Finom, an Amsterdam-based digital bank for small and medium-sized businesses, has raised 92.7 million euros (approximately $105 million) in growth investments from General Catalyst’s customer value fund.
Kos Stiskin, chairman and co-founder of Finom, said capital injections are “used exclusively and for growth only, used only for growth, and only for growth,” Kos Stiskin told TechCrunch. He described it as a non-traditional fundraising round that general catalysts do not impartial.
“(o)UR core operations generate positive cash flow, with all new investments and funds going directly to attract new clients,” says Stiskin.
FINOM is primarily in banking, but this year the company has expanded its offering beyond digital banking services. In February, FINOM announced what Stiskin described as an “autonomous AI accounting agent” for European entrepreneurs and freelancers. And in March, the startup expanded to direct lending, which incorporates AI-powered scoring engines.
Finom’s credit offering, available in the Netherlands, will expand across Europe by the end of the year, Stiskin added.
Today, FINOM counts over 100,000 companies as clients across Germany, France, Spain, the Netherlands and Italy, reporting positive unit economics across all markets. Its revenue model is primarily subscription-based. FINOM generates revenue through transaction fees for certain services and provides a competitive cashback program. The recent expansion into lending has opened new revenue streams through interest on the credit line.
Stiskin refused to reveal his hard income figures, but he told TechCrunch that Finom doubled its annual recurring revenue in 2024, and that the company was “profitability of Ebitdam (interest, taxes, depreciation, amortization, and marketing).
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In an interview, Stiskin described Paris-based challenger bank Qonto in January 2022 as Qonto, which announced a 486 million euro (~$552 million) Series D funding round in January 2022. However, Stiskin believes Finom has a “stronger localization strategy and a more comprehensive suite of products.”
Currently, FINOM has 505 employees, an increase of 31.5% compared to last year. Last September, the company appointed Alessandro Camilotti, former head of financial and analytics EU for Klarna, as CFO.
In total, FINOM has raised almost 190 million euros (approximately $214 million) since its inception in 2020. In February 2024, Finom announced it had raised 50 million euros (approximately $56 million) in the Series B equity round, co-led by Catalyst and Northzone.
The startup refuses to disclose its assessment. According to Pitchbook, FINOM was valued at $150.7 million in money in November 2021 after seed funding from VCS Target Global, Tal Ventures and General Catalyst.
Zeynep Yavuz, a partner at General Catalyst, believes Finom “shows a strong execution in a market that is still deeply invaded.” She also believes that modular infrastructure will provide businesses with the ability to “scale efficiently” across regions “to leverage sharing capabilities while localizing as needed.”
“We believe that the customer engine that Finom knows is unique money laundering and has outstanding benefits not only for compliance but for customer experience,” says Yavuz.