Tink announced on December 11 that it had raised 103 million dollars, or 85 million euros, from Eurazeo Growth and Dawn Capital funds, with the participation of PayPal Ventures, HMI Capital, Heartcore, ABN AMRO Ventures, Poste Italiane and Opera Tech Ventures, the BNP Paribas subsidiary dedicated to venture capital.
This funding round, which values the start-up at $ 825 million, aims to finance the expansion of its network of partners, banks and payment services, in Europe, which currently has 3,400 (including PayPal, NatWest, ABN AMRO, BNP Paribas, Nordea, Lydia, Kivra, SEB…), and 8,000 developers using its API. It is more precisely an additional round, Tink having raised in January of one year 105 million dollars.
A single API
Founded in Stockholm in 2012, Tink has developed a plug-and-play open banking technology based on a cloud platform and APIs. The start-up has created SDKs that make it easy and quick to create new financial products, which can be used separately or together to transform financial services.
Tink aggregates data through connections to European banks and financial institutions in real time. Its users do not need a DSP2 license, the use of out-of-the-box authentication flows allowing it to operate under its own license.
Concretely, the solution offers to facilitate the creation of applications for personal finance management, payment initiation (to give end customers the possibility of making payments and transfers from an application or a website), subscription credit or invoice management. Tink’s stance is that by improving the value proposition of banks and fintech to their end customers, these companies will improve customer engagement and increase the sale of their financial products.
250 million customers
FinTech is also positioning itself with the big players in the industry by promising them to transform raw, unfiltered financial data into valuable intelligence in order to provide better data-driven services, with the aim of facilitating updates and creating more useful services. The analysis of customer spending (with their consent) thus makes it possible to formulate personalized offers.
The company has built its business model on commission, levied on transactions made by end customers. It says it currently processes one million payments per month in five markets.
Tink claims, because of the multitude of its partners, 250 million customers. The various financings allow it to accelerate its deployment in a context of development of online financial services. “Despite the difficulties of 2020, it has been a year of great growth for Tink“, summarizes Daniel Kjellén, co-founder and CEO of Tink, in a statement. 2020 has seen payments fueled by open banking take off, and in 2021 we expect the same scale, especially in the UK, then in Europe.“.
It is currently present in many European countries: United Kingdom, Germany, Spain, Italy, Portugal, Sweden, Denmark, Finland, Norway, Belgium, Austria, the Netherlands and France, where it settled in 2019. The fintech aims to expand into 10 new markets in 2021.