European open banking platform Tink has secured €85m in an investment round extension, to advance its growth plans and expand payment initiation in Europe.
The investment round extension was co-led by new investor and Eurazeo Growth, and current investor Dawn Capital, a UK-based B2B software venture capital firm.
Existing investors including PayPal Ventures, HMI Capital, Heartcore, ABN AMRO Ventures, Poste Italiane and BNP Paribas’ venture arm, Opera Tech Ventures, have made additional investments in Tink.
The investment extension follows the previous investment round closed at €90m in January, and makes the company’s capital raise in 2020 to reach €175m.
Tink co-founder and CEO Daniel Kjellén said: “Despite the difficulties of 2020, it was a year of great growth for Tink. We significantly built out our bank connections across Europe, increasing coverage from 2,500 to 3,400 banks, and now serve more than 300 world-leading financial institutions.
“We also doubled the fintech users on our platform to 8,000 and increased employees from 250 to 365, in 13 offices across Europe. 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.”
Tink to support and expand its payment initiation technology
The top-up funding is expected to strengthen Tink’s ongoing expansion and support the further development of its payment initiation technology, helping European companies to integrate streamlined, low-cost payment solutions.
Tink processes nearly one million payment transactions per month, for clients including digital mailbox provider Kivra, used by nearly 4 million adults in Sweden, and payment fintech Lydia, used by more than 5 million customers in France.
The company offers aggregated financial data, initiate payments, enriched transactions and helps customers to build personal finance management tools, all through its single API.
In 2020, Tink acquired three major businesses, including Swedish credit decisioning firm Instantor, Spanish account aggregation provider Eurobits, and the UK open banking aggregation platform OpenWrks.
The platform is currently being used in Sweden, UK, France, Spain, Germany, Italy, Portugal, Denmark, Finland, Norway, Belgium, Austria and the Netherlands.
Eurazeo Growth managing director Zoé Fabian said: “The open banking movement continues to pick up pace, with 2021 showing every sign that it will bring increased collaboration between fintechs and large enterprises, who want to take digitally enabled services to their customers with a tried and trusted partner.
“Since its inception eight years ago, Tink has proven itself to be the leading open banking platform in Europe, and our investment underlines the confidence we and the industry have in Tink and open banking. We look forward to supporting them on their continued journey.”
