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bunq secures $111m in growth capital with fresh $49m boost

By Gloria Methri

July 25, 2023

  • Ali Niknam
  • bunq
  • Challenger Bank
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bunq, FinTech, Neobank, Ali Niknam, Pollen Street Capital, Raymond Kasiman, FinTech Fundraise, Challenger Bank, Netherlands, EuropeEuropean neobank bunq has closed an additional €44.5 million (about $49m) in growth capital, bringing its total capital raised this year to nearly €100 million (about $111m). This fresh capital allows the mobile bank to further accelerate its international expansion and continue its rapid growth.

Current investors Ali Niknam, Pollen Street Capital, and Raymond Kasiman joined the round and committed to an investment valuation of €1.65 billion, despite this year’s market downturn.

“It has been a truly magical year for bunq: we are rapidly expanding and have seen massive deposit growth. With more and more people entrusting their money to us, we’re convinced that we should double down on our momentum and cement the way forward for future growth,” said Ali Niknam, founder and CEO of bunq.

The funding round follows a record year for the company. The challenger recently hit 9 million users across Europe and doubled its user deposits in just four months, with deposits surpassing €4.5 billion. In 2021 bunq raised €193 million, the largest series-A ever raised by a European FinTech, valuing bunq at €1.65 billion.

bunq booked its first net profit in the last quarter of 2022 and expects to have its first full year of profit in 2023.

In February, bunq said it recorded its first quarterly profit as its net fee income grew by 37%  to the last quarter of 2021, and user deposits grew by 64%, to €1.8 billion at the end of 2022.

The company has also been adding partnerships and announcing expansion plans. Earlier this month, bunq added cashback (up to 2%) and savings interest in multiple currencies to its offerings. It offers 1% cash back on food and drinks to Easy Money and Easy Green users, and 2% back on public transportation to Easy Green users.

In April, the neobank applied for a New York banking license with the Federal Deposit Insurance Corporation (FDIC) to bring its solutions to the United States.

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