Penta, the German ‘challenger’ financial institution that provides a digital checking account concentrating on SMEs, has raised €2.2 million in funding. The seed spherical is led by Inception Enterprise Capital, a brand new London-based VC agency with a heavy fintech focus, and will likely be used for additional hiring, product growth and to gas progress.
Operating on prime of Banking-as-a-Platform solarisBank (slightly than holding a banking license of its personal), Penta is designed to fulfill the banking wants of small to medium-sized companies, together with startups. It launched publicly in Beta to companies in Germany in December, though there was initially a wait listing, which I’m informed is being lifted right now.
On the time of launch, co-founder and CEO Lav Odorovic argued that SMEs and startups are presently underserved by incumbent banks, which sees account opening being cumbersome and way more troublesome than it needs to be, while SMEs are charged exorbitant charges for making funds or worldwide cash alternate.
Penta has got down to deal with this and different unmet SME wants, equivalent to monitoring worker spending and automating accounting and invoicing. “We in the end concluded that enterprise homeowners desire a absolutely digital financial institution that’s straightforward to make use of and that has the apps and merchandise they should assist them scale faster, save extra money and time,” Odorovic mentioned.
The reference to “apps” is the place the upstart’s market banking comes into play (a technique being pursued in a single kind or one other by a plethora of fintech startups, together with the U.Ok.’s Starling, Curve, and Monzo, and Germany’s personal N26). This may see Penta combine the very best third-party fintechs and different service suppliers to fulfill the wants of SMEs, as an alternative of merely creating and up-selling its personal merchandise.
A part of the seed spherical will likely be used to launch the Penta market of third get together merchandise. These will embody automated accounting, low-cost FX, and a number of MasterCards with limits and permissions that may be given out to an SME’s varied workers.
“We wish to assist companies get off the bottom as shortly as attainable with out them having to fret about annoying banking paperwork or paying pesky charges. That’s why Penta is free to open and free to make use of,” says Odorovic in a press release. “We’re giving companies 10 free transactions monthly. Each transaction after the 10th is €zero.10 cents. Your Penta account can even include our stunning [bright green] MasterCard for on-line and offline funds”.