The Spanish bank is investing 400 million euros in the UK startup, specializing in foreign exchange and financing solutions for SMEs. It will hold 50.1% of the capital and integrate its offer in its international trade finance services.
Another fundraiser? Not quite. The giant Banco Santander is investing 350 million pounds, or about 405 million euros, in the startup of finance Ebury, which it will take control. At the end of the transaction, the Spanish group will hold 50.1% of the capital of Fintech, which raised $ 134 million since its consecration in 2009, in particular from Vitruvian Partners and 83North funds. Of the 400 million invested by Santander, the startup will receive about 80 million euros of new money " to support Ebury's projects in new markets in Latin America and Asia ."
Ebury, which has the status of e-money institution, currently operates in 19 countries, including European countries, where it offers its international payment and currency hedging services for SMEs and mid-market companies, to whom it promises to abolish borders. The company, which employs 900 people, processed 16.7 billion pounds of payments for its 43,000 customers in 2018 and has grown 40% annually over the past three years. It will continue to operate as an independent entity, led by the co-founders, and its solution will be integrated into Santander's Global Trade Services offering. She wants to establish other banking partnerships, including in France.
"SMEs are becoming increasingly international and Santander is the bank best placed to play a key role in helping them access international markets." By partnering with Ebury, Santander will provide SMEs with faster products and services and more efficient, which were previously accessible only to large companies "argues Ana Botìn, the Banco Santander Group Executive Chairman, quoted in the statement .
Big bank alliance and agile fintech
The Spanish group has more than 4 million SME clients including 200,000 working internationally. It claims one of the top 10 global volume buyers, dealing with 1.2 million traders worldwide.closevolume_off
"By combining a large bank and an agile fintech, we can offer our clients the best of both: they can benefit from our technology and a high quality service in complete safety, while being the counterparts of one of the the world's largest financial institutions, "said co-founders and co-CEOs Juan Lobato and Salvador Garcìa.
This important equity investment is part of Santander's digital strategy of accelerating growth through new alliances. The group announced last April its intention to invest 20 billion euros in the next four years in digital and technology. In particular, he emphasized the development of its international payments offering with the creation of a new international business platform for SMEs.