Finom, an Amsterdam-based digital banking platform tailored for small and medium-sized businesses (SMBs), has successfully closed a €115 million Series C equity round, approximately $133 million, as exclusively reported by TechCrunch. This substantial investment underscores the growing investor confidence in Finom’s mission to revolutionize financial services for European entrepreneurs.
Strategic Investment and Growth Trajectory
The Series C round was led by AVP (formerly AXA Venture Partners), with participation from new investor Headline (formerly e.ventures) through Headline Growth. Existing investors, including Cogito Capital, General Catalyst, and Northzone, also contributed to the round. This latest funding brings Finom’s total capital raised to approximately $346 million, positioning the company as a formidable player in the European fintech landscape.
This funding milestone follows closely on the heels of a $105 million growth investment from General Catalyst’s Customer Value Fund, announced in May 2025. Notably, this earlier investment was structured uniquely, allowing Finom to finance customer acquisition efforts without diluting shareholder equity, as General Catalyst assumed the downside risk. This innovative approach reflects a deep alignment between Finom and its investors, emphasizing sustainable growth and long-term value creation.
Comprehensive Financial Solutions for SMBs
Since its inception in 2020, Finom has been dedicated to simplifying financial management for SMBs across Europe. The platform offers a suite of services, including digital banking, invoicing, payment processing, and expense management, all designed to streamline operations for entrepreneurs. In February 2025, Finom expanded its offerings by introducing an AI-powered accounting assistant, enabling users to manage their finances more autonomously. This was followed by the launch of direct lending services in March 2025, featuring an AI-driven scoring engine to facilitate credit assessments.
Currently, Finom serves over 100,000 businesses across Germany, France, Spain, the Netherlands, and Italy. The company reports positive unit economics in all markets, with a revenue model primarily based on subscription fees, supplemented by transaction fees for certain services and a competitive cash-back program. The recent expansion into lending has also introduced a new revenue stream through interest on credit lines.
Ambitious Expansion Plans
With the fresh capital from the Series C round, Finom aims to accelerate its expansion into additional European Union markets. The company is committed to deeper localization efforts and scaling customer acquisition, with the goal of achieving full Eurozone coverage by the end of 2025. This strategic growth plan is underpinned by a focus on sustainable unit economics and high customer satisfaction.
Despite a challenging macroeconomic environment, Finom doubled its revenue in 2024 and anticipates maintaining this growth trajectory in 2025. The company’s ability to adapt its unified platform infrastructure while catering to the unique characteristics of each country it serves has been a key factor in its success.
Competitive Landscape and Future Outlook
In the competitive European fintech sector, Finom distinguishes itself through a strong localization strategy and a comprehensive product suite tailored to the needs of SMBs. While other challenger banks like Qonto have secured larger funding rounds, Finom’s efficient use of capital and innovative funding structures have enabled rapid growth without significant equity dilution.
Looking ahead, Finom’s focus remains on empowering European entrepreneurs by providing seamless financial solutions that integrate banking, invoicing, and accounting services. The company’s commitment to leveraging technology, such as AI-driven tools, positions it well to meet the evolving needs of SMBs and maintain a competitive edge in the fintech landscape.
