Azimo
Michael Kent cofounder and chairman of Azimo
- UK-based fintech Azimo has brought in 20 million euros ($22 million) from the European Investment Bank (EIB) as part of a venture debt facility.
- The EIB approached Azimo about the money which was raised to support the startup's growth in Europe and especially at its facility in Poland.
- Azimo, which claims to be profitable, is part of a pack of leading fintechs targetting the $700 billion remittances market.
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London-based fintech startup Azimo has raised a €20 million ($22 million) venture debt facility from the European Investment Bank (EIB) to continue its growth in Europe.
Azimo, which provides money transfer services to customers, was approached by the EIB in early 2019 about a prospective deal which subsequently closed before Christmas last year.
The company, which claimed to be profitable last August, is part of a pack of leading fintechs targetting the global remittances market which could be worth $700 billion by 2021, according to the World Bank. Founded in 2012, Azimo has previously raised $66 million from investors and has offices in London and Krakow, Poland.
"Working with the EIB really aligns with our aim to build West Coast tech infrastructure in Eastern Europe," Azimo's cofounder and chairman Michael Kent told Business Insider in an interview. "It was a long process but this debt funding helps us move fast in key European markets like Germany and France."
The EIB is an odd choice for fintechs but while the lender is more regularly associated with large project finance deals it has provided venture debt to other European fintechs in the past, including Qonto, N26, and iZettle.
The financing is supported by the European Fund for Strategic Investments (EFSI), the financial pillar of the Investment Plan for Europe, effectively the European Union's investment arm.
Importantly, the EIB's funding costs are about as low as they get meaning that Azimo's venture debt is a bit of a free hit for the company with Kent calling the debt "well priced." Azimo transfers money across more than 200 countries for its reported two million customers and has previously been backed by investors including Rakuten, eVentures, Greycroft, and Frog Capital.
Some 130 of Azimo's employees are based in Poland making the company's growth there imperative for its continued growth in the region despite Brexit having formally occurred on January 31st. Azimo holds an e-money license in The Netherlands which helps the company's international team stay aligned.
"Working in one place but putting your money to work in another is a common feature of our time," said Lilyana Pavlova, Vice-President of the EIB. "They [Azimo] are a game changer - not only for the market, but first and foremost for the people who, thanks to them, save money and time."