Finom Secures $105M Growth Funding from General Catalyst to Empower SMBs as a Leading Challenger Bank

Finom, a leading digital bank based in Amsterdam, has successfully secured a remarkable €92.7 million (approximately $105 million) in growth investment from General Catalyst’s Customer Value Fund. This funding aims to accelerate the company’s expansion in the competitive digital banking landscape for small- and medium-sized enterprises (SMEs).

Strategic Investment Focused on Growth

According to Kos Stiskin, Finom’s chairman and co-founder, this capital will be utilized solely for growth initiatives, rather than operational expenses or product development. Stiskin emphasized that this unique funding round does not involve equity stakes from General Catalyst.

“Our core operations are generating positive cash flow, and all new investments and funding go directly toward attracting new clients,” Stiskin stated.

Expansion Beyond Digital Banking

While Finom primarily operates in the banking sector, it has broadened its offerings significantly this year. Key developments include:

• February 2024: Launch of an autonomous AI accounting agent tailored for entrepreneurs and freelancers across Europe.
• March 2024: Expansion into direct lending, featuring an AI-powered scoring engine.

Stiskin revealed that the credit offering, currently available in the Netherlands, is set to expand throughout Europe by the end of the year.

Growing Customer Base and Revenue Model

Finom now serves over 100,000 businesses across Germany, France, Spain, the Netherlands, and Italy, reporting positive unit economics in every market. The company’s revenue model primarily revolves around subscription fees, alongside transaction fees for select services. Additionally, Finom features a competitive cash-back program and has recently added a new revenue stream through interest on credit lines from its lending services.

Impressive Growth Metrics

Although Stiskin did not disclose specific revenue figures, he mentioned that Finom has doubled its annual recurring revenue in 2024 and is currently EBITDAM profitable.

Competitive Landscape

In terms of competition, Stiskin identified Qonto, a Paris-based challenger bank, as Finom’s closest rival. However, he asserts that Finom’s “stronger localization strategy and more comprehensive product suite” give it an edge in the market.

Company Growth and Leadership

Finom has expanded its workforce to 505 employees, marking a 31.5% increase from the previous year. In a significant leadership move, the company appointed Alessandro Camilotti, former head of finance and analytics at Klarna, as its CFO.

Funding History and Valuation Insights

Since its inception in 2020, Finom has raised nearly €190 million (about $214 million). Earlier this year, in February 2024, the startup announced a successful €50 million (around $56 million) Series B equity funding round co-led by General Catalyst and Northzone.

While the company has not disclosed its current valuation, PitchBook reported a post-money valuation of $150.7 million in November 2021 following a €30 million (approximately $33.8 million) seed funding round.

Expert Opinions on Finom’s Potential

Zeynep Yavuz, a partner at General Catalyst, expressed confidence in Finom’s execution in a market that remains largely untapped. She highlighted the startup’s modular infrastructure as a key factor that allows for efficient scaling across various geographies, while also emphasizing the importance of local adaptations.

“We see Finom’s proprietary anti-money laundering and know-your-customer engine as a standout advantage — not just for compliance, but for enhancing customer experience,” Yavuz added.

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