Solarisbank among first German fintechs mulling Spac deal
Solarisbank, the German banking-as-a-service (BaaS) provider, is currently mulling the route of a special purpose acquisition company (Spac) merger to go public.
According to Finance Forward, management and investors are currently discussing the sale to a listed company shell.
Another round of financing, which would follow a $67.5 million Series C in June, is still on the cards, alongside a classic initial public offering (IPO).
But management currently favour the Spac route, which could lead to an IPO in early 2022.
The BaaS provider is aiming for a billion-dollar valuation, according to Finance Forward.
The report suggests Solarisbank will commission one of Germany’s large investment banks to initiate the process shortly.
Unlike Solarisbank, Berlin deposit broker Raisin and Munich robo-advisor Scalable Capital have both said in recent weeks that they are not considering a Spac at present.
Solarisbank was valued at €320 million following its Series C. Since its launch in 2016, the fintech is now turning over an annual revenue of €35 million. An 85% increase compared to the previous fiscal year.
The BaaS provider’s customers, which cover some one million retail accounts, include Trade Republic, Bitwala, Penta, and Kontist.
One insider told Finance Forward that Solarisbank offers up good prospects for a Spac deal, having achieved sizeable recognition but with room still to grow at a consistent rate.
Venture capital firm HV Holtzbrinck Ventures and early-stage German investor yabeo both back Solarisbank. Alongside Samsung Catalyst Fund, BBVA, SBI Group, and ABN AMRO Ventures.
Solarisbank’s strategy and shareholder relations head, Layla Qassim, said back in June 2020 that the fintech originally sought to raise just $45 million (€40 million). Instead, the start-up got an additional $22.5 million.