European open banking platform Tink announced it has raised €85 million during an investment round extension, following its €90 million investment round in January. This brings the total invested in Tink this year to €175 million.

The investment round boosting its valuation to €680 million was co-led by a new investor, European growth equity player Eurazeo Growth, and current investor, London-based B2B software venture capital firm Dawn Capital. Existing investors PayPal Ventures, HMI Capital, Heartcore, ABN AMRO Ventures, Poste Italiane and BNP Paribas’ venture arm, Opera Tech Ventures, increased their investments in Tink.

This funding top up will fuel Tink’s continued expansion and support the further development of its payment initiation technology, enabling companies of all shapes and sizes across Europe to integrate streamlined, low-cost payment solutions.

Tink aims to make its payment initiation services live in 10 markets in 2021. Through one API, Tink allows customers to access aggregated financial data, initiate payments, enrich transactions and build personal finance management tools.

Tink is said to power digital services for over 300 world-leading banks and fintechs including PayPal, NatWest, ABN AMRO, BNP Paribas, Nordea and SEB and is also used by more than 8,000 developers.

Tink made three major acquisitions this year, as part of its strategy to invest in intelligent data-services based on open banking. It acquired Swedish credit decisioning firm Instantor, giving Tink increased capability in credit risk products built on top of its open banking connectivity, Spanish account aggregation provider Eurobits, significantly increasing Tink’s bank connectivity in Europe, and the aggregation platform of UK open banking pioneer, OpenWrks, which will bring UK business account data to Tink’s customers.

Tink is currently live in Sweden, UK, France, Spain, Germany, Italy, Portugal, Denmark, Finland, Norway, Belgium, Austria and the Netherlands. Founded in 2012 and headquartered in
Stockholm, Tink has more than 350 employees and is currently serving its clients out of 13 local offices across Europe.

Daniel Kjellén, Co-founder and CEO of Tink, said:

“Despite the difficulties of 2020, it was a year of great growth for Tink. We significantly built out our bank connections across Europe, increasing coverage from 2,500 to 3,400 banks, and now serve more than 300 world-leading financial institutions. We also doubled the fintech users on our platform to 8,000 and increased employees from 250 to 365, in 13 offices across Europe.

 

“2020 has seen payments powered by open banking take-off, and in 2021 we expect to see this scale – most prominently in the UK, followed by Europe. 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.”

Featured image credit: Co-founders Daniel Kjellén (CEO) and Fredrik Hedberg (CTO)