A new funding round for the Stockholm-based FinTech Tink boosted the startup’s valuation over 60 percent to €680 million ($825 million), according to a CNBC report on Friday (Dec. 11), citing sources.
The new funding round of €85 million was co-led by French private equity firm Eurazeo and Dawn Capital. Also backed by PayPal, BNP Paribas and ABN Amro, the new funding follows a January round of €90 million, the sources told CNBC.
The firm’s valuation is up more than 60 percent from the €415 million it was worth in January, the sources said. The European open banking platform aggregates data from thousands of banks to give developers the ability to build new financial products for financial institutions (FIs) and FinTechs.
“Despite the difficulties this year, it’s been a year with fantastic progress with Tink and, I think, fantastic progress on open banking in general,” Daniel Kjellén, co-founder and chief executive officer of Tink, told CNBC.
“We continued to grow heavily organically, but also for the first time we’ve been doing M&A across Europe to complement our platform,” he added.
Tech-friendly banking regulations in the U.K. and the European Union — Payments Services Directive 2 (PSD2) — mandate that FIs allow third-party firms to access banking data with customers’ consent.
The company is planning to use the new infusion of capital to expand its payments capabilities, Kjellén said, adding that that’s where Tink will “probably see the strongest growth right now.” The startup processes 1 million transactions every month.
Tink also plans to use the new funds to expand staff from its roster of 365 employees, up from 150 in 2019. Annual recurring revenue is about €30 million, Kjellén told CNBC.
In June, PayPal increased its stake in Tink from its 2019 investment of $11.2 million. Founded in 2012 in Stockholm by Kjellén and Fredrik Hedberg, Tink said it connects to more than 2,500 banks to serve 14 European markets that reach over 250 million customers.