Dutch neobank Bunq reels in $228m at $1.9bn valuation led by Pollen Street Capital

A challenger bank based in Amsterdam has raised $228 million in a funding round – the largest Series A funding round for a European FinTech company in recent years.

Aside from Pollen Street Capital, Bunq founder Ali Niknam also participated in the round that was led by them. As part of the round, Pollen Street Capital provided the rest of the funding, which equated to $29.5 million.

With this deal, Bunq is also acquiring Capitalflow Group, which was previously owned by Pollen Street Capital and which is awaiting regulatory approval as part of its acquisition of Bunq. As part of its digital platform, Capitalflow offers a variety of flexible financing options for small and medium-sized companies looking to expand and scale their businesses.

Nikam founded Bunq in 2012, and up until now, the startup was bootstrapped by Nikam, who ploughed $116.6m of his own funds into the company – and that doesn’t even take into account the latest funding round that was announced today.

Today, the company anticipates that it will be able to generate a profit every month by the year 2021. In the first quarter of this year, the company crossed the €1 billion mark in user deposits.

In order to fuel the growth strategy of the company, the company expects to acquire smaller companies. There has also been a significant increase in the number of challenger banks in the European market in recent years.

You can manage your bank account and your debit card on the go with Bunq’s app, which is available for both Android and iOS. There are a number of activities that customers can take part in with their friends. This app creates a shared pot in which users are able to share expenses with one another. One can also create sub-accounts when one lives with roommates so that the bills can be paid from the account shared by the roommates. The Bunq app can be used for a number of things, such as sending money, sharing bunq.me payment links with friends who are using Bunq, splitting payments, and many more.

It is also possible to get a free travel card with a limited feature set that is related to the company’s plans, which range from €2.99 per month to €17.99 per month. It is clear that the startup is on a road to profitability by choosing to focus on a subscription-based business model.

A Dutch based challenger bank raised the largest Series A round for a European FinTech company with $228 million.

We were excited to see Bunq founder Ali Niknam participating in the second round of Entrepreneur First’s London Tech City Challenge.

He invested $29.5 million. Pollen Street Capital financed the rest of the round.

As part of the deal, Bunq is also acquiring a UK based lending company called Capitalflow, which has its headquarters in Dublin, Ireland. Capitalflow helps firms to scale up their businesses through flexible loans and credit solutions provided over a digital platform.

With $116.6M in capital investment, and $115M in revenue generated since the company’s founding in 2012, it’s clear this company has massive potential to reach success.

 

When the company reached €1bn in user deposits last month, it expected to make a net profit of €70m, which it will use to fund its expansion plans. That means it’s going to break even in 2021.

Google wants to buy companies so it can build its own businesses.

Banks are trying to take business from one another, so they compete. Challengers in Europe are all trying to get business.

Bunq is the new credit card for millennials who want their money in their hands, not someone else’s. It’s an easy-to-use banking service that gives you the tools to manage your finances from a mobile device or laptop.

In this case, you can create a subaccount. When your roommate has made a payment in the account, it will appear to be his or her own. You can see the activity and the payment.

Bunq is a free app that allows users to connect to their account to access their balance, make transfers and send payments. The app is built to help people create more frequent and convenient payments as part of their everyday life.

1.The company offers different plans that range from

2.99€ per month to

3.99€ per month, and there’s a free travel card with limited features.

Subscription-based businesses can create a clear path to profitability.

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