Amsterdam-based fintech firm Finom, known for its innovative banking services aimed at small and medium-sized businesses (SMBs), has secured a significant funding boost, closing a €115 million Series C equity round (approximately $133 million). This new capital arrives shortly after the company recently secured a $105 million growth funding package from General Catalyst, an existing investor since 2021.
Finom, in operation for five years, continues to attract significant attention from venture investors, driven by its strong revenue performance; according to company statements, annual revenue doubled in 2024 alone. The latest funding round was spearheaded by AVP (formerly AXA Venture Partners), and saw participation from new investor Headline Growth, alongside existing investors Cogito Capital, General Catalyst, and Northzone.
Central to Finom’s value proposition is a comprehensive financial platform catering specifically to the needs of European SMBs. The company seamlessly integrates banking, invoicing, and advanced financial management solutions, including AI-powered accounting tools aimed at reducing or even eliminating the need for traditional accountants. CEO Andrey Petrov underscored this point, explaining the potential for entrepreneurs to rely less on accountants by leveraging Finom’s automated tools.
The substantial injection of capital will enable Finom to pursue ambitious growth plans, including a highly publicized objective to reach one million business customers by 2026. Although CEO Petrov admits the target is primarily motivational, the fresh influx of funds undoubtedly bolsters the feasibility of reaching significant market penetration within Europe’s estimated 26 million SMB community.
Interestingly, the timing of the equity raise aligns closely—and somewhat unexpectedly—with Finom’s prior non-equity growth investment from General Catalyst’s Customer Value Fund (CVF). Unlike traditional equity investments, CVF funding was granted exclusively for growth-specific purposes, predominantly marketing expenses, with General Catalyst looking to directly recoup its investment through revenue growth rather than equity.
Co-founder and chairman Kos Stiskin noted the unusual timing of the two funding deals, stating that one took longer than anticipated while the other closed much quicker, resulting in both arriving in rapid succession. While Finom declined to reveal the precise valuation achieved in this recent round, Stiskin did indicate that the valuation was roughly double the undisclosed figure associated with the company’s 2024 Series B, which netted $54 million.
The dual nature of the funding arrangement, combining equity and non-dilutive growth financing, appears to have strengthened investor confidence during the due diligence process. With General Catalyst having recently completed a comprehensive assessment of Finom, potential investors were provided with enhanced credibility and reassurance concerning the fintech’s financial and operational fundamentals.
Besides funding its customer acquisition strategies and market expansion initiatives, Finom is also considering strategic acquisitions. CEO Petrov indicated that the company intends to explore potential mergers or acquisitions aimed at either enlarging its client base or broadening its portfolio of offerings—a notable change of direction given that Finom’s sole previous acquisition was UK cross-border payments firm Kapaga in 2022.
Currently, Finom primarily operates using electronic money institution (EMI) licenses in core markets such as the Netherlands, France, Italy, and Spain. In Germany, it has partnered with Solaris, which possesses a full banking license. Even within licensing constraints, Finom recently ventured into lending in the Netherlands, an integral product segment the company views as essential to comprehensive financial service offerings for SMBs.
Looking ahead, Finom aims to further extend its services horizontally—offering deposits and loans—and vertically, encompassing end-to-end financial management solutions such as tax payments and detailed reporting. Internally, the firm has also embraced artificial intelligence, implementing AI-powered agents to automate routine tasks and optimize operational efficiency. With a current workforce of 500, the company anticipates moderate additional hiring, though it expects much of the scale-up to occur through technology-driven automation rather than a significant increase in human headcount.
The leadership structure at Finom has evolved as well. Petrov now serves as the sole CEO after previously sharing the position with fellow co-founder Yakov Novikov, who remains closely involved as an advisor alongside Oleg Laguta. Petrov, Novikov, and Laguta previously co-founded Russian digital banking platform Modulbank, affording them substantial experience as they shift their strategic focus toward expanding Finom’s presence and product offerings across European markets.
According to Stiskin, Finom views SMBs as critical economic engines in Europe and intends to continue positioning itself strategically to address underserved sectors within this vast community.
