European digital bank bunq, which recently declared a net profit of $57m in 2023, has reportedly raised $31m in new funding.
The fresh capital comes from the bank’s existing shareholders, according to a report from Finovate.
The $31m infusion is aimed at furthering bunq’s strategic development and ensuring compliance with the Dutch Central Bank’s capital requirements.
Primarily, bunq is in the business of revolutionising the banking experience with a strong emphasis on user-friendly digital interfaces and innovative financial services. The bank’s interest income has notably tripled in 2023, soaring from over €41m to more than €127m. This substantial growth in revenue underpins bunq’s profitable trajectory not just for the past year but also for its future prospects.
The newly acquired funds are designated for significant expansion initiatives. Specifically, bunq plans to enhance its market presence in the U.K. and to make a strategic entry into the U.S. market. The bank is preparing to reapply for a banking license in the U.S. through the Office of the Comptroller of the Currency (OCC), after a previous application was withdrawn due to regulatory challenges with Dutch and U.S. authorities.
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