Finom, an Amsterdam-based financial platform for small and medium-sized businesses (SMBs) in Europe, announced a €115 million Series C funding round led by AVP (formerly AXA Venture Partners). The company provides a combined banking, invoicing, and accounting platform, incorporating AI-enabled features. The global SMB market is substantial, with Europe alone having 26 million such businesses. Finom aims to reach one million business customers by the end of 2026.
Finom operates with an electronic money institution (EMI) license in several European markets, including the Netherlands, France, Italy, and Spain. The company has expanded its product offerings to include lending in the Netherlands, viewing this as a testing ground for future credit products.
This funding, combined with a prior Series B round, would have been sufficient for profitability, according to the company's chairman and co-founder. However, Finom sought additional equity funding to achieve a higher valuation. The new valuation is double that of its Series B round.
The company's current focus is on major European markets where it perceives less competition from challenger banks and believes traditional banks are underperforming in serving SMBs.
Key competitors include Qonto, a French fintech offering similar services, and other established neobanks like Revolut and Monzo, which also cater to business customers, albeit often with a broader range of services and significantly larger funding rounds.
Finom employs approximately 500 people and plans to make strategic hires, focusing on AI agents to automate internal tasks.
Participating investors included Headline (formerly e.ventures), Cogito Capital, General Catalyst, and Northzone. This Series C brings Finom's total funding to approximately $346 million. A previous, non-equity funding round of $105 million from General Catalyst's Customer Value Fund was secured weeks prior.
