bunq on its €193m growth equity financing
Torch Partners acted as exclusive strategic and financial adviser to bunq, leading European digital challenger bank, on the €193 million growth equity financing led by Pollen Street Capital, valuing bunq at €1.6 billion, and the acquisition of Capitalflow, specialist SME lender. Pollen Street Capital and Ali Niknam, founder and CEO of bunq, joined the largest series A round ever secured by a European fintech.
The investment round marks a new phase in bunq’s growth journey, with bunq reaching profitability and continuing its growth momentum, with user deposits surpassing €1 billion and doubling for a third year in a row. Founded in 2012 by Ali Niknam and based in Amsterdam, bunq is a leading European digital bank with a full EU banking license, focusing on digital premium consumer and SME customers across 30 European countries. bunq’s mission is to radically change the traditional banking industry by delivering the best banking experience whilst increasing transparency and removing ‘hidden fees’ through a tailored subscription model.
Capitalflow is a Dublin-based specialist SME lender founded in 2016 with the backing of Pollen Street Capital. It has advanced over €650 million in facilities since formation and is the fastest growing alternative lender in Ireland, offering commercial real estate financing, asset finance and invoice discounting solutions. The acquisition of Capitalflow will accelerate bunq’s path to becoming the leading digital bank in Europe. It will bring together bunq’s rapidly growing consumer and SME franchise, technology, regulatory position and balance sheet with Capitalflow’s lending capabilities.
Pollen Street Capital is an independent alternative investment management company, focused on accelerating the progress of the financial and business services sectors. Pollen Street Capital has built market leaders in the high growth lending, insurance, wealth management and payments sectors and will support bunq in its next phase of growth. Pollen Street Capital was established in 2013 and operates across private equity and credit strategies on behalf of investors including leading pension funds, asset managers, banks, and family offices from around the world. Pollen Street Capital has a team of 75+ professionals with offices in London and New York.
The transaction is subject to regulatory approval by the Dutch Central Bank.
Torch Partners acted as strategic and financial advisor to bunq, demonstrating Torch Partners’ expertise and track record in advising leading fintech companies on growth equity financing and M&A transactions.
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