In a recent news amidst ongoing coronavirus outbreak, one of the B2B challenger banks has reportedly announced raising USD 7 million seed funding from leading investors Target Global and General Catalyst. Moreover, the seed funding round also included participation from FJ Labs, Frank Freund and Michael Stephan, Raisin founder Tamaz Georgadze, and the founder of MarketFinance- Kondrashov.
It has been reported that the company will primarily use this funding to develop its banking product, and to expand its presence in Italy, Germany, and France in summer on 2020.
Finom has enveloped accounting, banking functions, and financial management into one ‘mobile-first’ product for early-stage businesses and SMEs. Through this, the businesses can now set up an online account, with accounts payable and receivable from both the application and online site in fairly short order. According to various credible sources, the company was established by a team that launched Modulbank, ‘neobank’ for SMEs in Russia.
The co-founder of Finom, Konstantin Stiskin reportedly cited that the company aims to be a foundation for SME’s and their daily businesses enclosing accounting, financial management, and accounting within one product. He also added that Finom stands firm at its motive of enabling small businesses in Europe to become more effective and to flourish globally in every aspect. As per official sources, the company cited that EU SME banking market size accounts for over more than 100 billion euros while the European entrepreneurs spend about 74 per cent of their time on non-core activities and pay for inconvenient and expensive products.
On the other hand, Mike Lobanov, COO and General Partner at Target Global stated that the firm would stand behind Finom in its motive of supporting the SME segment. Further, he adds that Target Global has already built a new standard for offering financial services to the SMEs.
Finom is now live in the state of Italy, beginning with e-invoicing, allowing the company to gain market knowledge and collect data for payments/accounting and lending, Post the successful establishment in Italy, Finom would be made live in the nations of France and Germany.