Amsterdam-based challenger bank Bunq has always been funded by its Chief Executive Officer Ali Niknam. The bank decided to step out of its internal funding to find an external source. At the first time of asking, it has raised $228 million.
Although Niknam is also involved in the round, it was led by Pollen Street Capital. Niknam invested $29.5 million of the total fund, and the deal will help the bank acquire Capitalflow Group, previously owned and managed by Pollen Street Capital.
Niknam seeks external funding
Bunq was launched nine years ago by Niknam, who has invested a lot of his funds into the project. Apart from his contributions in the recent funding round, he has already coughed out $116.6 million of his funds into the bank.
However, such investment has not been futile, at least not by booming situation within the bank. The company says it is looking at a monthly break-even in 2021.
Earlier this year, Bunq surpassed €1 billion when it comes to user deposits, so it’s a bit surprising for many to see the company raising funds after rejecting such steps for many years.
Highest ever funding for a European fintech
Niknam commented on the funding, saying that it’s the right time for the company to take a further step towards its growth.
Bunq now is mature enough to start scaling up significantly, so more capital is welcome,” he said. With the funding round, the company’s valuation has now hit $1.9 billion (€1.6 billion)
Nikinam added that Bunq was established to challenge what banking is and can do. The institution’s first goal has been to put its users first in whatever decision it wants to take.
By considering the users first in any decision, the bank has become super focused to make life easier in a more sustainable way. The $228 million makes it the highest ever funding for a European fintech.
The company wants to use the fund to acquire and grow smaller companies, which will also fuel its growth strategy. Over the past years, challenger banks have been representing a highly competitive market in Europe. However, Bung wants to set the pace in the industry and offer more unique products to users.
It is focusing on products that will make it more convenient for users to send and receive money.