The Germany-headquartered fintech will use the money to expand its embedded banking platform
Solaris, an embedded finance platform, has raised €38m in a series F round, led by existing investors.
The Germany-headquartered fintech will use the funds to strengthen governance and compliance and lay the foundation for the company’s next phase of growth.
Despite closing the 2022 financial year with net revenues of €130m and a growth of 30% compared to the previous year, the company reported a loss of €56m.
The Solaris management team took measures to “address the changed market conditions” that contributed to the fintech’s losses, and backed by its half-year results, believes it can operate profitably.
Founded in 2015, Solaris has raised a total of €390m backed by the likes of Visa, BBVA and CNP. Its services include digital banking, payments, lending, identification and digital assets.
On the financial turnaround, Carsten Höltkemeyer, chief executive officer of Solaris, said: “Over the last few months, we have been working hard on our priorities. We invested in the resilience of our platform, we are consistently hitting our monthly targets, and we have now secured the planned capital increase.
“The strong commitment of our shareholders is a testament to our strategy and the dedication of our employees.”
Solaris is in the early stages of implementing its strategy. On the next steps, Höltkemeyer added: “Our next milestone will be the integration of Contis (a banking-as-a-service provider which merged with Solaris last year) in order to exploit the full potential of our technology and product platform. This will be accompanied by further reduction of complexities and focus on our core products.”
In other company news, chief operating officer Chloé Mayenobe will depart on 31 July. The position will not be refilled.
Mayenobe commented: “It has been a unique opportunity to be part of Solaris’ journey to become Europe’s leading embedded finance platform.”