Finom, an Amsterdam-based digital financial institution for small- and medium-sized companies, has raised €92.7 million (roughly $105 million) in a progress funding from General Catalyst’s Customer Value Fund, the corporate tells TechCrunch completely.
The capital infusion “will be used exclusively and only for growth” and never for operational bills or product growth, Kos Stiskin, Finom’s chairman and co-founder, informed TechCrunch. He described it as a non-traditional funding spherical through which General Catalyst doesn’t take any fairness.
“[O]ur core operations are generating positive cash flow, and all new investments and funding go directly toward attracting new clients,” Stiskin stated.
Finom is primarily within the banking enterprise, however this yr, the corporate expanded its choices past digital banking companies. In February, Finom unveiled what Stiskin described as an “autonomous AI accounting agent” for entrepreneurs and freelancers in Europe. And in March, the startup expanded into direct lending, which includes an AI-powered scoring engine.
Finom’s credit score providing, obtainable within the Netherlands, will probably be expanded throughout Europe by yr’s finish, Stiskin added.
Today, Finom counts over 100,000 companies throughout Germany, France, Spain, the Netherlands, and Italy as clients, reporting constructive unit economics in all markets. Its income mannequin is primarily subscription-based. Finom additionally generates income by means of transaction charges for sure companies and affords a aggressive cashback program. The current enlargement into lending additionally opened a brand new income stream by means of curiosity on credit score strains.
Stiskin declined to disclose arduous income figures, however he informed TechCrunch that Finom doubled its annual recurring income in 2024 and that the corporate is “EBITDAM (earnings before interest, taxes, depreciation, amortization, and marketing) profitable.”
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In an interview, Stiskin described Finom’s closest competitor as Qonto, a Paris-based challenger financial institution that in January 2022 introduced an enormous €486 million ($548 million) Series D funding spherical. But Stiskin believes that Finom has a “stronger localization strategy and more comprehensive product suite.”
Presently, Finom has 505 workers, up 31.5% in comparison with final yr. Last September, the corporate named Alessandro Camilotti, former head of finance and analytics EU at Klarna, as its CFO.
In complete, Finom has raised almost €190 million (roughly $214 million) since its inception in 2020. In February 2024, Finom introduced it had raised €50 million (roughly $56 million) in a Series B fairness spherical of funding co-led by General Catalyst and Northzone.
The startup has declined to disclose its valuation. According to PitchBook, Finom was valued at $150.7 million post-money in November 2021 after a €30 million (roughly $33.8 million) seed funding spherical from VCs Target Global, Tal Ventures, and General Catalyst.
Zeynep Yavuz, companion at General Catalyst, believes that Finom has “shown strong execution in a market that is still deeply underpenetrated.” She additionally thinks its modular infrastructure provides the corporate the power “to scale efficiently” throughout geographies, “leveraging shared capabilities while localizing where needed.”
“We see Finom’s proprietary anti-money laundering and know-your-customer engine as a standout advantage — not just for compliance, but for customer experience,” Yavuz stated.