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Fintech Farm raises $32m to expand its ‘neobank in a box’ model to India
London-headquartered Fintech Farm has secured additional funding as part of its strategy to expand its operations into India.
The startup, which specializes in providing technology solutions to medium-sized banks in emerging markets to develop digital tools, has raised $32 million in funding.
This funding includes an initial Series B round led by London-based venture firm Nordstar, followed by an extension Series B round led by Bank of Georgia, listed on the London Stock Exchange.
Fintech Farm’s founding team includes Dmytro Dubilet, one of the founders of Ukrainian neobank Monobank, former KPMG M&A executive Nick Bezkrovnyy, and Alexander Vityaz, the founder of Corezoid, a cloud-based operating system provider.
Previously, the company raised a $7.4 million round in 2022 led by Flyer One Ventures and Solid, with participation from TA Ventures, Jiji, u.ventures, and AVentures Capital.
Fintech Farm, established in 2020, partners with medium-sized banks in emerging markets seeking to build neobank apps but lacking digital expertise. Dubilet explains that the startup differs from other banking-as-a-service (BaaS) players by focusing on providing operational support rather than regulatory or infrastructure services.
According to Dubilet, Fintech Farm offers comprehensive technology solutions, often referred to as ‘a neobank in a box,’ covering all the essentials for building a large and profitable digital bank.
The startup has already launched its solutions in Azerbaijan, where it partnered with a local bank to offer an app-based service to over 1 million users. In Vietnam, it collaborated with Orient Commercial Joint Stock Bank to establish Liobank. Fintech Farm earns compensation based on performance, tied to the number of customers and revenues generated for its partner banks.
Fintech Farm is now focused on developing a fintech product in India, aiming to enhance consumer access to credit. Bezkrovnyy highlights India’s robust digital payment ecosystem, particularly the Unified Payments Interface, which facilitates partnerships with local banks to offer lending products.
The funding round for Fintech Farm underscores Europe’s investment trend favoring fintechs with business-to-business (B2B) models. In the first quarter of 2024, B2B fintechs received $2.1 billion in funding, nearly double the amount allocated to consumer fintechs.
Source: sifted.eu
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