French Neobank Qonto Expands To Four Countries And Pursues Acquisitions
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French bank Qonto is preparing to open new branches in Austria, the Netherlands, Portugal, and Belgium, as part of its plan to grow in Europe.
Qonto was launched in 2016 and helps small businesses and freelancers with online banking and services, such as sending invoices and keeping accounts. The company said this plan will help it grow stronger in Europe, where small businesses and freelancers make up almost all of the businesses.
The Company Seeks To Grow Its Client Base And Bring In New Products
The Chief Executive Officer of Qonto, Alexander Prot noted that when he started Qonto, along with his co-founder Steve Anavi, their aim has always been the same: to build the top business finance solution in Europe. After the company did well in Germany, Spain, and Italy, the team is sure it’s time for the next step in growing in Europe.
Qonto is starting its service in all four countries but won’t open any new offices right away. Prot says these offices might be ready by 2025 depending on how well the expansion goes.
Since these new markets are large and the firm just started, most of its work will still happen in France, Spain, Germany, and Italy, Prot stated.
The company is also looking for ways to grow its reach in both new and current markets through buying other businesses. Qonto wants to make its technology or client base stronger and also add new products to its services.
As of now, Qonto has bought two firms. In 2022, a couple of years after starting in Germany, Qonto took over the German rival Penta, gaining 50,000 customers. A few months ago, the company bought Regate, an accounting fintech, which helped Qonto add more products and attract new clients like accountants and accounting companies.
Qonto Aims To Be Profitable By 2025 And Is On Track To Achieve This Goal
The French company last secured €486 million in a Series D funding round in 2022, with investors like Tiger Global and DST Global. Two people who know about the company’s finances revealed that Qonto’s yearly revenue is close to hundreds of millions of euros, which Qonto didn’t confirm. The company aims to be profitable by 2025, and Prot says it’s on the right path.
According to Prot, Qonto’s goal is to increase its customers to 1 million by 2026. Once it reaches that size, the neobank might think about going public.
The company is not focusing on going public right now but it could happen when it has grown enough. Prot noted that staying private, like Revolut or Stripe, could be an option, especially if it remains profitable.
