Bunq Raises $49 Million to Further International Expansion and Growth

European neobank bunq has closed a 44.5-million-euro (about $49 million) funding round that brings its total capital raised this year to nearly 100 million euros (about $111 million).

With this latest injection of capital, bunq’s investment valuation stands at 1.65 billion euros (about $1.8 billion), solidifying its status as the second-largest neobank in the European Union, bunq said in a Monday (July 24) press release.

The mobile bank will use the new capital to further its international expansion and its continued growth, according to the release.

“It’s been a truly magical year for bunq: We’re rapidly expanding and have seen massive deposit growth,” bunq founder and CEO Ali Niknam said in the release. “With more and more people entrusting their money to us, we’re convinced that we should double down on our momentum and cement the way forward for future growth.”

This year has been a record-breaking one for bunq, according to the release. It hit the 9 million user mark across Europe. Additionally, bunq has continued its deposit growth, doubling its deposit totals to 4.5 billion euros (about $5 billion) in the past four months.

Two years ago, bunq became the recipient of the largest Series A ever raised by a European FinTech when it raised 193 million euros (about $214 million), the release said.

Looking ahead, bunq expects to have its first full year of profit this year. The neobank booked its first net profit in the last quarter of 2022, per the release.

In February, bunq said it recorded its first quarterly profit as its net fee income grew by 37%. The achievement made it one of the rarified examples in a European neobank sector that remains crowded and challenged by thin profits and intense competition for share of mind and wallet.

The company has also been adding partnerships and announcing expansion plans.

On Tuesday (July 18), bunq added cash back and savings bonuses to its offerings, providing 1% cash back on food and drinks to Easy Money and Easy Green users, and 2% back on public transportation to Easy Green users.

In April, the neobank said it applied for a New York banking license with the Federal Deposit Insurance Corporation (FDIC) to bring its solutions to the United States.