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Solaris raises €96 million in funding

Solaris raises €96 million in funding

German Banking-as-a-Service outfit Solaris has raised €96 million in a Series F funding round and secured a financial guarentee of up to €100 million capital equivalent which will enable it to execute on a major credit card contract with Munich-based motor association Adac.

Solaris in 2022 won a 10-year contract to issue Adac-branded credit cards to the club’s 21mn members. The company expected the contract to boost annual sales by more than €100mn, from last year’s revenue of €130mn.

Solaris reported a €56 million loss for fiscal year 2022. The company last raised €38 million in July last year in its first round of Series F funding, but needed to raise an additional €100 million in funding as part of an upfront payment to Adac and to meet regulatory capital requrements for taking on the motor association's €500 million loan book.

Carsten Höltkemeyer, CEO of Solaris, says: "This is a significant milestone for Solaris on our path to sustainable, profitable growth. The funding underlines the high level of confidence our investors have in the transformation of our company. 2024 heralds a bright new chapter for Solaris and we are committed to delivering on our business priorities, enhancing the product offering for our partners and making regulatory compliance our USP."

The funding round was led by SBI Group, one of Solaris' early strategic investors, and will enable the delivery of the Adac migration, he says.

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