France’s Qonto raises €486 million at record-breaking valuation of €4.4 billion

Paris-based Qonto has raised €486 million in a Series D funding round, now providing the company with a €4.4 billion valuation, a new record in the French scale-up space. Qonto is an all-in-one finance solution for SMEs and freelancers, handling everything from everyday banking and financing to bookkeeping and spend management. The hefty heap of capital is slated to expand the company’s product offerings, strengthen market presence in Germany, Italy, and Spain, and new market entries, as last but not least, quadruple the headcount to over 2,000 employees by 2024. Since 2017, Qonto has raised an approximate total of €619.3 million.

Amassing over 220,000 customers in France, Germany, Italy, and Spain, Qonto has been steadily quadrupling its revenue numbers over the past two years. Over the next two years, the new funding will see over €100 million invested in each market as the company aims to become the brand of choice to SMEs and freelancing professionals.

If these plans weren’t ambitious enough, by 2023, the scale-up aims to be operational in markets outside the four bread and butters, with a target of 75% of new clients coming from outside its home market of France.

“We count on policymakers to continue their efforts to ensure entrepreneurship can succeed, leading to European and global champions that deliver innovation. This is only the beginning of our journey to best serve SMEs and freelancers and we couldn’t be more excited about what the future holds for us and our ambitions,” commented Qonto co-founder and CEO Alexandre Prot.

Qonto’s €486 million Series D funding round was led by new investors Tiger Global and TCV, with eight new contributors: Alkeon, Eurazeo, KKR, Insight Partners, Exor Seeds, Guillaume Pousaz, Gaingels, and Ashley Flucas also participating. Existing investors Valar, Alven, DST Global, and Tencent all followed on.

“Qonto has revolutionized business finance for SMEs and freelancers by marrying simplicity with a unique all-in-one service. The company has seen a significant increase in clients across its European markets during the coronavirus pandemic,” stated Tiger Global’s John Curtius. “This also shows that customers’ needs are evolving during these unprecedented times. We have tracked Qonto’s incredible growth for some time and are delighted to partner with the entire Qonto team and support their mission to serve a rapidly growing European market.”