Open banking company Tink is planning to expand development of its payment initiation services across Europe and deliver new data products after completing an €85 million investment round extension.
The €85 million investment is an extension of its January round in which the Sweden-based company landed €90 million.
The investment round was co-led by a new investor, Eurazeo Growth, and current investor UK-based venture capital firm Dawn Capital.
Existing investors PayPal Ventures, HMI Capital, Heartcore, ABN AMRO Ventures, Poste Italiane and BNP Paribas’s venture capital arm, Opera Tech Ventures, increased their investments in Tink.
Founded in 2012, Tink allows customers to access aggregated financial data, initiate payments, enrich transactions and build personal finance management tools.
Tink’s open banking technology and connectivity powers digital services for more than 300 banks and fintech companies, including PayPal, NatWest, ABN AMRO, BNP Paribas, Nordea and SEB, and is also used by more than 8,000 developers.
The company currently processes close to one million payment transactions per month in five markets and aims to make its payment initiation services live in 10 markets in 2021.
Tink made three major acquisitions during 2020 as part of its strategy to invest in intelligent data services based on open banking.
The company acquired Swedish credit decisioning firm Instantor, improving its capability in credit risk products built on top of its open banking connectivity, Spanish account aggregation provider Eurobits, significantly increasing its bank connectivity in Europe, and the aggregation platform of UK open banking developer OpenWrks, which will bring UK business account data to Tink’s customers.
Daniel Kjellén, co-founder and chief executive officer of Tink, says 2020 saw payments powered by open banking take off and expects “to see this scale” in 2021.
He continues: “This funding extension will further facilitate the development of our payment initiation services across Europe, while continuing to deliver new data-products built on open banking technology to our customers.”
Zoé Fabian, managing director of new investor Eurazeo Growth, adds: “The open banking movement continues to pick up pace, with 2021 showing every sign that it will bring increased collaboration between fintechs and large enterprises, who want to take digitally enabled services to their customers with a tried and trusted partner.”
“Since its inception eight years ago, Tink has proven itself to be the leading open banking platform in Europe, and our investment underlines the confidence we and the industry have in Tink and open banking. We look forward to supporting them on their continued journey.”