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Bunq Raises $31 Million After Quadrupling User Deposits in 2023

Bunq, Companjon Team on Embedded Insurance

European neobank Bunq’s shareholders signed a commitment letter in March to provide 29 million euros (about $31 million) of capital to finance the company’s growth.

The new commitment followed the majority shareholder’s injection of 125 million euros (about $133 million) up to December, Bunq said in its 2023 annual report.

“2023 saw Bunq growing faster than ever,” the company said in the annual report. “In order to accommodate the high influx of new users and to be able to give everyone a banking experience that makes life easy, Bunq received an additional 125 million euro in capital injections from shareholders, highlighting their confidence in the product and enabling us to continue our rapid growth.”

The neobank now has more than 11 million users, according to the report. Its user deposits quadrupled to 6.9 billion euros (about $7.3 billion) during 2023. Bunq attributed this growth to its strategy of giving users interest on their savings accounts that is among the highest possible.

“The growth in Bunq’s deposit has resulted in additional capital injections during 2023, and we foresee additional capital is required during 2024 to fulfill our capital requirements,” the company said in the report.

The company reapplied for an eMoney Institution (EMI) license in the United Kingdom in December, according to the report. It already serves U.K. residents who joined Bunq before Brexit, and with this license will be able to welcome all U.K. residents.

The company intends to re-file its application for a U.S. banking license and is considering alternative legal forms, such as a branch, per the report. It applied for an American banking license in April 2023 and opened offices in New York City but withdrew that application Jan. 31.

Meanwhile, in December, Bunq launched a generative artificial intelligence-driven platform, Finn, saying it will assist its users in functionalities like managing budgets, organizing finances and streamlining transaction searches.

In other new additions made during the year, the neobank added cash back and savings bonuses to its offerings in July and began providing its users with an extended warranty and purchase protection on certain purchases they make with their Bunq card in February 2023.