creates a truly interesting, high-growth, self-sustaining platform with pan-European coverage that will set a new standard in the European digital banking sector.” says James Scott, a partner at Pollen Street Capital. The acquisition of Capitalflow will also help Bunq continue its path to profitability, reaching this level for the first time in April 2021. „For us, being sustainable also means having healthy business practices, and this may seem old-fashioned, but as a business, we need to make a profit and, ultimately, we need to have a model of businesses that can generate this, ”Niknam added.
Achieving profitability was not Bunq’s only success this year. The digital bank has also reached a level of user deposits of over 1 billion euros, more than double the previous year. Bunq has opened offices in Rotterdam and Cologne, Germany for the past six months. Earlier this year, Bunq became the first fintech to join the TARGET Instant Payment Settlement network, developed by the European Central Bank.