Last year, the French startup Qonto acquired its German competitor Penta. Both companies offer bank accounts to small and medium-sized businesses as well as the self-employed. Today, Qonto shared some details about the onboarding process.
At the time of the acquisition, Penta served 50,000 businesses in Germany while Qonto had 300,000 customers in France, Spain, Italy and Germany. While Penta is no longer accepting new customers, new German companies looking for a bank account can register directly with Qonto.
As for existing customers, Qonto now plans to transfer all Penta customers to Qonto’s banking platform by the end of 2023. Once this is done, the company will operate under one brand – Qonto.
Likewise, there are some internal changes. The Qonto and Penta teams will merge with Penta co-founder Lukas Zörner as the new VP Germany for Qonto. And suddenly, Qonto will add tens of thousands of customers to its platform.
“Germany has been Qonto’s fastest growing market in 2021 and 2022 and we will continue to do so in 2023. The union of Qonto and Penta is the start of a new era of consolidation in the European fintech industry. By integrating Penta, we are combining the strengths of two companies to strengthen Qonto’s position as the leader in financing the digital businesses that European SMEs and freelancers expect and need,” said the co-founder and CEO of Qonto, Alexandre Prot, in a statement.
So if you are a Penta customer, keep an eye on your mailbox because you will soon receive an invitation to migrate your account to Qonto. Customers will always have a German IBAN. Qonto also offers virtual and physical corporate cards, multiple ways to export and sync your bank statements with your accounting solution (including Datev support), instant SEPA transfers and more.
As for pricing, freelancers should pay more or less the same subscription fees as the Penta and Qonto plans starting at €9 per month. Larger companies with multiple users might end up paying more, as Penta’s enterprise plan offered 15 cards for €49 per month. Companies with the cheapest Qonto plan (€29 per month) must pay an additional €5 per card per month to obtain more than two cards.
In January 2022, Qonto announced a huge Series D funding round of €486 million ($522 million at today’s exchange rate). It was a different time for the tech industry because there are far fewer late cycles.
This acquisition is probably the first in a long series of fintech acquisitions. There will be more consolidation moves in the fintech industry in 2023 due to the current downturn in venture capital funding and overly aggressive expansion plans in 2021 and early 2022.