Bunq has hit a €1.6 billion valuation on a €193 million Series A funding round that also sees the Dutch digital bank buy Irish lending firm Capitalflow Group.
Pollen Street Capital is contributing €168 million, with bunq founder Ali Niknam - who has funded the firm until now - putting in another €25 million. The arrangement sees bunq acquire Capitalflow Group from Pollen Street Capital.
Founded in 2012 by Niknam, bunq is now available in 30 European markets, with user deposits of €1 billion. The company, which operates a subscription-based model, says it recently hit profitability.
The new deal not only sees bunq take its first outside investment, it marks the beginning of an M&A strategy, taking on a company with ties in the Irish market and SME lending expertise.
Says Niknam: "Bunq was founded to challenge what banking is and can do. By putting our users first we have created a bank that is super focussed to make life easy in a sustainable way."