Finom, an Amsterdam-based digital bank serving small- and medium-sized businesses, has secured €92.7 million (approximately $105 million) in a growth capital investment from General Catalyst’s Customer Value Fund. The funding, which involves no equity exchange, will exclusively support customer acquisition and market expansion, rather than operational expenses or product development, according to Chairman and Co-founder Kos Stiskin.
Stiskin emphasized the uniqueness of the funding arrangement, pointing out that the company’s core operations have already achieved positive cash flow, thus enabling them to channel all fresh investments directly into growth initiatives.
Originally focused on digital banking services, Finom has diversified its product lineup considerably in the past year. In February, it introduced an AI-powered accounting assistant tailored specifically for the needs of entrepreneurs and freelancers active across Europe. Shortly thereafter, in March, the startup scaled its product offering further by entering the direct lending market. This new initiative is underpinned by an AI-driven credit-scoring platform, providing a robust basis for reliable and efficient risk assessment.
Currently available in the Netherlands, Finom plans to extend its lending activities to additional European markets by the end of the year. With over 100,000 business clients across Germany, France, Spain, Italy, and its home country, Finom reports profitable unit economics across every region in which it operates. The business primarily operates on a subscription model, bolstered by transaction-based fees and a distinctive cashback incentive program. Its recent entry into the lending market has created an additional revenue stream through interest on credit facilities.
Though declining to disclose specific revenue figures, Stiskin mentioned that Finom successfully doubled its annual recurring revenue in 2024 and has achieved EBITDAM profitability—earnings before interest, taxes, depreciation, amortization, and marketing expenses.
With more than 500 employees, representing a growth of over 30% from last year, Finom recently strengthened its management team with Alessandro Camilotti, former head of European finance and analytics at Klarna, appointed as CFO.
To date, the startup has cumulatively raised approximately €190 million ($214 million) since its founding in 2020, including a notable €50 million Series B equity financing secured from General Catalyst and Northzone announced early last year. While Finom has not disclosed a current valuation, its post-money valuation was pegged at roughly $150.7 million in November 2021 following a €30 million seed round from investors including Target Global, Tal Ventures, and General Catalyst.
Zeynep Yavuz, partner at General Catalyst, praised Finom’s execution and performance in an underserved market, highlighting its modular infrastructure as a key strength that supports cost-effective scalability across various locales. Additionally, Yavuz noted Finom’s proprietary approach to anti-money laundering (AML) and Know Your Customer (KYC) procedures as standout features, beneficial both for legal compliance and in improving customer experience.
Positioning itself competitively against rivals such as Paris-based Qonto, which raised a massive €486 million Series D round in early 2022, Finom asserts that it offers more comprehensive products and a stronger localization strategy for regional markets. The new funds are set to reinforce Finom’s ambitions for sustained growth and wider market penetration throughout Europe.
