For a long time, it was quiet around Finleap Connect – but now the ambitious Berlin-based B2B fintech company is putting an exclamation mark on it: According to exclusive information from Finanz-Szene.de and Finance Forward, the open banking specialist, which emerged from the merger of Figo and Finreach in 2019, has raised a very tidy $26 million (€22 million) from investors. This is the third-highest funding for a German B2B fintech this year, well behind Mambu $130.7 million (€110 million), just behind Elinvar $29.7 million (€25 million).
Almost more important than the sum: Since the merger, Finleap Connect had been financed entirely by the parent company Finleap. Now, however, outside investors are taking a stake in the company again for the first time, namely Softbank offshoot SBI Investments and emerging VC Ilavska Vuillermoz Capital. If things had been different, the impression could have arisen at some point that Finleap Connect was primarily an appendage of Finleap and did not arouse sufficient imagination among other investors. The Berlin-based company no longer has to face this suspicion.
According to official information, the valuation is in the “triple-digit million range” – whereby one should plausibly assume a valuation somewhere between $119 million (€100 million) and $178 million (€150 million). If the investors were to value the company significantly higher, then under normal circumstances the funding would also have been more extensive. Nevertheless, if one leaves out the core banking specialist Mambu, which became a unicorn at the beginning of the year, and Solarisbank, which was last valued at around $380 million (€320 million), then Finleap Connect is now one of the most highly valued pure B2B fintech companies thanks to the financing round.
Otherwise, only API specialist Fintecsystems (recently sold for presumably around $143 million (€120 million)), Elinvar (presumably valued in the high double-digit millions at the most recent funding) and KYC specialists IDnow and WebID are likely to be in a roughly comparable league.
Read more about Finleap Connect and its latest financing round and be the first to find the most important business headlines with the Born2Invest mobile app.
This is how much revenue (and loss) Finleap Connect makes
Finleap Connect employs a good 150 people, claims to have more than 350 customers, and describes itself as a “full stack” platform for open banking services. The core of its product line is derived from the old Figo (an API specialist) and the old Finreach (at its core, an account switching specialist) – i.e., those two companies that merged to form Finleap Connect.
Unlike other B2B fintech companies in Germany, Finleap Connect had ventured into other European countries early on. Specifically, the Berlin-based company is active in France, Italy and Spain, each with its own general managers. However, according to the 2019 annual report recently published in the Federal Gazette, 91% of commission income still came from the domestic market at the time.
All told, revenue in fiscal 2019 totaled €4.9 million (by comparison, Fintecsystems came in at $3.8 million (€3.2 million) in the same year, albeit with a smaller product range and fewer employees, and API specialist Finapi, which belongs to Schufa, came in at $4.5 million (€3.8 million). For 2020, Finleap Connect expected “significantly increased revenue growth” according to its 2019 financial statements; however, it reportedly has not yet reached earnings in the double-digit millions. The net loss for 2019 was $9.6 million (€8.1 million) and is unlikely to have been much lower in 2020, at least; against this backdrop, too, the $26 million (€22 million) now raised is likely to come in handy.
Finleap Connect intends to use the fresh funds to drive international expansion and broaden its product range. The most important competitor in the continental European markets is likely to be the significantly more highly financed Swedes from Tink (the company that recently acquired Fintecsystems); other well-known non-German competitors are Plaid, Yapily and Truelayer. The latter, however, are more strongly anchored in the payment sector, while Finleap Connect focuses more on bank-related “value-added services”. In other words, on topics such as credit scoring, account switching, KYC, and so on.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in finanz-szene.de, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
What Is the Role of Fintech Companies in the Payments Ecosystem
The CEO of BIT2ME referred to the future of fintech as "good". However, he stated, "We live in a society...
UN Report Calls on Member States to Stop Criminalizing Drug Users
The report shows that a growing number of countries in all regions are adopting policies and practices that decriminalize drug...
Markets Heated Up This Past Week as Guidance from the Fed Was Bearish
The Fed left rates unchanged at this past week's meeting as expected but the guidance was hawkish. Markets didn't like...
Current Woes in Bonds Promise Future Grief for Stocks: Focus on Dow Jones
If you’re bullish, maybe you should lower your expectations of what the stock market can do for you in the...
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [uMobix Affiliate Program Review]
This week, we're covering everything from hustle culture to spying on kids, making this affiliate digest look like it has...
Business2 weeks ago
Argentinian Grilling Had One Big Problem… Then Kankay Came Along
Business4 days ago
Use This AI-Powered Money Saving App to Boost Your Finances
Crowdfunding2 weeks ago
Real Estate Crowdfunding Has Raised Over €45 Billion Worldwide
Markets4 hours ago
Markets Heated Up This Past Week as Guidance from the Fed Was Bearish