The Finleap Group subsidiary specializing in banking-as-a-service (BaaS) strengthens its position in Europe. In a press release, SolarisBank announced that it had raised €60 million in Series C funding.
A solution designed for fintechs
Organized around payment and banking services, customer knowledge and anti-fraud tools, SolarisBank has developed a solution designed with startups in mind. To support these companies in the deployment of their financial services, the Berlin-based company founded in 2016 proposes that, rather than prospecting for banking partners and having to go through cumbersome regulatory procedures, they pick the building blocks they need from a centralized platform. In other words, companies using SolarisBank can take advantage of banking services without having to apply for approval themselves. Indeed, in France, startups seeking banking approval must comply with strict regulations, notably by proving their equity and guaranteeing a minimum level of solvency.
As part of its "as-a-service" approach, SolarisBank markets both its own products and those of third parties. Its banking license from the German regulator (BaFin) enables it to cover several European countries. Its business model is based on commissions charged on the activation of bank accounts and cards, as well as on transactions.
Recently, the fintech partnered with American Express to launch a new tool, Splitpay, which adds a credit option to any payment card, for purchases of 300 euros or more. This partnership, like the one signed in 2019 with Bitwala to offer a mobile current account with an integrated bitcoin wallet, confirms SolarisBank's model of using its European banking license to provide solutions that are easy to incorporate into existing systems.
Launch new products on European markets
In a press release published last June, the Berlin-based startup announced a Series C financing round worth 60 million euros. Led by HV Holtzbrinck Ventures, the round brings in new investors including Vulcan Capital, Samsung Catalyst Fund and Storm Ventures, in addition to existing investors BBVA, SBI Group, ABN AMRO Ventures, Global Brain, Hegus and Lakestar and Yabeo. This round of financing brings SolarisBank's valuation to 320 million euros.
The funds raised by the Finleap subsidiary, which currently employs 310 people of 52 different nationalities, should facilitate the launch of financial products on European markets and enable it toexpand its customer portfolio. By the end of the first quarter of 2020, SolarisBank had recorded almost 400,000 end-customer account openings spread across the 70 Fintechs it works with.