Regardless of the Wirecard fallout, German fintech startup solarisBank has raised a Sequence C funding spherical of $67.5 million (€60 million). Following as we speak’s funding spherical, solarisBank is now valued at $360 million (€320 million). solarisBank does not have any shopper product straight. As an alternative, it affords monetary providers to different fintech firms by way of a set of APIs.
With solarisBank, you possibly can construct a fintech startup and leverage solarisBank’s line of merchandise to do the heavy lifting. It’s an infrastructure firm within the banking area.
Whereas solarisBank may not be a well-recognized identify, a few of its purchasers have develop into fairly in style. They embrace challenger banks, similar to Tomorrow, Insha and a newcomer known as Vivid, enterprise banking startups, similar to Penta and Kontist, buying and selling app Trade Republic, cryptocurrency startups Bison and Bitwala, and so on.
Total, solarisBank works with 70 firms which have attracted 400,000 purchasers in complete.
HV Holtzbrinck Ventures is main the spherical with current investor yabeo committing a considerable follow-on funding. Different new traders embrace Vulcan Capital, Samsung Catalyst Fund and Storm Ventures. Present traders BBVA, SBI Group, ABN AMRO Ventures, International Mind, Hegus and Lakestar are investing once more.
The corporate began the fundraising course of again in December. As a result of financial prospects, it has been a blended course of. “A whole lot of traders checked out their portfolio firms and the urge for food to take a look at one thing new was not there,” solarisBank CEO Roland Folz informed me. However all the pieces labored out finally as round half of the funding comes from current traders.
“We initially have been in search of €40 million however we have been overwhelmed by the curiosity of traders despite Covid,” solarisBank Head of Technique and Shareholder Relations Layla Qassim informed me.
solarisBank’s imaginative and prescient could possibly be summed up in two phrases — regulation and modularity. The corporate is a completely licensed financial institution, which implies that its purchasers don’t have to use to a banking license themselves.
And the startup allows you to decide the modules that you simply need to use in your product. Possibly you’re constructing a cell cryptocurrency pockets and also you simply need to have the ability to give an IBAN and a debit card to your customers. Possibly you’re constructing a used automotive market like CarNext and also you need to provide credit score. Possibly you need to construct a challenger financial institution however deal with a particular vertical.
With solarisBank, you possibly can open financial institution accounts and problem cost playing cards connected to these accounts. You may as well problem playing cards and fix them to a unique account in case you’re integrating with current financial institution accounts. The startup additionally affords varied providers round funds, vouchers, cross-border transactions and extra.
Extra not too long ago, the corporate launched a brand new characteristic known as Splitpay with American Categorical. When clients try on an e-commerce platform in Germany, American Categorical clients will be capable to select a reimbursement plan to pay over a number of months.
solarisBank generates income from its purchasers as they pay to make use of the corporate’s APIs and allow accounts and playing cards. solarisBank additionally collects the interchange charges on card transactions and share income with its purchasers. Equally, solarisBank can provide to share income on credit score pursuits with its purchasers.
Sooner or later, solarisBank plans to make its portfolio of monetary providers much more compelling by introducing native IBANs in an important European markets. It ought to make it simpler to persuade potential purchasers outdoors of Germany to make use of solarisBank as their banking infrastructure.