• European business finance solution company Qonto is seeking to acquire its competitor Penta.
• Together, the two will serve more than 300,000 small business customers across Germany, France, Italy, and Spain.
• Terms of the deal have not been disclosed.

Two European business finance solution companies have agreed to join forces. In the deal, which is expected to close in the next few weeks, Paris-based Qonto is seeking to purchase Berlin-based Penta. Financial terms have not been disclosed.

“When Steve Anavi and I founded Qonto in 2016, we had the ambitious goal of simplifying everyday banking for SMEs and freelancers across Europe,” said Qonto CEO Alexandre Prot. “Today, we’re already present in four European markets and, while I’m very proud of what we’ve achieved so far, we want to go even further: the natural next step was to join forces with Penta. We are thrilled to welcome the Penta team onboard. Together we’re going to be the finance solution of choice for one million European SMEs and freelancers by 2025!”

Penta launched in 2017 and now serves 50,000 small business customers in Germany. Qonto launched the same year and currently serves more than 250,000 clients across France, Germany, Italy, and Spain. The acquisition will combine Qonto’s brand strength, license, and core banking system with Penta’s local expertise.

Qonto is anticipating that Penta’s existing market presence will strengthen its operations in Germany. The combined entity will make Qonto a strong leader in the European digital business finance sector. After the acquisition is complete, the company will have more than 300,000 customers and 900 employees.

“With the combination of increasing customer numbers and rising revenues, we have gained even more substance in the past 18 months,” said Penta CEO Markus Pertlwieser. “We are very excited that we now have the chance to actively shape digital banking for business customers in Europe as a team with Qonto.”

Photo by MART PRODUCTION

• U.K.-based GoHenry has acquired France-based Pixpay for an undisclosed sum.
• The deal will help GoHenry expand further into Europe.
• GoHenry and Pixpay will operate under their own brands with no change in staffing or headquarters.

Kids money management app GoHenry has acquired France-based Pixpay for an undisclosed amount.

The move will help U.K.-based GoHenry expand further into Europe, taking advantage of Pixpay’s teen mobile banking operations in France, Spain, and eventually Germany and Italy.

“Pixpay is the most developed player in Europe,” said GoHenry CEO Alex Zivoder, “and we’re excited to combine our expertise in financial education to accelerate not only GoHenry’s growth but to accelerate the financial fitness of even more kids and teens globally.”

Founded in 2019, Pixpay’s mobile banking app targets a slightly older user base then GoHenry. Pixpay is aimed at pre-teens and teenagers, while GoHenry caters to kids as young as six years old. Both seek to not only help kids spend and save money, but also to teach them responsible money habits at an early age. With almost 200,000 users, Pixpay has raised €11.1 million. Benoit Grassin is co-founder and CEO.

“We are delighted to be joining the GoHenry Group as we prepare to accelerate Pixpay’s expansion across Europe,” said Grassin. “GoHenry’s experience and heritage will only serve to strengthen the already strong proposition offered by Pixpay.”

The acquisition will not impact current operations at either company. Both GoHenry and Pixpay will function under their own brands with no change in staffing or headquarters. The two plan to work together to improve their products and “further transform financial education across the globe.”

GoHenry launched in 2012 and has since raised $66.2 million. The company expanded into the U.S. in 2019 and now counts more than two million members across the U.S. and the U.K.

“So as we expand into Europe, we’re excited to empower even more young people with the money management skills they need to thrive in today’s digital economy,” the company said in its announcement.

• Digital financing platform Funding Societies agreed to acquire payments solutions company CardUp.
• The announcement comes four months after Funding Societies closed a $294 million Series C investment.
• Financial terms of the deal were not disclosed.

Digital financing platform Funding Societies has agreed to acquire payments solutions company CardUp for an undisclosed amount. The news comes four months after Funding Societies raised $294 million in Series C funding.

Singapore-based Funding Societies will leverage CardUp’s payments products to complement its own lending capabilities. The new tools will empower its SME clients to manage and pay expenses, receive payments, and borrow funds.

CardUp, which is also headquartered in Singapore, offers payment capabilities, such as card payments to non-card accepting recipients, online payments acceptance, invoice automation tools, and licenses and integrations with third-party software to help businesses make and collect payments. The no-code solutions make it easy for companies to improve cash flow management, unlock rewards on existing credit cards, and automate tasks. Since it launched in 2016, CardUp has served “tens of thousands” of business clients ranging from micro businesses to corporates.

CardUp will continue to operate its consumer and business services. The company’s employees across Asia will transition over to the Funding Societies team and CardUp CEO Nicki Ramsay will join Funding Societies’ management team to lead its payments business.

Funding Societies, which is licensed and registered in Singapore, Indonesia, Thailand, Malaysia, and operates in Vietnam, connects small businesses with financing while offering alternative investment opportunities for individual investors. The company offers a range of financing products, including micro loans, term loans, invoice financing, supply chain financing, revolving credit, and more. In 2021, Funding Societies connected small businesses with $1 billion in working capital. Funding Societies also supports businesses with a credit card that offers 5% cashback.

“Acquiring CardUp enables us to leapfrog and accelerate our market leadership in the regional fintech space, integrating payments capabilities, enhanced user experience, and local licenses to our digital lending experience across key markets,” said Funding Societies Co-founder and CEO Kelvin Teo. “We are excited to work with the CardUp team and are honored to join forces with them.”

Photo by Ilya Chunin on Unsplash

• Raisin Bank has agreed to acquire the payment division of Bankhaus August Lenz.
• The move will help Raisin Bank diversify its revenue sources by adding payment services to its product lineup.
• Terms of the deal were not disclosed.

Banking-as-a-service player Raisin Bank is adding cash and payment services to its product lineup. This comes as the Germany-based firm has acquired the payment division of Bankhaus August Lenz, a private bank headquartered in Munich. Financial terms of the agreement were not disclosed.

The move will help Raisin Bank diversify its revenue sources by adding payment services. The new capabilities enable Raisin Bank to offer customers electronic payment transactions and cash solutions. Bankhaus August Lenz’s Mirko Siepmann will head up the new division, which aims to help retailers, restaurant, gas stations, and non-bank operators of ATMs, facilitate the operation of more than 4,500 ATMs in Germany. 

“As a service bank, we will act much more independently and powerfully with the expansion of our payment solutions and continue our growth in the banking-as-a-service market throughout Europe advance,” said Raisin Bank Chief Commercial Officer Dr. Andreas Wolf. “With the new business area, we can position ourselves even better as a provider for bulk payments.”

Raisin Bank, previously MHB-Bank, was founded in 1973. The bank acquired European fintech Raisin in 2019 and has since been working toward its goal to become the leading banking-as-a-service provider in Europe. The bank offers digital solutions to help startups, institutional investors, and financial service providers seeking banking licenses to enhance customer and account management, payment transactions, and lending. Raisin Bank stated in today’s press release that adding payment services represents an “important strategic step on the way to becoming a powerful full-service provider.”

Photo by Anete Lusina