According to foreign media TechCrunch , Dutch mobile bank Bunq recently received US$228 million in Series A financing, with a valuation of US$1.9 billion. This round was led by Pollen Street Capital, and Bunq founder Ali Niknam participated in the investment of US$29.5 million. As part of the transaction, Bunq also acquired Capitalflow Group, an Irish credit company under Pollen Street Capital. This round of investment will become one of the highest A rounds of financing in Europe’s technology sector.
Bunq was founded in 2012 and is headquartered in Amsterdam, the Netherlands. Its founder, Ali Niknam, is a serial entrepreneur who has founded companies such as web hosting and domain name provider TransIP. Bunq mainly provides free trading accounts for companies or individuals through mobile applications, which is convenient for users to control bank cards such as MasterCard through Bunq, request payments from other accounts, split bills, and make real-time payments.
In April this year, Bunq joined the TARGET, an instant payment settlement service developed by the European Central Bank, to promote the development of mobile payments in Europe.
In terms of profit model, Bunq mainly relies on subscription fees. It is free to create and use a few accounts, but when users need to manage more than 20 accounts or other transaction services at the same time, they need to pay subscription fees ranging from 2.99 Euros to 17.99 Euros.
In addition to mobile payment services, Bunq is also actively exploring other businesses. For example, Bunq began providing mortgage loan services to Dutch users in July last year, and the business has grown more than four times in six months. Bunq also launched a software solution Fintech phos, which can turn smartphones that support Android NFC into POS terminals, replacing traditional physical POS machines, and plans to promote it to retailers in European markets such as Belgium, France, and Ireland.
Bunq function module (photo provided by the enterprise)
This round of financing is Bunq’s first time to accept external investment. Prior to this, the entire operating amount came from a private investment of US$160 million from its founder, Ali Niknam.
Talking about why it is necessary to introduce external funds for the first time at this time, Niknam said that the early Bunq mainly focused on user acquisition and product services, but now Bunq has entered more than 30 European markets, business products are mature enough, and deposits on the platform have reached 1 billion euros, it is also expected to achieve a monthly balance of payments this year, and it is possible to consider introducing more funds to expand the scale.
In terms of growth strategies, Niknam believes that in recent years, the European financial technology sector has been highly competitive, and Bunq hopes to further integrate the market through the acquisition of small companies.
In the field of mobile banking, a number of Internet companies have emerged in Europe that want to replace traditional banking services: British company Revolut was founded in 2015 and currently has more than 9 million users; German company N26 was founded in 2013 and has accumulated more than 5 million users worldwide .
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/dutch-financial-technology-company-bunq-receives-us228-million-in-investment-one-of-europes-largest-series-a-financings-in-this-field/
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