Finom, an Amsterdam-based digital bank for small- and medium-sized businesses, has raised €92.7 million (roughly $105 million) in a growth investment from General Catalyst’s Customer Value Fund, the company tells TechCrunch exclusively.
The capital infusion “will be used exclusively and only for growth” and not for operational expenses or product development, Kos Stiskin, Finom’s chairman and co-founder, told TechCrunch. He described it as a nontraditional funding round in which General Catalyst doesn’t take any equity.
“[O]ur core operations are generating positive cash flow, and all new investments and funding go directly toward attracting new clients,” Stiskin said.
Finom is primarily in the banking business, but this year, the company expanded its offerings beyond digital banking services. In February, Finom unveiled what Stiskin described as an “autonomous AI accounting agent” for entrepreneurs and freelancers in Europe. And in March, the startup expanded into direct lending, which incorporates an AI-powered scoring engine.
Finom’s credit offering, available in the Netherlands, will be expanded across Europe by year-end, Stiskin added.
Today, Finom counts over 100,000 businesses across Germany, France, Spain, the Netherlands, and Italy as customers, reporting positive unit economics in all markets. Its revenue model is primarily subscription-based. Finom also generates revenue through transaction fees for certain services and offers a competitive cash-back program. The recent expansion into lending also opened a new revenue stream through interest on credit lines.
Stiskin declined to reveal hard revenue figures, but he told TechCrunch that Finom doubled its annual recurring revenue in 2024 and that the company is “EBITDAM [earnings before interest, taxes, depreciation, amortization, and marketing] profitable.”
In an interview, Stiskin described Finom’s closest competitor as Qonto, a Paris-based challenger bank that in January 2022 announced a massive €486 million (~$552 million) Series D funding round. But Stiskin believes that Finom has a “stronger localization strategy and more comprehensive product suite.”
Presently, Finom has 505 employees, up 31.5% compared to last year. Last September, the company named Alessandro Camilotti, former head of finance and analytics EU at Klarna, as its CFO.
In total, Finom has raised nearly €190 million (roughly $214 million) since its inception in 2020. In February 2024, Finom announced it had raised €50 million (roughly $56 million) in a Series B equity round of funding co-led by General Catalyst and Northzone.
The startup has declined to reveal its valuation. According to PitchBook, Finom was valued at $150.7 million post-money in November 2021 after a €30 million (roughly $33.8 million) seed funding round from VCs Target Global, Tal Ventures, and General Catalyst.
Zeynep Yavuz, partner at General Catalyst, believes that Finom has “shown strong execution in a market that is still deeply underpenetrated.” She also thinks its modular infrastructure gives the company the ability “to scale efficiently” across geographies, “leveraging shared capabilities while localizing where needed.”
“We see Finom’s proprietary anti-money laundering and know-your-customer engine as a standout advantage — not just for compliance, but for customer experience,” Yavuz said.