Stockholm-based digital bank Northmill raises $30M to accelerate the geographical expansion. The capital round led by M2 Asset Management.
Northmill Bank, which has the vision to improve people's financial lives, has strengthened its ownership base and carried out a capital round of SEK 250 million ($30M) through its parent company Northmill Group AB. The capital round was led by M2 Asset Management, a Swedish investment company controlled by Rutger Arnhult, and the institutional investor and asset management firm Coeli. The new capital will be used for continued geographical expansion and accelerate the development of new products. Northmill aiming expand ten European markets by 2023.
Hikmet Ego, CEO and co-founder of Northmill Bank
We are happy to welcome such competent and experienced owners to our growing neobank. Our fantastic employees, long-term perspective, proven business model and our strong belief in technology as a driver, have created the conditions now enabling us to accelerate further. Our investors share our view that the bank of the future will be built by being receptive and developing products that really help customers improve their personal finances.
Rutger Arnhult, Chairman of the Board of M2 Assets Management AB
Northmill Bank is already a profitable company with a proven and sustainable business model, which stands out among today's tech investments. We have been following their journey for a while and have been impressed by the founders, as well as the company. The banking market is well on its way to change and the winners will be those who best can adapt to the new digital reality. For me, this is an investment in a tech company with long-term owners, who are just at the beginning of their journey. I see great growth potential in the bank.
Northmill Bank received a Swedish banking license in September 2019, and today offers savings, credits, payments and insurances. The neobank, which just launched its third savings account, plans to launch many exciting products during this year. Next up is an expansion to Norway with the product Reduce, which has already helped thousands of Swedes to lower their interest rates on part-payments, private loans and installments.
Plans for roll-out in the MENA and CEE regions are underway through a joint venture with global investment conglomerate Dubai Holding.
Strategic investment sets the stage for expanded future omnichannel merchant acquiring capabilities for European SMBs, value-added services and payments innovation.