Amsterdam-based Finom, a fast-growing digital bank tailored for small- and medium-sized businesses (SMBs), has raised $105 million (€92.7 million) in fresh growth capital. The funding, led by General Catalyst’s Customer Value Fund, marks a significant push to scale its European footprint and expand customer acquisition — without diluting equity.
What makes this deal unique is its structure: Finom will use the capital exclusively for growth activities, not for operating costs or product development. According to chairman and co-founder Kos Stiskin, the company is already generating positive cash flow from its core operations. That financial strength allows Finom to focus new funding entirely on onboarding new clients.
Finom has rapidly positioned itself as a key player in Europe’s challenger banking space by serving freelancers and SMBs with a fully digital, subscription-based platform. It currently supports over 100,000 businesses across Germany, France, Spain, the Netherlands, and Italy. The bank has seen solid traction in each of these markets, reporting profitable unit economics across the board.
In 2024, Finom doubled its annual recurring revenue and reached EBITDAM profitability — a rare achievement in the fintech world, especially for a company that launched just four years ago. While specific revenue figures remain under wraps, the company’s growth speaks volumes about its operational discipline and demand among European entrepreneurs.
Earlier this year, Finom took a bold step beyond traditional banking. In February, it introduced an autonomous AI-powered accounting agent tailored for freelancers and solo business owners. Then in March, it moved into direct lending, rolling out an AI-driven credit scoring engine alongside a new credit line offering in the Netherlands. By the end of the year, that credit product will be available across Europe, unlocking a new stream of interest-based revenue.
Beyond subscriptions and interest income, Finom also earns from transaction fees and runs a competitive cashback program for its users — helping it stand out in a crowded digital banking space. Stiskin emphasized that Finom’s edge comes from its deep localization strategy and broader product suite, comparing it favorably to French competitor Qonto, which previously raised over $548 million.
With a headcount that has grown to 505 employees — a 31.5% increase year-over-year — Finom is scaling quickly. The company recently appointed Alessandro Camilotti, a former Klarna executive, as its CFO to help steer this next phase of growth.
The startup has now raised nearly $214 million (€190 million) in total since launching in 2020. In early 2024, it secured $56 million in a Series B equity round co-led by General Catalyst and Northzone. Its last disclosed valuation, per PitchBook, stood at $150.7 million post-money following a 2021 funding round — although the company has not confirmed its current valuation.
General Catalyst partner Zeynep Yavuz praised Finom’s modular infrastructure, saying it allows for efficient scaling while adapting to local market needs. She also pointed to Finom’s in-house anti-money laundering and know-your-customer systems as major differentiators — not just for compliance, but for creating a seamless customer experience.
As Finom builds momentum with its AI-first approach and pan-European ambitions, it’s becoming a top challenger bank to watch in 2025.
