Solaris Successfully Closes €140 Million Funding Deal
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Solaris, a German Banking-as-a-Service platform announced that it has received €140 million in new funds. The Series G financing round was guided by SBI Group and Boerse Stuttgart Group, with help from different investors and partners who gave support.
According to the update, SBI Group will take the largest share as part of the Series G round. Solaris was worth $1.6 billion in 2021. Last March, it got €96 million in a Series F financing round and also received a financial guarantee of up to €100 million in capital. This was meant to help with a major contract with the motor association Adac.
The Funds Will Also Help Boost Market Growth And Strengthen Core Capital
Solaris Chief Executive Officer Carsten Höltkemeyer said the new funds showed the end of a two-year change period. He explained that this gave a strong base for future growth and the money would help keep the business running until it reaches profit. He added that it would also speed up efforts to grab market openings and grow its main capital.
Last year, Solaris sold its Engage business, which was part of Contis, to UK-based banking provider Suits Me.
Engage provides a Banking-as-a-Service platform for community banks and credit unions. It helps them add cards, accounts, and payment services to their offers.
The buy, which was done for an unknown amount, included moving all Engage Card customers’ accounts to Suits Me. This needed customer agreement before the switch.
The firm is reportedly under money strain due to slow sales revenue from the Adac contract and the size of the UK EMI business write-off.
Solaris Announced A Major Transformation Plan
The company shared in September that it was beginning a major change plan. This would lead to closing down most of its EMI business. The EMI unit was originally part of Contis, a payment company that Solaris bought in 2021 and completely merged into the EMI brand after one year.
The deal was in line with Suits Me’s focus on helping people who do not have easy access to banking. The company gives its account holders different banking-like services. These include online account use, direct debits, contactless debit cards, and mobile apps.
Suits Me Chief Executive Officer Matthew Sanders said the buy was a good chance for growth and it matched the company’s goal of bringing banking services to more people. He stated that Suits Me planned to keep up the good work Engage had done with credit unions and the firm would continue to give customers the financial resources they need.
