Finom, a digital bank based in Amsterdam catering to small and medium-sized enterprises (SMEs), has successfully secured €92.7 million (around $105 million) from General Catalyst’s Customer Value Fund. This investment is intended solely for growth initiatives rather than covering operational costs or product development. Kos Stiskin, Finom’s co-founder and chairman, emphasised that this funding approach is atypical, as General Catalyst is not acquiring any equity in the process.
Stiskin noted that Finom’s core operations are already generating positive cash flow, enabling the company to use the new capital exclusively to attract more clients. The bank has diversified its offerings beyond standard digital banking; in February, it launched an “autonomous AI accounting agent” aimed at solo entrepreneurs and freelancers. Additionally, it recently ventured into direct lending, which is backed by an AI-infused scoring system, and plans to roll out its credit products throughout Europe by the end of the year.
Since its establishment in 2020, Finom has gained over 100,000 business clients across countries including Germany, France, Spain, the Netherlands, and Italy, achieving positive unit economics in all these markets. The bank utilises a subscription-based revenue model, supplemented by transaction fees and a cashback program. Its recent expansion into lending has also introduced a new income stream through interest on credit lines.
Although specific revenue figures remain undisclosed, Stiskin shared that Finom doubled its annual recurring revenue in 2024 and is currently EBITDAM profitable. Finom’s main competitor, Paris-based Qonto, raised €486 million in early 2022, but Stiskin claims that Finom’s stronger localisation strategy and broader range of products provides it with a competitive edge.
The company has seen notable growth in its team, expanding by over 31% to a headcount of 505 employees. Last September, Finom appointed Alessandro Camilotti, formerly of Klarna, as its CFO. Overall, since inception, the bank has attracted nearly €190 million in funding, with a recent €50 million Series B round co-led by General Catalyst and Northzone.
While the valuation of Finom has not been publicly disclosed, it was reportedly valued at $150.7 million post-money in November 2021 following an earlier €30 million seed funding round. Zeynep Yavuz, a General Catalyst partner, expressed confidence in Finom’s execution in a market that remains underdeveloped. She highlighted the scalability of its modular infrastructure and its proprietary anti-money laundering and know-your-customer system as key advantages both for compliance and enhancing customer experience.
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