Qonto, a Paris-based business banking startup, is bucking the trend of VC funding challenges by acquiring Regate, an accounting and financial automation platform, using a portion of its cash reserve.
Originally focused on online business accounts with debit cards, Qonto has expanded its product offerings to include invoicing tools, expense management features, and integrations with the fintech ecosystem. With over 450,000 companies using Qonto, the company has expanded beyond its main market in France to Germany, Italy, and Spain.
In 2022, Qonto raised a €486 million Series D funding round and is now aiming to provide a comprehensive finance solution for small and medium businesses. As part of this goal, Qonto acquired Regate, an accounting automation SaaS startup with a strong customer base and direct integration with popular accounting software platforms.
With Regate’s acquisition, 100 employees will join Qonto’s team, forming a new business unit focused on financial tools for accountants. Integration between the platforms will enhance accounting automation features, and accounting firms will serve as a new sales channel for Qonto.
Future Acquisitions
While Regate’s acquisition is the second in Qonto’s history, it likely won’t be the last as the company sees opportunities for strategic growth. Qonto’s executives are open to further acquisitions or partnerships to enhance their offering and remain competitive in the market.
Unlike some of its counterparts, Qonto attributes its success to a healthy business model, profitability of customers, and a well-timed fundraising round. With a strong financial position, Qonto is in a position to lead consolidation in the fintech space amidst challenging funding environments for startups.
