Netherlands-based challenger bank Bunq is raising $228 million in Series A funding, the largest by a European fintech company.
Pollen Street Capital will lead the funding round alongside Bunq’s founder and CEO Ali Nikanam, who is investing $29.5 million. Since its inception, Bunq has remained self-funded by Nikanam.
The funding deal will see Bunq also acquire Irish lending company Capitalflow Group previously owned by Pollen Street Capital, TechCrunch reports.
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Since the company’s inception in 2012, Bunq has turned down potential venture capital funding over the years. Over the period, Niknam has invested $116.6 million of his own capital.
“Everything has a right time. In the beginning of Bunq, it was important to get a laser user focus in the company. Having to also focus on fundraises and the needs of investors distracts. Bunq now is mature enough to start scaling up significantly, so more capital is welcome,” Niknam said.
Bunq growth strategy
Part of Bunq’s growth strategy is to acquire small companies to navigate the highly competitive market, especially in Europe.
Currently, Bunq offers bank accounts and debit cards supported by a mobile application. Users can use their app to send money, share a bunq.me payment link with other people, split payments among other services.
In April this year, Bunq user deposits surpassed the €1 billion mark. With the company running a subscription plan, it expects profitability in the future serving 30 European markets.
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