Bunq Secures €160M Investment, Valuation Hits €1.65B

Dutch digital bank Bunq has secured its first external funding, raising €160 million from an undisclosed British private equity firm. The investment values the bank at €1.65 billion, with Bunq selling 10% of its equity in the deal.

Founded by Ali Niknam, Bunq has become one of Europe’s leading challenger banks without previous external funding. Niknam, who launched the bank using funds from his earlier venture, web-hosting startup TransIP, had long resisted outside investment. In 2015, he famously declared that he would “rather sell a kidney” than seek external financing, citing concerns about maintaining the company’s ideological purity.

However, Niknam’s stance softened over time. Last year, he hinted that venture capital funding could be a future step for Bunq, and a year ago, he acknowledged that external financing was a possibility. The recent deal also reportedly involves Bunq acquiring a small and medium-sized enterprise (SME) lender from the private equity firm’s portfolio.

Despite its growth, Bunq has yet to achieve profitability. In 2019, the bank reported a loss of €13.9 million, and Niknam has personally invested €100 million into the business since its inception.

This latest investment places Bunq among the ranks of Dutch fintech unicorns, joining the likes of payment processors Adyen and Mollie, which have both achieved valuations exceeding $1 billion.