In November 2023, the company raised €12M in funding through a strategic deal with an undisclosed European bank. ID Finance’s deal with a listed bank was a first-of-its-kind agreement.
Investor supporting ID Finance
The debt funding came from i80 Group, a New York-headquartered investment firm that specialises in providing tailored financing solutions to empower growth in the innovation economy.
Tamir Saeed, Managing Partner UK-based asset manager Kingsway Capital and shareholder of ID Finance, says, “We are pleased to welcome i80 Group as a partner, and look forward to them helping ID Finance to further support their mission of improving the financial wellness of underserved consumers in Spain and Mexico.”
“This financing is a critical achievement on the path to realising the company’s vision, as it immediately gives Plazo the opportunity to scale to the next level, and we are very excited about the next chapter of the company’s journey.”
Peter Frank, MD at i80 Group, adds, “i80 Group is excited to be partnering with ID Finance, a market leader in consumer fintech, to grow its customer base and product offerings. The company is uniquely positioned to fill an important gap in the financial services market with a combination of access to capital and financial wellness tools and services.”
Offering sustainable and responsible financial solutions
Founded in 2012 by ex-bankers Boris Batin and Alexander Dunaev, ID Finance specialises in delivering innovative financial solutions.
The company leverages machine learning and advanced data science to offer competitive financial services to the underbanked, helping customers build credit profiles.
ID Finance launched its flagship financial wellness app, Plazo, in Spain in 2021. Plazo provides transactional, savings, and credit solutions, empowering users to take control of their finances and enhance financial stability.
The company reports to have consolidated revenues of €180M, marking a 13 per cent Y-o-Y growth. The Group’s net income stands at €7.1M.
ID Finance’s Spanish division remains a key profit driver, issuing €266M in new loans, with €124M in revenue and a net profit of €12.5M. The consumer lending business in Spain maintains market leadership, improving client quality and achieving a 56.1 per cent return on equity.
The funds will fuel the expansion of Plazo, ID Finance’s key financial wellness app. A strategic partnership with Meeting Pros underscores Plazo’s commitment to expanding services, offering users complimentary medical, legal, and veterinary consultations through the app.
Plazo has attracted over 190,000 customers since its 2021 launch in Spain, aligning with its mission to use technology to enhance individual financial well-being through a versatile product suite.
Boris Batine, co-founder of ID Finance, says, “This financing is not just a testament to our past achievements but a bridge to our future aspirations.”
“With the support of i80 Group, we are set to scale to new heights in financial innovation and inclusivity, making Plazo an indispensable tool for financial wellness across Spain and beyond.”
“This agreement represents a turning point in our business trajectory and brings us closer to our goal of becoming the financial app of choice across Spain. Our journey has just begun, and we remain committed to enriching lives through technology-driven financial innovation,” adds Batine.