- Dutch neobank bunq raised an additional $49.3 million (€44.5 million) in growth capital.
- The investment takes the firm’s total capital raised this year to $111 million (€100 million). bunq’s valuation stands at $1.8 billion (€1.65 billion).
- Founded in 2012, bunq has nine million customers and $5 billion (€4.5 billion) in customer deposits
Netherlands-based bunq, the second-largest neobank in the European Union, has earned a valuation of $1.8 billion (€1.65 billion). The new valuation comes as the firm locked in an additional $49.3 million (€44.5 million) in growth capital. Current investors Pollen Street Capital, bunq Chief Information Officer Raymond Kasiman, and bunq founder and CEO Ali Niknam participated in the round. bunq has secured a total of $111 million (€100 million) funding this year alone.
“It’s been a truly magical year for bunq; we’re rapidly expanding and have seen massive deposit growth,” Niknam said. “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.”
bunq was founded in 2012, and offers banking, savings, payments, cards, and other financial services. The neobank specializes in serving “digital nomads”: individuals who live and work in more than one country. This strategy has helped bunq reach nine million customers and $5 billion (€4.5 billion) in customer deposits. Compare this with 5.4 million customers and €1 billion in customer deposits just two years ago. bunq primarily serves banking customers in Europe. Nevertheless, the company has begun the process of securing a banking license in the U.S.
In 2021, bunq received an investment of $213 million (€193 million). At the time, the fundraising was the largest Series A round raised by a European fintech. In the final quarter of 2022, bunq announced its first net profit. The company expects to achieve a full year of profitability this year.
“I’m incredibly proud that, just a decade since our inception, bunq’s service-oriented business model has proven to be profitable,” Niknam said in February. “Truly aligning our user-centered philosophy with financial success, we were able to build a business that’s only successful as long as our users are happy.”
bunq also announced a set of new enhancements this month. The company now gives customers up to 2% back on card spending on public transportation. Cardholders can also take advantage of 1% cashback for purchases at restaurants and bars. Bunq now enables users to save in multiple currencies, with interest paid out weekly. And with climate change top of mind for many of its customers, bunq has added carbon footprint tracking.
Check out our conversation with bunq Chief of Staff to the CEO Bianca Zwart from earlier this year at FinovateEurope. Zwart explained the company’s origins and its unique business model. She also discussed bunq’s goal of becoming the “global neobank for digital nomads and international people and businesses.”