Barcelona-based ID Finance, a fintech company, announced on Wednesday that it has raised €30M in equity led by UK-based asset manager Kingsway Capital.
After receiving a favourable review from the External Investment Board, the Spanish Council of Ministers officially endorsed the transaction, making it the largest investment inflow into a Spanish fintech in 2023.
The transaction includes primary capital infusion and a buyout of shares from the company’s early investors.
The capital injection is structured as a convertible loan with a maximum valuation of €235M.
ID Finance says it plans to utilise the funds to fuel the organic expansion of its business, with a focus on introducing Plazo, its primary financial wellness application, across Spain and Mexico.
Co-founder Boris Batine will assume the role of CEO of Plazo.
Batine says, “I’m very happy to welcome Kingsway, as our strategic partner. Having a new institutional investor on board opens a new horizon for ID Finance. I believe this is the beginning of a new chapter for the company, and we are very excited about the prospects of the Group”.
ID Finance: Providing retail banking & finance solutions
Founded by ex-bankers Boris Batin and Alexander Dunaev in 2012, ID Finance focuses on providing retail banking and finance solutions.
The Spanish platform uses machine learning and advanced data science techniques to provide competitive financial services to the underbanked and help customers build their credit profiles.
In addition, ID Finance launched its financial wellness app Plazo in 2021. It was developed to offer debit, saving, and credit solutions to help people achieve financial wellness.
The company claims to be consistently profitable, and since its inception in 2015, has processed over 10M credit applications.
Currently, the company employs over 400+ employees with offices in Barcelona, Mexico City, Mexico, and an engineering office in Warszawa, Poland.
Tamir Saeed, Managing Partner at Kingsway Capital, says, “ID Finance has a proven track record of using technology and data analytics to create innovative financial products, and we believe they are well-positioned to capture significant market share and drive financial inclusion across Europe and Latin America.”
