It has been a busy year for Europe’s fintech scene. Since the start of 2019 several new fintech unicorns have been born, while Europe’s fintech companies together raised almost €7bn in funding, according to Dealroom data.
The latest dramatic news from the sector is that Revolut is gearing up to raise a massive $1.5bn, and is seeking a valuation of somewhere between $5bn and $10bn.
But how would this stack up against Europe’s other fintech raises this year? We compiled a list of the biggest raises in 2019 using Dealroom data so that you can compare.
As you might expect, Revolut will snag the top spot if its plans come through.
1) Greensill raised $800m
This massive $800m investment from Softbank's Vision Fund pushed Greensill’s valuation up to around £3bn. Founded eight years ago by Lex Greensill, Greensill is now one of the UK’s biggest fintechs. Interestingly, it counts David Cameron as an advisor, who reportedly helped it attract $250m in investment from General Atlantic in 2018. It specialises in supply-chain finance.
2) Klarna raised $460m
This raise pushed Klarna up to a valuation of $5.5bn, officially making it the highest-valued private fintech company in Europe. The startup, led by Sebastian Siemiatkowski, has captured the millennial market with its smooth user experience and features like its buy-now-pay-later button. It also has rapper Snoop Dogg as an investor. We recently talked to Siemiatkowski himself about his secrets to success.
3) OakNorth raised $440m
This funding round came from SoftBank’s Vision Fund alongside the Clermont Group. OakNorth stands out in the world of European fintech because, unlike most, it actually makes a profit. In fact, last year it managed to bring in £34m in profits, up 220% from the year before. Its business model is focussed on providing loans to fast-growing businesses.
4) N26 raised $300m in January, then an additional $170m in July
July's raise brought this Berlin-based fintech to valuation of around $3.5bn. N26 has built a name for itself with gutsy advertising campaigns (its slogan is “Banking. But without the bullshit”) and has done a good job of capturing the millennial market. It is now planning on taking on the US market.
5) Checkout.com raised $230m
This $230m Series A round went down in history as the largest ever first-round funding for a fintech company. Checkout.com is a seven-year-old startup facilitates online payments by acting as a middleman between merchants and payment companies like PayPal and Mastercard.
6) WorldRemit raised $175m
WorldRemit is a London-based mobile payments company that helps facilitate quick international transfers by migrant workers. According to TechCrunch, a “well-placed source” said that the raise brought its valuation to over $900m.
7) Monzo raised $113m
Monzo's raise this June pushed the four-year-old startup’s value to around £2bn. Monzo is another challenger bank that has been a hit with the millennial market. It’s popularity, however, has not yet been transformed into profits. It has also found itself in hot water this year after a security flaw was discovered in its internal system.
8) Starling Bank raised £75m and then won a £100m grant
Founded in 2014, Starling is a similar age to Monzo. It has fewer customers but scores well on other metrics, such as the amount that customers deposit in its account (£1,450 a month on average). The challenger raised a £75m Series C in February and days later announced it had won a hefty grant from RBS as part of a scheme designed to boost competition in the small business banking sector. Starling's chief executive Anne Boden said the money would be used to create 400 new jobs in the UK.
9) TradePlus24 raised $120m in equity and debt.
TradePlus24 is another challenger lender attracting funds from big investors, including Credit Suisse. Its business model is focussed on providing low-cost credit to small and medium-sized businesses. The company recently announced that it is expanding abroad, starting with Australia.
10) Atom Bank raised £50m
Mobile-only Atom Bank raised £50m in a fundraising round with participation from BBVA, Toscafund, Woodford Patient Capital Trust and funds advised by Perscitus LLP.
The company said that the cash injection will be used to continue the bank's investment in technology. In 2018, Atom announced that it would be partnering with a fintech startup called Thought Machine to migrate all of its banking technology to a platform called Vault.
