Banking platform solarisBank raises $67.5 million at $360 million valuation – TipsClear
Despite the wirecard fallout, German fintech startup Solarisbank has raised a C Series C funding round of $ 67.5 million (€ 60 million). After today’s funding round, SolarisBank is now valued at $ 360 million (€ 320 million). SolarisBank does not own any consumer products directly. Instead, it provides financial services to other fintech companies through a set of APIs.
With SolarisBank, you can build a fintech startup and leverage SolarisBank’s line of products to perform heavy lifting. It is an infrastructure company in the banking sector.
Although SolarisBank may not be a well-known name, some of its customers have become quite popular. They include Challenger Banks, such as Kal, a newcomer named Insha and Vivid, business banking startups, such as Penta and Contist, trading app Trade Republic, cryptocurrency startups Bison and Bitwala, and more.
In total, SolarisBank works with 70 companies that have attracted 400,000 customers in total.
HV Holtzbrinck Ventures is leading the round with existing investor Yabio, following substantial investments. Other new investors include Vulcan Capital, Samsung Catalyst Fund and Storm Ventures. Existing investors are reinvesting BBVA, SBI Group, ABN AMRO Ventures, Global Brain, Hegus and Lakestar.
The company started the fundraising process back in December. It has been a mixed process due to economic prospects. “A lot of investors looked at their portfolio companies and had no appetite to see anything new,” SolarisBank CEO Roland Folge told me. But everything eventually worked out as almost half of the money comes from existing investors.
“We were originally looking for € 40 million, but we were overwhelmed by investor interest despite Kovid,” Solarisbank Head of Strategy and Shareholder Relations Laila Qasim told me.
SolarisBank’s vision can be summed up in two words – regulation and modularity. The company is a fully licensed bank, meaning its customers will not have to apply for a banking license themselves.
And Startup lets you choose the modules you want to use for your product. Maybe you are building a mobile cryptocurrency wallet and you only want to be able to give your users an IBAN and debit card. Maybe you are building a used car market like CarNext and you want to offer credit. Maybe you want to build a challenging bank, but address a specific vertical.
With SolarisBank you can open bank accounts and issue payment cards associated with those accounts. If you are integrating with existing bank accounts, you can also issue cards and attach them to a separate account. The startup also offers various services around payments, vouchers, cross-border transactions and more.
More recently, the company launched a new feature called SplitPay with American Express. When customers check in on the e-commerce platform in Germany, American Express customers will be able to choose a repayment plan to pay for several months.
SolarisBank generates revenue from its customers as they pay to use the company’s APIs and enable accounts and cards. SolarisBank also collects interchange fees on card transactions and shares revenue with its customers. Similarly, SolarisBank can offer revenue sharing with its customers on credit interests.
In the future, SolarisBank plans to make its portfolio of financial services more compelling by introducing local IBANs in most European European markets. Potential customers outside of Germany should make it easy to use SolarisBank as their banking infrastructure.