BlackFin Tech Weekly — January 13th, 2025
Every Monday, we publish a short digest which sums up last week’s Fintech activity.
Hello FinTech Friends,
Welcome to another week of fintech insights. Let’s explore the news and trends shaping the industry!
Over the last week, we saw 5 fintech deals in Europe, raising a total of €213 million, with 2 deals in Germany, 1 deal in France, 1 deal in Switzerland, and 1 deal in Ireland.
Congratulations to the German Banking-as-a-service (BaaS) platform Solaris, which is set to receive €150m of financing. Reportedly, SBI Holdings is acquiring a majority stake for €100m, with a further €50m contributed by the German exchange group Boerse Stuttgart and unnamed existing investors. Nomupay, based in Ireland, facilitates cross-border payment acceptance and payout disbursements to businesses via API integration, and has now secured €34.2 million in Series B funding from Endeit Capital, Uneti Ventures, and existing investors. And finally, congrats for the Swiss digital banking services platform nsave closing a €17.5 million Series A round led by TQ Ventures, with participation from Sequoia Capital, Y Combinator, ACE Ventures and the Proton Foundation.
Let’s dive in
SBI Holdings is set to secure a majority stake in Solaris for €100m, with the BaaS platform raising an additional €50m from Boerse Stuttgart and unnamed existing investors. Founded in 2005, Solaris offers a platform for digital banking services, enabling fintechs and other businesses to integrate financial products into their offerings. Customers span across the EU and the UK, and include established companies like Samsung or the automobile association ADAC, but also Fintechs like the sustainable bank Tomorrow or the cryptocurrency exchange Bitpanda. The funding round comes after reports of accounting issues and a delay in sales coming in at the end of last year.
Dublin-based payment facilitator Nomupay has secured €34.2 million in Series B funding from Endeit Capital, Uneti Ventures, and existing investors. Formed out of regional payment licenses from the German Fintech Wirecard in 2023, Nomupay facilitates cross-border payment acceptance and payout disbursements via API integration. The company has reportedly seen 100% annual revenue growth over the past two years and is projected to turn profitable this year with an ARR of approximately $20 million. The funds will be used to expand its focus on cross-border payments for merchants across Asia and the Middle East.
nsave, a fintech that offers reliable $€£ accounts for individuals from countries with high inflation and unstable banking systems, closed a €16.6 million Series A round led by TQ Ventures, with participation from Sequoia Capital, Y Combinator, ACE Ventures and the Proton Foundation. Founded in 2022 by former Rhodes Scholars Amer Baroudi and Abdallah AbuHashem, nsave focuses on young professionals who relocate abroad and face exclusionary compliance processes due to their country of origin, as well as individuals from high-inflation economies. This investment is intended to fuel nsave's growth and facilitate the launch of its new investment product, giving customers access to US equities, ETFs, and funds managed by asset managers, contingent on onboarding and compliance checks.
In addition to this week’s fundraising activity, here is the European M&A activity of the week:
Elite, a prominent provider of business management solutions for law firms and professional services organizations, has acquired Tranch, a UK-based B2B buy now, pay later (BNPL) platform. While the financial details of the deal remain undisclosed, this acquisition aims to integrate Tranch's BNPL technology into Elite's offerings, providing clients with flexible payment options and enhanced cash flow management. Tranch's innovative financing model allows businesses to pay for services in installments, fostering financial flexibility. This strategic acquisition bolsters Elite's market presence in the professional services sector and furthers its mission to deliver comprehensive financial solutions to its global clientele.
Cegid, a France-based leader in cloud management solutions for finance, HR, and entrepreneurship, has entered into a definitive agreement to acquire sevDesk, a German provider of cloud-based pre-accounting and e-invoicing solutions for micro and small-to-medium-sized businesses (SMBs). Although the financial terms of the transaction were not disclosed, the deal is expected to close by Q1 2025. This acquisition underscores Cegid's commitment to accelerating its European growth, particularly in the DACH region. By integrating sevDesk's innovative tools, Cegid seeks to strengthen its position in the SMB cloud software market and expand its portfolio of digital solutions for accounting and tax management, delivering greater value to small businesses.
And finally, we bring you some stories from the last week in the Fintech universe:
Shawbrook's private equity owners, BC Partners and Pollen Street Capital, are considering either selling the UK small business lender or listing it on the London Stock Exchange with a target valuation of £2bn, potentially in the first half of this year. Goldman Sachs and / or Barclays will potentially oversee the IPO, though the plans are contingent on market conditions. The move comes amid a difficult year for the London Stock Exchange, which saw a significant net outflow of companies in 2023.
The European Payments Initiative (EPI) successfully completed Proof-of-Concept transactions in November and December, integrating its Wero wallet into the online platform of German football club FC Kaiserslautern, with further trials planned for 2025. The e-commerce module will initially handle standard payments and refunds, with more complex payment models added over time. EPI plans to expand its services in Germany, Belgium, and France, with in-store payments and additional features like BNPL and loyalty programs set for 2026.
Latin American payments provider DLocal, valued at around $3.6 billion, is exploring a potential sale with the help of Morgan Stanley, according to Reuters. The company has attracted interest from private equity firms and large fintech providers, though a deal is not guaranteed. This marks DLocal's second attempt to explore a sale, following unsuccessful talks last year due to disagreements over financial terms.
Have a great start into the week!
Sources of the fundraising reports