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5 prominent FinTech funding rounds of 2021 in Europe

By Joy Dumasia

November 30, 2021

  • 2021
  • Digital Transformation
  • Europe

FinTech refers to software and other modern technologies used by businesses that provide automated and improved financial services. FinTech in our daily life is Mobile Payment apps, Cryptocurrency and Blockchain like Bitcoin and Gemini. In the future, the range of FinTech services is predicted to transform the market even more with A.I. and machine learning and will make FinTech products an integral part of our digitalized life.

FinTech refers to the synergy between finance and technology, which enhances business operations and delivers financial services. FinTech can take the form of software, a service, or a business that provides technologically advanced ways to make financial processes more efficient by disrupting traditional methods.

Studies have shown that the COVID-19 pandemic has adversely affected the FinTech ecosystem. The number of FinTech deals has taken a hit as investors choose mature companies over early-stage deals to put their money in. 

The following are 5 prominent FinTech funding rounds of 2021 in Europe:

Trade Republic raised $900 million in a Series C round of funding that values the Berlin startup at $5.3 billion. The round was led by Sequoia, with new backers TCV and Thrive Capital and previous backers Accel, Founders Fund, Creandum and Project A also participating.

The company will use the funds from this round to help set up millions of Europeans for wealth creation with secure, easy, and free access to capital markets, thus opening up financial markets to help close the massive pension gap.

Established in 2015, the company allows its customers to invest in stocks, ETFs and derivatives. It is licenced in Germany, supervised by the Bundesbank and BaFin and counts HSBC, BlackRock, and solarisBank as partners.

SumUp has raised €750 million in debt financing as it looks to accelerate its growth through acquisitions and expansion of its global reach and product suite. The investment facility comes from returning investors Goldman Sachs and Bain Capital Credit, alongside Temasek and Crestline. The round was oversubscribed, and Oaktree Capital Management manages funds.

SumUp plans on using the proceeds to acquire and support its existing merchants in 33 markets across the world and continue expanding the product suite, both organically and through further M&A activity, as well as refinancing existing debt facilities.

IBS Intelligence recently reported that SumUp had announced its decision to join 1% for the Planet and commit 1% of future net revenues to environmental causes such as ​​preventing deforestation, building renewable energy infrastructure, practising regenerative organic agriculture, conserving water, diverting waste, and creating more sustainable materials.

Mollie, a payment service provider in Europe, has announced the closing of US$800m (665 mn Euro) in a Series C funding round led by funds managed by Blackstone Growth (BXG), Blackstone’s growth equity investing business. The round values Mollie at US$6.5bn (5.4 bn Euro).

TCV, who led the Series B investment in September 2020. The investment brings the total amount raised by the company to over US$940m (780 mn Euro). The finance round also saw participation from EQT Growth, General Atlantic, HMI Capital and Alkeon Capital.

IBS Intelligence reported that Mollie, the payment service provider in Europe, announced opening a development hub in Lisbon, Portugal. The office will be home to over 100 employees by 2023 and is part of its plans to dramatically increase its product development velocity.

wefox, a Berlin, Germany-based digital insurance company, raised US$650m in Series C funding, resulting in a post-money valuation of US$3 billion. Target Global led the round with participation from existing investors OMERS Ventures, Gsquared, Merian, Horizons Ventures, Eurazeo, Mubadala, Creditease, Salesforce Ventures, Speedinvest, Alma Mundi Ventures, Victory Park Capital, GR Capital, Mountain Partners, Seedcamp, and Sound Ventures and new investors LGT, Partners Group, Jupiter, and FinTLV.

The company intends to use the funds to expand into the U.S. and Asia within the next two years while strengthening its presence in its existing markets in Germany, Austria, Switzerland, and Poland.

Klarna announced a new equity funding of $639 million led by SoftBank’s Vision Fund 2, with additional participation from existing investors Adit Ventures, Honeycomb Asset Management and WestCap Group. The funding round brings the post-money valuation of Klarna to $45.6 billion and is expected to support international expansion and further capture global retail growth.

Klarna’s other investors include Sequoia Capital, SilverLake, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group, Ant Group, Northzone, GIC – Singapore’s sovereign wealth fund as funds and accounts managed by BlackRock and HMI.

Recently, IBS Intelligence reported that Klarna, a leading global retail bank, payments and shopping service with 90 million users globally, officially launched in Portugal, empowering Portuguese consumers with a better shopping experience and greater control, transparency and choice over how they shop, pay and bank.

ALSO READ: Cool FinTech Report 2021

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