Amsterdam-based challenger bank bunq, the second largest neobank in the European Union, has secured an additional €44.5 million in growth capital. This brings the total capital injected into the Dutch fintech this year to nearly €100 million.
This fresh capital allows the mobile bank to further accelerate its international expansion and continue its rapid growth. Current investors founder Ali Niknam, Pollen Street Capital, and Raymond Kasiman joined the round and committed to an investment valuation of €1.65 billion, despite this year’s market downturn.
Previously, bunq raised $228 million in the largest Series A round secured by a European fintech in July 2021. The round was led by Pollen Street Capital, a UK-based private equity firm that focuses on financial services. The investment valued bunq at approximately $1.9 billion, making it one of the most valuable neobanks in Europe.
“It’s been a truly magical year for bunq: we’re rapidly expanding and have seen massive deposit growth. With more and more people entrusting their money to us, we’re convinced that we should double down on our momentum and cement the way forward for future growth, said Ali Niknam, founder and CEO of bunq.
Self-funded challenger bank
Ali Niknam, a serial entrepreneur, founded bunq in 2012 after securing the first European banking permit. Until 2021, he self-funded the challenger bank. To date, he invested nearly $112 million in the company. Apparently, bunq had the independence and freedom to build a bank focusing on the needs and wants of users.
bunq booked its first net profit in the last quarter of 2022 and expects to have its first full year of profit in 2023.
First Dutch bank to embrace tech
bunq was also the first Dutch bank to introduce ‘4 Fingers Touchless ID’, making payments easier and more secure. An advantage of the system to use biometrics without the need for a reader built into your phone. bunq’s banking app is using VeridiumID and its hand recognition software, 4 Fingers TouchlessID to authenticate users. The technology can be applied to any modern smartphone with at least a five-megapixel camera and flash, not just those with fingerprint sensors.
By capturing all four fingerprints at once, 4 Fingers is touted to have a higher level of precision and reliability for authentication than other biometrics such as face, voice or a single fingerprint.
