Hawk Raises €52M to Fuel U.S. Expansion and Boost Growth

Munich-based software provider Hawk has raised fresh capital. The company is receiving €52 million from investors. The fintech company announced this on Tuesday morning.

“This financing round will enable us to expand further,” said Hawk CEO Tobias Schweiger, who founded the company together with Wolfgang Berner in 2018, in an interview with Handelsblatt. The fintech aims to grow strongly in the US in particular. “This will be our second core market alongside Europe,” Schweiger said.

Most recently, Hawk raised $17 million (approximately €15.5 million) in early 2023, increasing its valuation by 120 percent to €67 million. The company declined to comment on the current valuation, only stating that it had been “significantly increased.”

Hawk focuses on two customer groups

Hawk offers banks, fintech companies, and other financial service providers a proprietary software solution to combat money laundering. The company promises to detect suspicious transactions that other systems miss while reducing the false positive rate.

“We were able to increase the prediction accuracy to almost 90 percent in some cases while halving the number of false alarms,” said Schweiger.

Hawk focuses on two customer groups: traditional banks and fintech companies. “We’re currently seeing high demand from banks,” said the Hawk CEO. “But fintech companies will always be a part of it.”

Customers include the telecommunications company Vodafone and the payment service provider VR Payment, which is part of the cooperative DZ Bank. Hawk says it has a total of 80 customers.

The fresh capital will be used, among other things, to “more than double” the number of employees in the USA. Hawk currently employs a total of 130 people, twelve of whom are in the USA. The company is not profitable; according to the company, its current focus is still on growth.

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First published in Handelsblatt. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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