German Virtual Bank Penta Aims for $500M Valuation

German digital business banking platform Penta is speaking with potential investors as it seeks a valuation of between $453 million and $567 million (400 million to 500 million euros).

As Bloomberg reported Wednesday (Feb. 23), sources close to the matter say Penta, which provides small businesses with bank accounts and other financial services, has begun its third funding round with the goal of making it halfway to the $1 billion mark.

The sources say Penta is in discussions with new and current investors, with the hope of finalizing negotiations by midyear. Bloomberg notes the expected valuation shows demand for FinTechs among investors has not waned despite steep declines in Europe’s equity markets.

Read more: Penta Lands $20M For Corporate Banking Tech

Two years ago, Penta raised $20 million in a funding round led by RTP Global. Later in 2020, the company began offering customers the ability to digitally manage accounting and receipts through a partnership with Germany-based DATEV Marketplace.

Germany was home to the second-largest number of new unicorns last year, 23 compared to the 29 British firms that broke the $1 billion barrier.

See also: The 100 Unicorns Born in EMEA in 2021

Penta — unlike a lot of startups of its ilk — does not offer service for free, choosing instead to require subscriptions from each new client.

Led by former Deutsche Bank AG executive Markus Pertlwiese, Penta’s investors include Dutch bank ABN Amro Bank NV and the startup fund of the publishing holding company Holtzbrinck. Bloomberg said the companies declined to comment on the valuation discussion.