Fintech
Fintech Farm raises $32 million to expand its ‘neobank in a box’ model in India
Fintech Farm, a London-based startup that sells technology to mid-sized banks in emerging markets to build digital tools, has raised $32 million in funding.
The capital comes from an initial Series B round, led by London-based venture capital firm Nordstar, and a Series B extension round led by London Stock Exchange-listed Bank of Georgia.
The founding team includes one of the founders of Ukrainian neobank Monobank Dmytro Dubilet, former KPMG M&A executive Nick Bezkrovnyy and Alexander Vityaz, the founder of cloud-based operating systems provider Corezoid.
The company previously lifted up a $7.4 million round in 2022 led by Flyer One Ventures and Solid with participation from TA Ventures, Jiji, u.ventures and AVentures Capital.
Building banks for emerging markets
Fintech Farm, launched in 2020, works with mid-sized banks in emerging markets that are looking to build neobank apps but lack digital know-how. Dubilet says the startup differs from other Banking-as-a-Service (BaaS) operators, as it focuses on providing operational support rather than regulatory or infrastructure services.
“There are some banking as a service (BaaS) providers that give you a license and infrastructure,” Dubilet tells Sifted, “But we have great technology – which we call ‘a neobank in a box’ – that covers all of that what you need.” need to build a large, profitable digital bank.”
The main features it offers users are reminiscent of many of those offered by neobanks in Europe: “debit and credit cards, buy now pay later, equity investments; the standard products you would expect from a retail bank.”
For now it has launched in Azerbaijan, where it has partnered with a local bank to create an app-based offering for more than 1 million users, it says. In Vietnam, he partnered with the country’s Orient Commercial Joint Stock Bank to create Liobank. Fintech Farm is compensated by the banks it collaborates with based on the performance linked to the number of customers and the revenues they generate for their customers.
It is now focused on building a fintech product in India, where it hopes to increase consumer access to credit.
“India is one of the markets you have to be in these days,” says Bezkrovnyy, “The competition is pretty intense there, but now is a good time for us to enter.”
He cites the huge spread of a digital payment system in the named country Unified payment interfacewhich makes it easier for Fintech Farm to partner with local banks to offer lending products.
B2B fintech continues to reign supreme
Fintech Farm’s funding round is the latest sign that European tech investors are focused on fintechs building B2B business models.
Last month, Paris-based Payflows raised 25 million euros funding round for its CFO-focused accounting platform. This followed a $24 million investment in London-based fintech banking-as-a-service Griffin from backers including MassMutual Ventures, Nordic Ninja and Breega in March.
While late-stage consumer fintechs like Monzo are capable of doing so increase megaroundsEuropean fintechs targeting corporate customers have raised the largest share of funding in the sector this year. $2.1 billion went to B2B fintechs in Q1 2024 according to Dealroom, nearly double the Channeled 1.2 billion dollars towards consumer fintech.