Despite the Wirecard fallout, German fintech startup solarisBank has raised a Series C funding spherical of $67.5 million (€60 million). Following at this time’s funding spherical, solarisBank is now valued at $360 million (€320 million). solarisBank doesn't have any client product immediately. Instead, it affords monetary companies to different fintech firms by a set of APIs.
With solarisBank, you may construct a fintech startup and leverage solarisBank’s line of merchandise to do the heavy lifting. It’s an infrastructure firm within the banking area.
While solarisBank may not be a well-recognized identify, a few of its purchasers have turn into fairly common. They embrace challenger banks, akin to Tomorrow, Insha and a newcomer known as Vivid, enterprise banking startups, akin to Penta and Kontist, buying and selling app Trade Republic, cryptocurrency startups Bison and Bitwala, and so on.
Overall, solarisBank works with 70 firms which have attracted 400,000 purchasers in complete.
HV Holtzbrinck Ventures is main the spherical with present investor yabeo committing a considerable follow-on funding. Other new traders embrace Vulcan Capital, Samsung Catalyst Fund and Storm Ventures. Existing traders BBVA, SBI Group, ABN AMRO Ventures, Global Brain, Hegus and Lakestar are investing once more.
The firm began the fundraising course of again in December. Due to the financial prospects, it has been a combined course of. “Lots of traders checked out their portfolio firms and the urge for food to take a look at one thing new was not there,” solarisBank CEO Roland Folz instructed me. But every part labored out finally as round half of the funding comes from present traders.
“We initially had been searching for €40 million however we had been overwhelmed by the curiosity of traders despite Covid,” solarisBank Head of Strategy and Shareholder Relations Layla Qassim instructed me.
solarisBank’s imaginative and prescient might be summed up in two phrases — regulation and modularity. The firm is a completely licensed financial institution, which signifies that its purchasers don’t have to use to a banking license themselves.
And the startup enables you to choose the modules that you simply need to use in your product. Maybe you’re constructing a cell cryptocurrency pockets and also you simply need to have the ability to give an IBAN and a debit card to your customers. Maybe you’re constructing a used automotive market like CarNext and also you need to supply credit score. Maybe you need to construct a challenger financial institution however deal with a particular vertical.
With solarisBank, you may open financial institution accounts and situation cost playing cards hooked up to these accounts. You may also situation playing cards and fix them to a distinct account in case you’re integrating with present financial institution accounts. The startup additionally affords numerous companies round funds, vouchers, cross-border transactions and extra.
More not too long ago, the corporate launched a brand new characteristic known as Splitpay with American Express. When prospects take a look at on an e-commerce platform in Germany, American Express prospects will have the ability to select a compensation plan to pay over a number of months.
solarisBank generates income from its purchasers as they pay to make use of the corporate’s APIs and allow accounts and playing cards. solarisBank additionally collects the interchange charges on card transactions and share income with its purchasers. Similarly, solarisBank can supply to share income on credit score pursuits with its purchasers.
In the long run, solarisBank plans to make its portfolio of economic companies much more compelling by introducing native IBANs in crucial European markets. It ought to make it simpler to persuade potential purchasers outdoors of Germany to make use of solarisBank as their banking infrastructure.