French challenger bank Qonto has landed $552m in Series D funding, propelling it to a $5bn valuation, a report by Finextra has revealed.
The round was led by new investors Tiger Global and TCV, joining current backers Valar, Alven, DST Global and Tencent.
The company has positioned itself as a challenger bank for small and medium-sized businesses (SME) and freelancers, offering a “one-stop shop” for everyday banking and financing, to bookkeeping and spending management.
Founded in 2017 by Steve Anavi and Alexandre Prot, Qonto serves more than 220,000 clients in four countries – France, Germany, Italy and Spain – and employs more than 500 staff in Paris, Berlin, Milan and Barcelona.
The company says the new funding will be deployed to explore acquisition opportunities, reinforce growth in existing markets while expanding further across Europe, and quadruple its team to more than 2,000 by 2025.
The French challenger bank closed its Series C round on $115m early last year. The round was led by China’s Tencent and venture capital investor DST Global.
Alexandre Prot, co-founder and CEO of Qonto, said: “This new Series D funding round is an amazing opportunity for us to accelerate our hyper-growth trajectory by investing in our product, our customer service and our power to attract new talents.”
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