FINOM, an Amsterdam-based fin-tech company, has secured a €92.7M investment from General Catalyst’s Customer Value Fund. This strategic funding promises to bolster FINOM’s expansion endeavors, consolidating its presence in the digital financial services industry geared toward small and medium-sized enterprises (SMEs) and entrepreneurs. With the spotlight frequently on such digital banking solutions, this development adds a new chapter to FINOM’s evolving story, which already features noteworthy milestones in SME-focused financial innovations.
Historically, FINOM’s establishment in 2020 by Andrey Petrov, Kos Stiskin, Oleg Laguta, and Yakov Novikov marked a notable entry into the world of fintech for SMEs. This journey saw the development of a proprietary core banking system enhancing financial operations for businesses. FINOM’s past endeavors further include its swift account setups and the integration of sophisticated online banking services now prevalent across its offerings in Europe under an Electronic Money Institution (EMI) license.
What Will the New Funding Support?
The newly acquired capital will primarily support FINOM’s ambition to escalate its growth and expand its services. Importantly, the funds are not allocated for routine operational costs or product enhancement; instead, they focus solely on scaling the company’s current business model. This approach reflects FINOM’s broader vision to grow rapidly while maintaining its fiscal discipline and profitability.
Marking Another Milestone in Lending
Just two months ago, FINOM marked an important step by entering the direct lending sector. Its inaugural credit line issuance to a small business in the Netherlands symbolized an effort to capture new markets. As part of its new funding scheme for SMEs, FINOM offers credit lines from €2,000 to €50K with convenient six-month repayment schedules, underlining its commitment to provide accessible financial solutions.
The company’s offerings, supported by AI-powered credit assessments, ensure that decisions are efficiently made within minutes—a feature that could be enticing to SME clients seeking swift financial responses. Along with flexible repayment options and ease of application, FINOM’s comprehensive platform facilitates seamless transactions tailored to entrepreneurs.
FINOM’s workforce has also seen significant growth, with a 31.5 percent increase in staff, now totaling 505 employees. This expansion underscores its robust strategy aimed at amplifying service capabilities while supporting its expanding customer base.
The recent doubling of FINOM’s annual recurring revenue in 2024 and its reported profitability in earnings before interest, taxes, depreciation, and amortization (EBITDA) exemplify the financial health crucial for sustaining further growth. This backdrop shapes a critical view of FINOM’s approach towards capturing extended market presence in SME banking solutions.
FINOM’s latest developments in investment and lending mark continuations of its proactive strategy in SME-focused financial services. Such a concentrated investment focus aligns with existing economic narratives around fintech solutions pushing the envelope for small businesses. As the fintech landscape evolves, FINOM remains positioned to strengthen its stature in providing comprehensive financial services, potentially setting a benchmark for other digital banks targeting SMEs. With the increased backing, FINOM appears committed to fortifying its growth trajectory while facilitating diverse financial tools that meet entrepreneurs’ needs efficiently.
