Finom, the Amsterdam-based, Europe-wide operating challenger bank has its sights set on serving small and medium-sized businesses (SMBs) across the continent. To enable that, it has closed an oversubscribed €115 million ($~133 million) Series C equity round. AVP, previously AXA Venture Partners, taking the lead in this funding round is a notable achievement for the five-year-old fintech firm. This accomplishment is indicative of the growing tide in the European fintech space.
Finom’s innovative business model centers on delivering a comprehensive financial platform that integrates banking, invoicing, and an expanding suite of features, including AI-enabled accounting. The business is changing fast. Fast forward to 2024, when it doubled its revenue, and now proudly serves 125,000 unique users among the most rapidly growing platforms in America. This growth aligns with Finom’s mission to cater to the 26 million SMBs in Europe, which Kos Stiskin refers to as “the backbone of the European Union economy.”
The latest funding round pushes Finom’s total capital raised to date to about $346 million. Moreover, it has shot up to a valuation that is two times where it was in the last Series B round. That round was $54 million at the close in 2024. The next closest rival to the company, French unicorn Qonto, has raised just under $700 million. This funding is representative of the extreme competitive pressure within the European fintech landscape.
Finom’s leadership structure has undergone significant adjustments to accommodate the company in its transformation adapting to the accelerated expansion. With lessons learned, Finom has made the choice to focus fly Europe’s biggest markets. They are not giving up – and indeed, they see even more opportunities developing further afield. This strategic pivot mirrors the company’s dedication to improve its service offerings and broaden its impact all throughout the continent.
Finom has recently updated its offering in the Netherlands and added lending products. The company views this market as a proving ground for its more innovative credit products. The company aims to leverage insights gained from this initiative to refine its approach and potentially expand lending capabilities throughout Europe.
“One took longer than expected, and one was much faster than expected,” – Kos Stiskin.
Finom’s leadership is convinced that technological advancements will fundamentally reshape how businesses worldwide take care of their finances. Andrey Petrov, the company’s co-founder and architect chief, points to artificial intelligence as one of the forces driving this change.
“We’re adding some people, but mostly we’re adding new types of AI agents to work with internally,” – Andrey Petrov.
He further elaborated on the potential of their platform by suggesting that “theoretically, entrepreneurs don’t need to have an accountant at all,” pointing out how AI can streamline financial processes for SMBs.
The company’s ambitious goal is to reach one million business customers by the end of 2026. This ambitious target highlights Finom’s fierce ambition to cement its place as a top player in the European fintech scene.
