FINOM, a leading digital banking solution for SMEs and entrepreneurs based in Amsterdam, has announced a significant €50M Series B funding round. The round was led by General Catalyst and Northzone, with participation from existing investors including Cogito Capital, Entrée Capital, FJLabs, s16vc, and Target Global, bringing FINOM’s total raised capital to over €100M.
The funds will be utilized to improve FINOM’s existing product offerings, further marketing initiatives, and expand accounting services to meet the growing demands of SMEs across Europe. FINOM, founded in 2020 by fintech veterans Andrey Petrov, Kos Stiskin, Oleg Laguta, and Yakov Novikov, provides businesses with the tools to quickly open an account, streamlining online banking, payment processing, invoicing, and expense management.
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Building a Full-Stack Financial Operating System
The startup’s mission is to build a full-stack financial operating system for entrepreneurs and SMEs, offering a suite of services powered by its proprietary core banking system. This includes rapid account setup, online banking, payment processing, invoicing, FX, and expense management. The company, holding an Electronic Money Institution (EMI) license, operates across Europe and serves more than 85,000 customers in Germany, France, Spain, the Netherlands, and Italy, with plans to cover the entire Eurozone by 2025.
Aiming for Market Leadership in the EU
Co-Founder Kos Stiskin emphasized the vast growth potential in the EU’s SME banking sector, with less than 3% market penetration achieved so far by neobanking contenders. FINOM is committed to becoming the leader in the EU by adapting its unified platform infrastructure to the unique characteristics of each country it serves, aiming to transform the SME banking experience into something straightforward and user-friendly.
Support from Leading Venture Capital Firms
General Catalyst and Northzone’s investment in FINOM underscores their confidence in the company’s vision and experienced team. Adam Valkin, Managing Director at General Catalyst, expressed excitement for the continued partnership with FINOM on its mission to help the European economy thrive. Sanjot Malhi, Partner at Northzone, highlighted FINOM’s best-in-class core banking product and platform potential through its payments and microservices software offering for SMEs, demonstrating success across several major Western European economies.
With this new round of funding, the company is well-positioned to accelerate its growth and continue innovating in the digital banking space, providing SMEs and entrepreneurs with the financial tools they need to succeed in a rapidly evolving market.
