French investment bank Qonto acquires German fintech Penta
Paris-based fintech Qonto, an investment bank targeting small and medium-sized enterprises (SMEs) and the self-employed, is set to acquire German SME bank Penta for an undisclosed sum.
Qonto says the deal will help the company “achieve its strong ambitions for the German market” and “further accelerate profitable growth in all markets.”
The company is looking to bolster its presence in Germany after seeing strong traction in the country in 2021, with customer growth of 170% year-over-year. In addition to France and Germany, the company is also present in Italy and Spain.
Founded in 2017, Penta is a digital business finance solution for SMEs, individual entrepreneurs and freelancers, offering banking services and a marketplace for loans, deposits and insurance.
The combined company will have 300,000 customers and 900 employees as it seeks to “design the future of merchant banking”.
Alexandre Prot, CEO of Qonto, says the firm aims to be the “financing solution of choice for one million European SMEs and freelancers by 2025”.
The deal is expected to close in the coming weeks.
Qonto secured €486 million in Series D funding earlier this year, setting “a new record valuation for a French scale-up” of €4.4 billion. The company has raised €622 million in total funding.