Open banking platforms, where services that might not have previously lived next to each other are now joined up by way of APIs, has been one of the emerging trends of the last couple of years, and today one of the leaders in the space out of Europe has closed a round of funding to expand its business.
Tink, a startup out of Stockholm, Sweden that aggregates a number of banks and financial services by way of an API so that those can in turn be accessed via new channels, has raised €85 million (or $103 million at current rates), at a post-money valuation of €680 million (or around $825 million). It plans to use the capital to double down on expanding its network of banks and payment services in Europe. Tink already links up 3,400 banks, covering some 250 million people, with partners including PayPal, NatWest, ABN AMRO, BNP Paribas, Nordea and SEB, some of which are also strategic investors. On the other side, it has some 8,000 developers using its APIs.
This latest tranche of funding is being co-led by new investor Eurazeo Growth and Dawn Capital, with PayPal Ventures, HMI Capital, Heartcore, ABN AMRO Ventures, Poste Italiane and BNP Paribas’ venture arm, Opera Tech Ventures, also participating.
The funding comes less than a year after it announced a round of €90 million ($105 million) in January 2020, and is more specifically an extension of that round. For context, that previous round was at a €415 million ($503 million) valuation, and the company has definitely grown since then: in January it said it had 2,500 banking partners in its network. It has now raised €175 million in total.
The last year — shaped by a global health pandemic — has been all about bringing more services online and into the cloud, so people and businesses that can no longer do things like banking or selling/shopping in person can still get things done. That has most definitely played out strongly in the world of financial services, with banks, bank competitors and their tech partners seeing a surge in demand for more flexible, digital channels.
“Despite the difficulties of 2020, it was a year of great growth for Tink,” said Daniel Kjellén, co-founder and CEO of Tink, in a statement. “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.”