ID Finance, a Spain-based FinTech offering retail banking and finance solutions, has raised €30m in funding.
The round was led by a leading UK-based asset manager, Kingsway Capital.
The transaction has been officially endorsed by the Spanish Council of Ministers, after obtaining a favourable review from the External Investment Board. ID finance said it is the biggest investment inflow into a Spanish FinTech so far in 2023.
The transaction includes both a primary capital infusion and a buyout of shares from the company’s early investors. The capital injection is structured as a convertible loan with a maximum valuation of €235m.
ID Finance’s main offering is focused on providing retail banking and finance solutions. The FinTech also prides itself as being among the few financial technology firms in Spain and Mexico committed to measuring and compensating its carbon footprint.
The capital will be invested into the organic growth of the business with a focus on the roll out of Plazo, the company’s flagship financial wellness app, both in Spain and Mexico. Given the strategic importance of the initiative, co-founder Boris Batine will assume the role of CEO of Plazo.
Boris Batine, co-founder of ID Finance, said, “I’m very happy to welcome Kingsway, as our strategic partner. Having a new institutional investor on board opens a new horizon to ID Finance. I believe this is the beginning of a new chapter for the company, and we are very excited about the prospects of the Group”.
Tamir Saeed, managing partner at Kingsway Capital, added, “We are excited to partner with ID Finance and support their mission to provide access to financial services to underserved consumers in Developed and Emerging Markets. ID Finance has a proven track record of using technology and data analytics to create innovative financial products, and we believe they are well-positioned to capture significant market share and drive financial inclusion across Europe and Latin America.”
Earlier this year, FinTech Global Research reported that Spanish FinTech deal activity in 2022 dropped to the lowest levels in five years
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