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  • Investments
  • 13 February 2024
  • 1 min read
  • Words: Northzone

Our growth investment in Finom: The future of SME banking in Europe

We are excited to announce our growth investment in Finom, a pan-European SME neobank. This €50 million Series B round of financing was co-led by Northzone alongside General Catalyst, and will assist Finom in consolidating its position in its core market — Germany — while fuelling its rapid expansion across France, the Netherlands, Spain, and the rest of Europe.

Co-founders Andrey Petrov, Kos Stiskin, Oleg Laguta, and Yakov Novikov bring a wealth of entrepreneurial experience from their success building SME-focussed neobanks. Since its launch in 2020, Finom has rapidly emerged as a leading neobank with a primary focus on SMEs. The company is on a mission to revolutionise banking services for millions of entrepreneurs and businesses throughout Europe. 

In just under four years, Finom has garnered a customer base of 85,000 SMEs and individual entrepreneurs who rely on the platform for a range of banking services, including invoice and payables processing, foreign exchange transactions, expense management, and various other activities. Finom is headquartered in Amsterdam with regional hubs in Cyprus, Poland, Spain, and Germany. 

SMEs serve as the backbone of the European economy, contributing approximately 4 trillion euros across roughly 24 million businesses. Despite giant strides in consumer banking over the last decade, SME banking remains somewhat unexplored by new-age entrants, creating frustration for European entrepreneurs grappling with the quality and ease-of-use gap between their personal and business bank accounts. In contrast, Finom has successfully created superior core banking and software products that are loved by the customers, supported by some of the best metrics in the industry across NPS, retention, and organic growth.

Commenting on the announcement, our Partner Sanjot Malhi shares: “Finom has a truly best-in-class core banking product, which forms the backbone of their customers’ financial stack. However, the true platform potential of Finom is seen through its payments and microservices software offering for SMEs, with clear demonstrated success across several major Western European economies. We look forward to partnering with the team and seeing Finom emerge as a European market leader.”

We have long seen the potential of the European SME banking and financial software space and look forward to supporting Finom on their mission to empower European businesses and entrepreneurs with a first-rate digital banking experience.