BlackFin Tech Weekly — February 19th, 2024
Every Monday, we publish a short digest which sums up last week’s Fintech activity
Greetings FinTech Enthusiasts,
Welcome to our weekly briefing on European fintech. We hope you had a pleasant weekend. In this edition you will notice deal flow has been quieter than usual, however we will still explore some noteworthy news as se always do. Let's dive in and see what's making waves this week!
Last week we saw 2 official fintech deals in Europe (only!!!) for a total amount of €51.3m raised with one deal in the Netherlands and one in Sweden.
Congratulations to Netherlands-based Finom, the challenger bank aimed at SMEs and freelancers, who has successfully raised €50m million in a Series B funding round with backers including Northzone and current investor General Catalyst. Well done also to Kameo, an investment platform facilitating direct investments in property project loans across Scandinavia , for having secured €1.29m from Incore Invest.
Let’s dive in
Finom, a European challenger bank aimed at SMEs and freelancers, has raised €50 million ($54 million) in a Series B equity round of funding. Founded out of the Netherlands in 2019, Finom lets businesses open up an online bank account in minutes and receive an IBAN to support cross-border transactions. On top of that, customers also receive physical or virtual bank cards, expense management tools, and integration support for accounting software. The round was co-led by Northzone and current investor General Catalyst, with participation from Target Global, Cogito Capital, Entrée Capital, FJLabs, and S16vc. The company intends to use the funds to continue to expand operations and its business reach, consolidating its position in its core market — Germany — while fueling its rapid expansion across France, the Netherlands, Spain, and the rest of Europe. Co-founded in 2020 by Andrey Petrov, Kos Stiskin, Oleg Laguta, and Yakov Novikov, Finom provides a product that combines accounting, financial management, and banking functions into a single mobile-first platform. In under four years, the company has garnered a customer base of 85,000 SMEs and individual entrepreneurs. Finom also has regional hubs in Cyprus, Poland, Spain, and Germany.
Stockholm-based Kameo, an investment platform facilitating direct investments in property project loans across Scandinavia, announced that it has secured £1.1M (approximately €1.29M) in a fresh round of funding. The investment came from Stockholm’s Incore Invest as part of a €2.65m share issuance. Having used the platform for years, the Incore team is backing Kameo’s loan marketplace solution to democratise access to secured real estate investments. Founded in 2016, Kameo is a financial platform democratising investment opportunities, connecting over 65,000 retail and institutional investors to secure loans for real estate projects in Scandinavia. Simultaneously, the firm provides flexible financing for real estate developers. Kameo has facilitated 1,000+ loans totaling over €0.44bn, offering investors an average net return of over 9 percent annually. The company’s largest shareholder since 2019 is ABG Sundal Collier. Incore Invest’s investment will support Kameo’s growth and expansion. Kameo aims to double facilitated loan value in 2024 and 2025.
In addition to this week’s fundraising activity, here is the European M&A activity of the week:
HiBob has announced the acquisition of Pento. HiBob is the developer of an HR platform which has a range of functionalities, including features tailored for improving the company culture, automation, pay transparency and DEI. HiBob was founded in 2015 in Tel Aviv, Israel, and has since raised $574m. UK-based Pento is a payroll automation platform with more than 400 customers in the UK. With the acquisition of Pento, HiBob aims to further strengthen its platform and come closer to its goal of offering its clients an “all-in-one” solution. Ultimately, HiBob wants to build a people management platform with deep integrations and a smooth customer experience.
Nukkleus has announced that it signed the term sheet for the acquisition of Mercury Global. Nukkleus Inc is a Fintech group, listed on the NASDAQ, that acquires, builds and scales fintech and blockchain services businesses. The group currently has a portfolio of four companies and is now adding Mercury Global. Mercury Global is a cross border payments company which offers personal and business accounts. Mercury Global has been founded in 2007 in London and is operating in the UK and South Africa. Nukkleus is seeking to reinforce its cross-border payment capabilities as well as entering new markets, such as South Africa, with the acquisition of Mercury Global. The transaction is to be done in common stock and cash once it has been approved by the regulators.
Crédit Agricole Consumer Finance has announced its intention to buy Pledg. Crédit Agricole Consumer Finance is part of the Crédit Agricole Group, the second largest French banking group. Crédit Agricole Consumer Finance specializes in consumer credit and mobility solutions with a range of associated services and has operations across Europe. Pledg is a fintech company, based in Paris, focusing on fractional and deferred payments. Its product range includes e-commerce, BNPL and credit scoring solutions. Crédit Agricole Consumer Finance seeks to use Pledg’s technology and know-how to expand the offerings of Sofinco, its French product distribution entity.
And finally, here are the news that caught our eye last week:
Citi, in collaboration with Wellington Management and WisdomTree, has embarked on a venture to explore the tokenization of private markets using blockchain technology. Their partnership aims to unlock new efficiencies and functionalities not feasible with traditional assets. Through a proof-of-concept conducted on the Avalanche Spruce institutional test Subnet, the partners showcased the potential of smart contracts to automate processes and enhance compliance, with ABN Amro participating as a simulated traditional investor.
Harry Karonis, CEO of Viva Wallet, has initiated legal action against JPMorgan, alleging deliberate obstruction of his company's growth and suppression of its valuation. Karonis claims JPMorgan's tactics, including hindering expansion into new markets, are aimed at maintaining control over Viva Wallet's worth. In response, JPMorgan has filed a counterclaim, accusing Karonis of actions undermining its contractual and legal rights as an investor. This legal dispute reflects a pattern observed in JPMorgan's past contentious acquisitions, highlighting a potential precedent for similar allegations and legal battles.
Revolut has rolled out an innovative AI-powered anti-scam feature, leveraging machine learning to safeguard customers from authorized push payment fraud. This advanced security layer automatically assesses card payments for potential scam indicators and declines suspicious transactions. Revolut has seen a substantial 30% reduction in fraud losses related to card scams involving investments, underscoring the effectiveness of this proactive approach in mitigating financial risks for customers.
Following allegations of accounting irregularities and product failures by Hindenburg Research, Temenos, a Swiss core banking vendor, witnessed a significant 25% decline in its share price. In response, Petrus Advisers, a major investor, intensified its push for the removal of interim CEO Andreas Andreades, citing concerns over strategic direction. While acknowledging improvements in Temenos' performance, Petrus insists on Andreades' ouster, accusing him of prioritizing short-term gains. Despite the severity of the allegations, Petrus believes they do not pose a fundamental threat to Temenos' success but demands immediate action to address them.