Northmill Bank to conduct $30 mn capital round for boosting expansion

By Megha Bhattacharya

Northmill Bank announced that it has carried out a capital round of SEK 250 million ($30 million approx) led by M2 Asset Management, a Swedish investment company controlled by Rutger Arnhult, and the institutional investor and asset management firm Coeli. The new funding is expected to be used for geographical expansion and to boost the development of new products.

Hikmet Ego, CEO and co-founder of Northmill Bank commented, “We are happy to welcome such competent and experienced owners to our growing neobank. Our fantastic employees, long-term perspective, proven business model and our strong belief in technology as a driver, have created the conditions now enabling us to accelerate further. Our investors share our view that the bank of the future will be built by being receptive and developing products that really help customers improve their personal finances.”

Recently, Northmill Bank announced that it has become a member of the Swedish Central Bank’s payment system- RIX. The payment system’s membership is expected to allow the neobank to add a range of new banking products and features to its banking offer, as well as adding extra layers of relevance and customisation.

Northmill Bank AB was founded in 2006 and acts under the supervision of Finansinspektionen, the Swedish Financial Supervisory Authority, and is subject to the Banking and Financing Business Act.

Rutger Arnhult, Chairman of the Board of M2 Assets Management AB commented, “Northmill Bank is already a profitable company with a proven and sustainable business model, which stands out among today’s tech investments. We have been following their journey for a while and have been impressed by the founders, as well as the company. The banking market is well on its way to change and the winners will be those who best can adapt to the new digital reality. For me, this is an investment in a tech company with long-term owners, who are just at the beginning of their journey. I see great growth potential in the bank.”