European neobank Finom has secured €115 million in Series C equity funding, solidifying its position as one of the fastest-growing fintech startups in the region. The Amsterdam-based startup, which serves small and medium-sized businesses (SMBs) across Europe, says the fresh capital brings its total raised to roughly $346 million—and gives a strong signal that investor appetite remains high for well-positioned startups, even in a tighter funding climate.
The latest round, equivalent to around $133 million, comes just weeks after Finom landed $105 million in non-dilutive growth capital from long-time backer General Catalyst through its Customer Value Fund (CVF). What makes this structure unique is that General Catalyst didn’t take equity in return. Instead, the CVF funding is earmarked strictly for growth efforts like marketing, with a direct path to ROI. According to Finom’s chairman and co-founder Kos Stiskin, that injection alone could have been enough to reach profitability.
But the company wasn’t planning on closing both rounds so close together. “One took longer than expected, and one was much faster,” said Stiskin, who declined to disclose Finom’s updated valuation, only noting that it has doubled since its $54 million Series B earlier in 2024.
Backed by Top Investors, Finom Aims for 1M Customers by 2026
The Series C was led by AVP (formerly AXA Venture Partners), with participation from new investor Headline Growth (formerly e.ventures), alongside returning investors Cogito Capital, Northzone, and General Catalyst. Their continued support reflects a shared belief in Finom’s ability to capture a significant share of Europe’s 26 million SMBs. Finom’s current user base sits at 125,000, and CEO Andrew Petrov says the company’s goal of reaching 1 million customers by 2026 is aspirational but within reach.
Finom’s value proposition lies in its all-in-one financial platform for European entrepreneurs. It combines banking, invoicing, deposits, lending, and AI-powered accounting tools that eliminate the need for traditional bookkeeping. “Theoretically, entrepreneurs don’t need to have an accountant at all,” Petrov explains.
Unlike many of its better-funded fintech rivals like Revolut, Monzo, Wise, or N26, which have each raised over $1 billion, Finom has grown with comparatively lean capital. Its closest peer may be French unicorn Qonto, which has raised around $700 million, though the two differ in strategy and market focus.
Expanding Across Europe, With AI at the Core
While Finom originally eyed U.K. expansion through its 2022 acquisition of Kapaga, a cross-border payments firm, the company has since pivoted toward larger continental markets like France, Germany, Italy, Spain, and the Netherlands. It currently operates with an electronic money institution (EMI) license, after ending its partnership with Solaris earlier this year. Still, it was able to launch a lending pilot in the Netherlands, a key step in building out its credit product suite.
Finom’s product vision is to scale horizontally, offering core services like lending and deposits, and vertically, helping businesses manage everything from taxes to financial reporting—powered increasingly by AI agents. This AI strategy also extends internally: while the company expects to grow its 500-person team, Petrov says Finom is increasingly automating routine tasks with AI instead of traditional hiring. “We are hiring less than we need, and seeing better output,” he notes.
Leadership at Finom has also evolved. Petrov now serves as the sole CEO, while co-founders Yakov Novikov and Oleg Laguta have transitioned into advisory roles. Along with Stiskin, the founding team previously launched Russia’s Modulbank, but Finom’s focus remains squarely on European SMBs, which Stiskin calls “the backbone of the EU economy.”
While the Series C will fuel customer acquisition, it also gives Finom room to explore strategic acquisitions that could expand its product offering or customer reach—a significant shift from its historically cautious M&A approach.
With this latest funding milestone, Finom positions itself not just as another neobank, but as a serious contender to reshape how European businesses manage their finances—smarter, leaner, and powered by AI.
