Tink Raises Major Funding for Open Banking Platform

By Thomas Price Saturday, January 2, 2021

As technology continues to progress, making people and institutions more interconnected than ever, many industries have had to adjust significantly for consumers. This is particularly true for the financial industry, which has in turn embraced open banking platforms. One of the major trends within open banking platforms is merging and joining up through APIs, or application programming interfaces. Swedish startup Tink is one of the leaders in this field with its own aggregation software and API. The startup has in turn exploded across Europe with significant growth in recent years as open banking platforms have risen in popularity. This has led to major funding for the startup, with many investors seeing strong potential. So, how does Tink work, what kind of funding has it received, and what can be expected from the startup moving forward?

What Is Tink?

Tink is a Sweden-based startup that focuses on aggregating banks and financial services through the use of an API to help these services and banks gain access to more users through new channels. Along with account aggregation, Tink offers a variety of other services, including account checks to confirm account ownership in real-time, payment initiation allowing secure payments and transfers for customers, data enrichment, and personal finance management. While the product Tink offers is not the most unique, with startups such as Unit and Plaid being major players in the same field, Tink’s astronomical growth and scope have made it stand out. In fact, Tink has a rather impressive list of statistics in this department.

As of 2020, the startup has integrated over 3,400 banks and institutions and had over 8,000 developers use the platform. Notable names among these banks and institutions include PayPal, NatWest, ABN AMRO, BNP Paribas, Nordea and SEB, among others. On top of this, Tink has reached over 250 million different customers across Europe, over 10 billion transactions every year, and is present in over 14 markets. Even in 2020, Tink found ways to thrive as the COVID-19 pandemic caused an economic downturn.

With so many financial institutions needing to find better ways to bring more services into the cloud and online, Tink found significant space for growth. In fact, co-founder and CEO of Tink, Daniel Kjellen, recently said, “2020 has seen payments powered by open banking take-off, and in 2021 we expect to see this scale – most prominently in the UK, followed by Europe.” This sentiment has caused many investors to be quite excited about the startup going into the most recent funding round.

Tink’s Most Recent Funding Round and Future Plans

In Tink’s most recent round of funding, the startup raised a whopping $103 million. The funding round was co-led by Eurazeo Growth and Dawn Capital. PayPal Ventures, HMI Capital, Heartcore, ABN AMRO Ventures, Poste Italiane, and Opera Tech Ventures also participated in the funding round. After this round of funding, Tink’s company valuation skyrocketed up to $825 million.

These massive numbers already show off the incredible value and power of Tink’s services; however, the startup has even larger plans for the future. The main plan is to simply use this major funding to solidify their presence across Europe by expanding their already large network of banks and financial services. This aggressive expansion could solidify Tink as the premiere open bank platform aggregator amongst a crowded field of solid players.

The financial industry is increasingly moving toward online services, which means that Tink could see considerable growth far down the line even after the pandemic ends, leading to an exciting future for the wickedly valuable startup.

Final Conclusions

Tink is offering a service that is without a doubt, in high demand within the financial world. Tink could easily dominate the entire continent in due time, given its stronghold on many already large European financial institutions and plans for further expansion. Adding to its success is the incredible funding the startup recently received and the even more monument valuation. With a genuine finger on the pulse of where the financial world is headed, its lengthy list of clients, and a clear quality to the services provided, Tink looks to have every tool at their disposal to reach unbelievable heights of success in the near future.

About the Author


Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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