As the year draws to a close, Tink has announced a funding round extension of €85 million, following its €90 million investment round in January. This top up brings the total invested in Tink during 2020 to €175 million.
The investment will fuel Tink’s continued expansion, and further develop its payment initiation technology, that will let companies of all shapes and sizes across Europe integrate streamlined, low-cost payment solutions.
The investment round was co-led by new investor, European growth equity player Eurazeo Growth, and current investor, London-based B2B software venture capital firm Dawn Capital. Existing investors PayPal Ventures, HMI Capital, Heartcore, ABN AMRO Ventures, Poste Italiane and BNP Paribas’ venture arm, Opera Tech Ventures, all increased their investments.
‘Despite the difficulties of 2020, it was a year of great growth for Tink,' says Daniel Kjellén, co-founder and CEO of Tink. ‘We significantly built out our bank connections across Europe, increasing coverage from 2,500 to 3,400 banks, and now serve more than 300 world-leading financial institutions. We also doubled the fintech users on our platform to 8,000 and increased employees from 250 to 365, in 13 offices across Europe.'
‘2020 has seen payments powered by open banking take-off, and in 2021 we expect to see this scale – most prominently in the UK, followed by Europe. This funding extension will further facilitate the development of our payment initiation services across Europe, while continuing to deliver new data-products built on open banking technology to our customers.’
Today, Tink processes close to 1 million payment transactions per month in five markets, for clients including digital mailbox provider Kivra, used by close to 4 million adults in Sweden, and payment fintech Lydia, used by more than 5 million customers in France. Tink aims to make its payment initiation services live in 10 markets in 2021.
‘The open banking movement continues to pick up pace, with 2021 showing every sign that it will bring increased collaboration between fintechs and large enterprises, who want to take digitally enabled services to their customers with a tried and trusted partner,’ says Zoé Fabian, Managing Director of Eurazeo Growth. ‘Since its inception eight years ago, Tink has proven itself to be the leading open banking platform in Europe, and our investment underlines the confidence we and the industry have in Tink and open banking. We look forward to supporting them on their continued journey.’
During 2020 Tink made three major acquisitions, as part of its strategy to invest in intelligent data-services based on open banking. Tink acquired Swedish credit decisioning firm Instantor, giving Tink increased capability in credit risk products built on top of its open banking connectivity, Spanish account aggregation provider Eurobits, significantly increasing Tink’s bank connectivity in Europe, and the aggregation platform of UK open banking pioneer, OpenWrks, which will bring UK business account data to Tink’s customers.
‘Tink has truly emerged as Europe's leading open banking platform,’ says Josh Bell, General Partner of Dawn. `We have seen activity across Tink's network rapidly accelerate this year, with increasing adoption and implementation of open banking products and services across their platform. We are delighted to support Tink’s latest funding round, and look forward to working with the team across 2021 to expand the breadth and depth of its already considerable network of banks, accelerate the rollout of its account-to-account payments initiation solutions, and continue to deliver exceptional value to its fast-growing customer base.”