Europe’s largest neobank bunq secures additional growth capital, bringing the total yearly investments to nearly €100M

Dutch neobank bunq has raised €44.5M in growth capital from Ali Niknam (its founder and CEO), Pollen Street Capital and Raymond Kasiman. The fresh funding will fuel further acceleration of the bank’s international expansion.

Although the exact details of the fintech’s future plans are unknown, Niknam earlier mentioned he considers the U.S. market as a good opportunity. The idea is “bringing the bank of The Free to the land of The Free.” This April, bunq started the process of getting a banking license with FDIC.

The addition of new capital brings the amount of total yearly fundraising to nearly €100M. That is a record number for the European fintech company, considering the year is far from over. Moreover, current investors committed to an investment valuation of €1.65 billion, despite the general 2023 market downturn.

Record funding perfectly aligns with bunq’s phenomenal growth seen this year. In 2023, the challenger hit 9 million users across Europe and doubled its user deposits to over €4.5 billion. To compare, in 2022, bunq had a customer base of only 5.4 million people across 30 markets.

Two years ago, bunq raised €193M, registering the largest series-A ever raised by a European fintech, and reaching a valuation of €1.65 billion for the first time.

Investors’ trust was inspired by bunq’s recent financial results. The neobank reported its first net profit in the last quarter of 2022 and now expects to have its first full year of profit in 2023.