Finom, an Amsterdam fintech firm, has raised €115 million (US$133 million) in a series C equity funding round. The round was led by AVP, with participation from new investor Headline and existing backers Cogito Capital, General Catalyst, and Northzone.

This funding increases Finom’s total capital raised to around US$346 million.

Finom, which targets small and medium-sized businesses (SMBs) in Europe, plans to use the funds for customer acquisition, product expansion, and strategic acquisitions.

The announcement follows the company’s earlier acquisition of US$105 million in growth funding from General Catalyst, which was secured under a non-traditional funding model that did not involve equity exchange.

With a user base of 125,000, Finom operates in the Netherlands, France, Italy, and Spain under an electronic money institution (EMI) license.

The company continues to focus on leveraging AI to enhance its product capabilities and internal operations while maintaining a lean hiring strategy.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Thriving against the fintech funding winter

Finom’s significant funding rounds stand in stark contrast to the broader fintech funding landscape.

Global fintech funding has plummeted from a peak of $141 billion in 2021 to just $33.7 billion in 2024, representing a 76% decline over three years 1.

This funding winter has been especially harsh in 2024, with fintech deals dropping by 17% to 3,580 transactions and total funding decreasing by 20% compared to the previous year 1.

The company’s ability to secure €115 million in equity plus $105 million in growth funding reflects a critical market reality: B2B fintech models targeting SMBs have demonstrated greater resilience than consumer-focused alternatives during this downturn.

This pattern aligns with broader industry observations showing B2B fintech segments, particularly those offering services to businesses rather than consumers, maintaining stronger investor interest during funding contractions 2.

2️⃣ Alternative funding structures gain traction in European fintech

Finom’s unique financing approach, combining traditional equity with General Catalyst’s non-dilutive growth capital, represents an emerging trend in fintech funding.