How Finom’s €115M Series C Funding Is Powering Europe’s SMB Fintech Boom
In a time when startup funding remains selective, European fintech is still thriving—especially for those targeting underserved markets like small and medium-sized businesses. One standout is Finom, a fast-growing Amsterdam-based fintech startup, which has just secured a €115 million Series C equity round to expand its SMB-focused financial platform across Europe. This round follows closely on the heels of a $105 million growth round led by General Catalyst, showing strong investor confidence in Finom’s scalable model.
SMB-focused Finom: Building a One-Stop Financial Hub
At the heart of SMB-focused Finom lies its unique offering: a single platform that combines business banking, invoicing, and AI-enabled accounting. Designed specifically for entrepreneurs and smaller enterprises, the platform reduces the need for costly third-party services like accountants. CEO Andrew Petrov describes the product as empowering business owners to manage finances independently through automation and an intuitive interface. This all-in-one approach not only saves time but also simplifies compliance and financial reporting—pain points that many European SMBs often struggle with. Finom’s tools are built with usability and transparency in mind, making them highly attractive in a market that still leans on outdated, fragmented financial services.
Investors Back SMB-Focused Finom’s Expansion Across Europe
The Series C round, led by AVP (formerly AXA Venture Partners) and joined by new investor Headline Growth, as well as returning supporters like General Catalyst, Northzone, and Cogito Capital, signals a strong vote of confidence in Finom’s growth potential. What sets this round apart is not just the amount, but the strategic nature of the investment. For example, General Catalyst’s previous $105 million infusion came via its Customer Value Fund, a non-equity vehicle that supports startup expansion without taking ownership—offering Finom capital specifically for customer acquisition and product scaling. This hybrid funding model gives Finom flexibility to expand aggressively while maintaining tighter control over its equity cap table, a rare but increasingly popular trend in 2025 fintech deals.
Finom’s Competitive Edge in Europe’s Crowded Fintech Space
While SMB-focused Finom has not raised as much capital as fintech giants like Revolut or Monzo, its leaner funding rounds (totaling approximately $346 million) reflect a more focused, efficient approach. Its closest peer is Qonto, a French unicorn with about $700 million in funding. However, Finom differentiates itself with its deep integration of AI for accounting and its push toward enabling “accountant-free” business operations. With ambitions to reach 1 million customers by the end of 2026, the company is targeting a significant share of Europe’s 26 million SMBs. That vision, combined with a clear growth trajectory and a modular financial platform, positions Finom as a serious contender in the challenger bank space. Its biggest opportunity? Winning over SMBs frustrated by the slow pace and rigid structures of legacy banks.
A Fintech to Watch as Europe’s SMB Sector Booms
With its €115 million Series C, SMB-focused Finom is no longer just another fintech startup—it’s a key player in a rapidly expanding market. As European small businesses seek more agile, digital-first financial tools, Finom’s blend of banking, invoicing, and smart automation makes it uniquely suited to meet modern needs. Its strategy, centered on value, efficiency, and ease of use, is paying off. For investors, founders, and SMBs alike, Finom offers a glimpse into the future of business banking—one that's smarter, faster, and truly designed for the entrepreneurial age.
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