Sweden-based digital lender Northmill Bank has raised $30m in a new funding round to accelerate its geographical expansion and develop new products.
The funding round was led by M2 Asset Management, a Swedish investment company controlled by Rutger Arnhult, and asset management firm Coeli.
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As part of its expansion strategy, the challenger bank aims to have presence in ten European markets by 2023.
Founded in 2006, Northmill Bank has over 200,000 customers across three countries. Northmill started as a credit provider and received its full banking licence in September 2019 from Finansinspektionen (SFSA), the local financial regulator.
Northmill CEO and co-founder Hikmet Ego said: “We are happy to welcome such competent and experienced owners to our growing neobank.
“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.”
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By GlobalDataThis neo bank introduced zero-fee savings account in January last year and currently offers savings, credits, payments and insurances.
Talking about the new investment, M2 Assets Management chairman of the board Rutger Arnhult said: “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.”
Northmill says it is planning to expand into Norway with the Product ‘Reduce’, which is already successful in Sweden.
Hikmet added: “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. “
