Small business challenger bank Finom raises another $12 million to expand in Europe

B2B financial service startup Finom — which provides online financial services for SMEs, freelancers and the self-employed in Europe — has raised an additional $12 million (€10.3 million) to add to its previous seed round of €6.5 million last April. The total funding raised in 2020 is now €16.8 million, and this is before the company has done a Series A round. Investors include Target Global (Germany), Cogito Capital (Poland), Entree Capital (Israel), Avala Capital (Germany), Tal Capital (USA) and AdFirst Ventures (EU).

The additional investment round will allow Finom to extend its licensed activities, develop product and enter new European markets.

Founded in 2019, Finom is based out of the Netherlands and was founded by the team previously responsible to Modulbank, a B2B online bank in Russia. So far it is providing an e-invoicing service in Italy, and will launch in France and Germany this October.

Similar to other online challenger banks aimed at SMEs, the company is targeting countries where there is a relatively low penetration of online SME banking players, such as Poland, Spain, Austria, Switzerland.