Qonto Hits 600,000 Customers, Seeks Banking License

French B2B fintech Qonto has officially applied for a European banking license after surpassing 600,000 customers and maintaining profitability since 2023, aiming to unlock direct lending capabilities and accelerate its product expansion across Europe.

Financial Independence and Strategic Acquisitions

Achieving profitability means Qonto can pursue this regulatory milestone without needing to raise additional capital beyond the $552 million it secured in 2022 at a $5 billion valuation. CEO Alexandre Prot recently said that the company would only consider raising new capital to fund a major, cash-based merger or acquisition.

Over its eight-year history, Qonto has completed two strategic acquisitions to fuel its growth: it absorbed its German competitor Penta in 2022, and acquired the accounting and financial automation platform Regate in 2024.

The acquisition of Regate highlights Qonto’s strategic evolution beyond basic business banking, positioning itself as a comprehensive finance management ecosystem that integrates invoicing, bookkeeping, and cash flow tools.

Scaling Across the European B2B Market

This all-in-one financial management approach has driven Qonto’s rapid expansion across the continent. While Prot did not provide a detailed breakdown of its 600,000 clients, he confirmed that Germany has grown to become Qonto’s largest market outside of France. Spain and Italy follow closely, ahead of the new markets it entered in late 2024: Austria, Belgium, the Netherlands, and Portugal.

Despite this rapid growth, Qonto recognizes that some potential business clients require the security of a fully licensed credit institution. Obtaining a banking license will provide these customers with stronger deposit guarantees and the assurance of direct credit options when needed.

Expanding Credit Limits and Partner Ecosystems

Qonto has already proven the strong demand for credit among its user base through its “Pay Later” service. Launched in 2024, the feature has already facilitated €50 million (approximately $59 million) in short-term financing. However, Qonto’s current regulatory status limits these transactions, forcing the company to lend strictly from its own equity and limiting customer loan terms to a maximum of 12 months.

To help clients access more diverse loan options, Qonto operates a dedicated “financing hub” in partnership with third-party fintechs, including Defacto, Karmen, RiverBank, and Silvr. Prot stated that Qonto plans to maintain this partner hub for several years to offer specialized financing products that fall outside of its core focus.

Boosting Revenue and Operational Autonomy

Transitioning into a credit institution will unlock significant new revenue streams for Qonto, generated from credit margins and the ability to reinvest customer deposits into lending activities. While Prot declined to share exact financial figures, he noted that Qonto’s revenue increased by 30% over the past year.

However, driving additional revenue is not the sole motivator. Qonto views the banking license as a way to increase operational independence and launch new products faster. To further reduce its reliance on third-party infrastructure, the fintech recently built and deployed an in-house card processor to improve transaction acceptance rates.

Preparing for Regulatory Approval and a Future IPO

With a global team of 1,600 employees, Qonto is currently scaling its operations to support new product developments, including “Qonto Intelligence,” an AI-enabled utility layer, while simultaneously expanding its core banking infrastructure and risk management teams.

Strengthening these internal controls is crucial for demonstrating regulatory readiness to France’s banking supervisor, with whom Qonto will work closely during the multi-year licensing process. This regulatory transition aligns with a broader corporate maturation strategy, which recently included adding several senior industry leaders to Qonto’s board of directors—steps that lay the groundwork for a potential long-term initial public offering (IPO).