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Tink’s valuation has jumped more than 60% in 2020. At the beginning of the year, the Swedish fintech startup’s valuation was €415 million.
PayPal-backed Swedish fintech startup Tink is now valued at 680 million euros ($827 million) after a new investment round extension. Tink is one of the tech startups that have ventured into open banking. Apart from PayPal Holdings Inc (NASDAQ: PYPL), Tink is also backed by top European banks like BNP Paribas and ABN. Other participants in the latest investments round are Heartcore, Poste Italiane, HMI Capital, ABN AMRO Ventures, and Opera Tech Ventures.
New Investment Round Pushes Tink to Higher Valuation
On the 11th of December, Tink announced that the firm had closed the year with an €85 million with a new investment round extension. In the announcement, Tink revealed that the investment was co-led by French investment company Eurazeo and London-based venture capital firm Dawn Capital. Before now, the fintech startup raised €90 million in an investment round in January. In total, Tink secured €175 million through investment in 2020.
Also, the announcement highlighted Tink’s plan for the newly-generated funds. The tech firm will use the funds to further the firm’s expansion and develop its payment services in Europe. Already, Tink links services to about 250 million people and up to 3,400 banks. As of January, the company had 2,500 banking partners. Other partners of the fintech startup include NatWest, ABN AMRO, SEB, and Nordea. Also, about 8,000 developers use Tink’s APIs.
Tink’s Growth in 2020
According to a CNBC report, three sources confirmed that Tink is now valued at over $800 million after the recently-concluded investment round. The anonymous sources said that Tink valuation had jumped more than 60% in 2020. At the beginning of the year, the Swedish fintech startup’s valuation was €415 million.
The unprecedented coronavirus pandemic has led to a rise in digital banking. During the stay-home period, several online services were debited to cater to people and businesses. In addition, the global digital financial sector also recorded increases.
As noted by TechCrunch, the co-founder and CEO of Tink Daniel Kjellén, said:
“Despite the difficulties of 2020, it was a year of great growth for Tink. 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.”
In a statement, Eurazeo Growth MD Zoé Fabian mentioned that more fintech and large businesses would partner in the coming year. Fabian also said that Tink has grown over the past eight years to become a leading open banking platform in Europe. He added:
“We look forward to supporting them on their continued journey.”
Currently, Tink processes about 1 million payment transactions monthly in five markets. The fintech startup hopes to expand its services to 10 markets in 2021.