Capitalflow acquired by Dutch fintech for undisclosed fees

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Irish commercial lender Capitalflow has been acquired by Dutch fintech Bunq for an undisclosed amount. The transaction is subject to the approval of the Dutch financial regulator.

Speaking to The Irish Times, Capitalflow chief executive Ronan Horgan said the acquisition would give it better access to financing at competitive rates and increase its scale. Capitalflow’s goal is to triple the size of its loan portfolio to € 1 billion over the next three years, he said.

The latest accounts from Capitalflow Holdings show that its loans and advances to customers amounted to 331 million euros at the end of 2019, 78% more than a year earlier.

Accumulated losses

The company made a profit of 232,753 € for the year, having recorded a loss of just under 2.2 million euros in 2018. It had accumulated losses of just over 8 million euros at the end of 2019.

Mr Horgan said the company suffered a loss in 2020 due to provisions recorded due to the impact of Covid-19 on the economy. But the business went black this year and the level of customer loans remained unchanged.

Dublin-based Capitalflow employs 60 people and currently has around 3,000 clients on its books. It lends to SMEs in a wide range of sectors across the Irish economy.

Consumers and businesses

Bunq was founded in 2012 by successful Canadian-born entrepreneur Ali Niknam, who invested € 98.7 million in the company. It provides online subscription banking services to consumers and businesses.

Based in the Netherlands, it claims to have exceeded € 1 billion in user deposits earlier this year and its services are available in 30 countries.

The Dutch group has raised 193 million euros this year, in particular from the British private equity Pollen Street Capital, owner of Capitalflow, for a valuation of 1.6 billion euros.

Bunq said he recently hit his very first profitable month and “expects to break even on a monthly basis before the end of 2021”.

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