German fintech company Solaris has raised €38 million ($41.8 million) as part of its Series F funding round. The company, which provides banking-as-a-service solutions to clients such as Samsung, American Express, and Coinbase, will use the funding to expand its embedded finance platform. Solaris offers a wide range of services, including banking and card services, payments, lending, ID verification, and digital currencies, through its 180 different APIs.
The funding round was an inside round, meaning that all the investors were existing backers. While Solaris did not disclose the total amount it aims to raise, the funding values the company at $1.6 billion, the same valuation it had in its previous funding round in 2021. Previous investors in the company include ABN AMRO, Visa, BBVA, Samsung, Lakestar, and FJ Labs.
Solaris has faced various challenges since its last funding round in 2021, including major leadership changes. Former CEO Roland Folz stepped down at the end of last year, and Carsten Höltkemeyer took over in April 2022. The company described 2022 as a testing year, as it generated €130 million in revenue but suffered a loss of €56 million. Solaris has been implementing cost-cutting measures and aims to achieve profitability.
Despite the challenges, Solaris remains focused on its strategy and aims to become a highly efficient and performance-driven company. It also plans to integrate Contis, a major embedded finance competitor it acquired with funds from its previous funding round in 2021. As part of its strategy, Solaris aims to simplify its operations and focus on its core products.
The funding landscape for fintech companies has changed, with global funding declining by 46% in 2022. However, Solaris’s latest funding round demonstrates investor confidence in the company’s potential. With the new funding and strategic focus, Solaris aims to continue its growth and deliver on its promise as a leading provider of embedded finance solutions.
