British private equity house Pollen Street Capital is investing €193m in Dutch online bank Bunq in return for fewer than 10% of the shares, valuing the company at €1.6bn.
At the same time, Bunq is taking over Irish loan company Capitalflow Group for €141m from Pollen Street as part of its growth strategy.
‘Thanks to this deal we’ll strengthen the long-term sustainability of Bunq by becoming structurally profitable by then end of the year,’ owner and founder Ali Niknam said. ‘that’s a unique accomplishment – an industry first to the best of my knowledge.’
The Dutch company was established in 2015 by Niknam, who has invested nearly €100m of his own capital in it and was, until the Pollen Street deal, the only shareholder.
Bunq currently offers subscription-based online banking services in 30 markets.
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