French business banking firm Qonto snaps up German fintech Penta

Parisian fintech Qonto, a business banking company targeting small and medium-sized enterprises (SMEs) and freelancers, is set to acquire German SME banking outfit Penta for an undisclosed sum.

Qonto acquires Penta

Qonto says the deal will help the firm “achieve its strong ambitions for the German market” and “further accelerate profitable growth across all markets”.

The company is looking to boost its presence in Germany having experienced strong traction in the country over 2021, with 170% year-on-year customer growth. As well as France and Germany, the firm also has operations in Italy and Spain.

Founded in 2017, Penta is a digital business finance solution for SMEs, sole proprietors and freelancers, offering banking services and a marketplace for loans, deposits and insurance.

The combined company will boast 300,000 customers and 900 employees as it looks to “design the future of business banking”.

Alexandre Prot, CEO at Qonto, says the firm has ambitions to be the “finance solution of choice for one million European SMEs and freelancers by 2025”.

The deal is expected to close in the next few weeks.

Qonto secured €486 million in Series D funding earlier this year, setting “a new record valuation for a French scale-up” of €4.4 billion. The company has raised €622 million in total funding.