PayPal Inc. (NYSE:PYPL) backed Swedish Company Raises €85 Million In Latest Funding Round
The open banking trend is gaining significant momentum in finance this year as calls increase for big banks to share customer data with startups and tech rivals increase. Several startups such as PayPal Inc. (NYSE:PYPL) backed Tink has raised considerable amounts in funding to boost their operations.
Tink raises €85 million in the latest funding round
The Swedish fintech firm which is a major player in the industry recently hit a massive milestone with its valuation rising to $824 million in the latest financing round. The bank provides software that allows fintech companies and banks to access banking information to develop new financial products. Recently the company raised around €85 million in a funding round jointly led by UK venture capital company Dawn capital and French private equity company Eurazeo.
The Swedish firm has seen its valuation jump 60% from €415 million it was worth at the beginning of the year according to people familiar with the matter that sought anonymity. The latest investment round tops up around €90 million funding the company secured at the beginning of the year. Interestingly Tink’s backers include online payment processing company PayPal and other major European banks such as ABN Amro and BNP Paribas.
Open banking sector growing
Open banking is an emerging fintech industry that aims at developing innovative financial products through the connection of data from established banks. According to open banking proponents, the tech can deliver competition and enhance transparency in the industry, and also enhance the customer experience.
The Stockholm-based company’s banking platform aggregates data from several banks which allows developers to create apps allowing users to make payments from multiple providers and check their accounts. Tink’s CEO and co-founder Daniel Kjellen said that despite the challenges experienced this year, the company has performed exceptionally well and there has been massive progress in open banking at large. He said that the forms continued to grow organically and it has been doing M&A throughout Europe to complement its platform. Early this year Tink expanded its operations in Europe through the acquisition of Eurobits, Instantior, and OpernWrks.