Solarisbank raises €190m in Series D, acquires Contis for UK foothold
Banking-as-a-Service (BaaS) provider Solarisbank has raised €190 million in a Series D funding round, spending a portion of it to acquire UK competitor Contis.
Solarisbank says its latest round gives the firm a valuation of €1.4 billion, settling its status as a European unicorn.
CEO Rolan Folz tells Reuters that his firm had looked into ways to organically expand into the UK, but decided on the acquisition route instead.
He calls Contis a “fantastic business” which ticks the boxes from a “geographical perspective and licence perspective”.
The German BaaS provides digital accounts, payments cards, and lending services to corporates and new banks on the block.
Its customers, which cover some one million retail accounts, include Trade Republic, Bitwala, Penta, and Kontist.
The Contis purchase will furnish Solarisbank with new payment processing capabilities, and the combined group expects revenues of between €80 million and €100 million.
The Series D was led by Decisive Capital Management. Existing backers Yabeo Capital, BBVA, Vulcan Capital, and HV Capital participated, alongside newcomers Pathway Capital Management, CNP, and Ilavska Vuillermoz Capital.
Reports surfaced earlier this year stating Solarisbank might be looking to go public via a deal with a special purpose acquisition company (SPAC).
According to Finance Forward, management at the firm favour the SPAC route towards a full IPO in early 2022.