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SpeedInvest Startup Friday Finance Out Of Business, Selling Parts To Competitor Pliant!

Friday Finance, originally known as Airbank, aimed to revolutionize the financial processes of SMEs through a multi-banking solution. Despite securing significant funding and having ambitious expansion strategies, the fintech has unexpectedly ceased its operations. Notably, parts of its business are now being acquired by Pliant, as per FinanceFWD. This move isn't described as a distress sale and isn't attributed to any financial hardships faced by Friday Finance.
German Fintech Friday Finance closed down

Transaction Details

Founders of Friday Finance, Patrick de Castro Neuhaus and Christopher Zemina, have opted to sell their venture to Pliant, a more established competitor. Both founders are set to assume managerial roles at Pliant, with a significant portion of the Friday Finance workforce expected to transition as well. The decision comes as Friday Finance grapples with a challenging market landscape, characterized by inflation, escalating costs, and elevated interest rates, impacting its primary clientele.

Post-acquisition, the Friday Finance brand will be phased out. Pliant intends to refine the extensive product suite of Friday Finance, emphasizing corporate credit cards. The acquisition deal reportedly valued Friday Finance at slightly above €100 million, with investors receiving a combination of cash and Pliant shares.

Financial Health

Friday Finance had successfully raised over €27 million from prominent investors such as Molten Ventures, New Wave, SpeedInvest, Another VC, and Entrepreneur First. The platform’s unique proposition was its ability to integrate with existing bank accounts without transforming into a bank itself.

Contrary to the notion of a “fire sale”, Friday Finance is believed to retain nearly €15 million in cash reserves. Last year, Zemina had announced robust growth trajectories, securing $19 million in a Series A funding round. However, the recent deactivation of the Friday Finance website raises questions about the nature of the sale.

Pliant's Position

Pliant has demonstrated resilience, enhancing its valuation amidst challenging market dynamics. In February, the Berlin-based fintech secured approximately €26 million in a funding round. This Series A round witnessed participation from SBI Investment, Alstin, and MS&AD Ventures.

FinTech Market Outlook

The fintech sector is poised for further consolidation. Acquiring competitors selectively will likely emerge as a pivotal strategy for prominent fintech entities in the forthcoming 18 months.

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For those with insider knowledge about Friday Finance, Pliant, or other fintech players, we encourage sharing insights via our whistleblower platform, Whistle42.

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