Tink, a Swedish open banking start-up, has landed another €85 million following a year full of overseas acquisitions.
Co-led by new Parisian investor Eurazeo Growth and existing backer Dawn Capital, the funding was an extension of the fintech’s €90 million round in January.
Other existing backers – PayPal Ventures, HMI Capital, Heartcore, ABN AMRO Ventures, Poste Italiane and BNP Paribas’ venture arm, Opera Tech Venture – all upped their investments in the fintech too.
The fresh capital has a two-fold purpose. One is to power on with its bullish European expansion. Whilst the other is to boost adoption of payment initiation (PI) across the continent.
A year of acquisitions
This year, Tink has made three European major acquisitions to broaden its application programme interface (API) coverage.
The transition saw OpenWrks bring more than 3,000 bank connections into Tink’s ecosystem. OpenWrks’ customers – such as Xero and Liberis Finance – store data which underpins Tink’s UK business account data service, which is still in development.
In July, Tink acquired Instantor, a credit decisioning solution provider, for an undisclosed amount.
The deal followed the completion of its €15.5 million acquisition of Madrid-based aggregator Eurobits in May.
Instantor works with 150 banks and fintechs across 13 European markets. Eurobits, founded in 2004, claims to serve customers across 11 markets. It handles more than 50 million account aggregation requests every month.
Headquartered in Stockholm, Tink has more than 350 employees based across 13 European offices.
Its customers include PayPal, NatWest, ABN AMRO, BNP Paribas, Nordea and SEB. The fintech also boasts an annual recurring revenue (ARR) of €30 million.
Progress with PI
As mentioned earlier, Tink isn’t just focused on expanding its presence geographically. It also wants to boost adoption of PI – deemed the second, and arguably far more disruptive, wave of open banking.
Tink says it processes “close to one million” payment transactions each month across five months. This is in addition to its data aggregation offering, which is used by far more of its customers.
Its major PI-enabled clients include digital mailbox provider Kivra, which serves just shy of four million Swedes. And Lydia, a payments app with five million customers in France.
Tink says it wants to take PI live in at least ten markets throughout 2021. This product expansion is particularly important in light of the disruption happening in the data-based open banking market.
But the same day, Nordigen – a Latvian fintech – unveiled a free open banking platform. Competition is heating up for players, putting pressure on alternative revenue streams.