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Singapore start-up Nium seeks as much as $400 million in offers to tackle Europe's crowded fintech market

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Europe’s fintech sector is fiercely aggressive, with privately-held start-ups price tens of billions of {dollars} vying to steal market share from incumbent banks.

Oscar Wong | Moment | Getty Images

LONDON — Nium, a $2 billion digital funds start-up based mostly out of Singapore, has massive plans for its European enterprise.

The firm, whose software program helps companies handle flows of cash throughout borders, is in talks to make an acquisition price as much as $400 million to drive an enlargement within the continent, CEO and co-founder Prajit Nanu informed CNBC.

“Europe is a very big business for us,” Nanu, who’s now based mostly in San Francisco, mentioned in an interview in London. The agency is in discussions to purchase an enterprise-focused funds enterprise price “anything between $20 million to $400 million,” he added.

Out of its 1,000-person international workforce, Nium at the moment has about 150 staff based mostly in Europe, and plans to rent a further 100 over the subsequent 12 months, Nanu mentioned.

The firm is on monitor to generate round $150 million in annual international revenues this yr, with between $80 million and $90 million of gross sales coming from Europe, based on Nium’s CEO.

It’s a comparatively little-known identify on the earth of fintech, however Nium is rising quick. The firm lately reached a $2 billion valuation and has attracted some notable buyers, together with Visa and Singapore’s state funding agency Temasek.

The start-up competes with each banking incumbents in addition to different fintech corporations, like Britain’s Wise and Australia’s Airwallex. It counts fellow fintechs Currencycloud — which was purchased by Visa final yr — and Transfergo as shoppers.

Crowded market

Europe’s fintech sector is fiercely aggressive, with privately-held start-ups price tens of billions of {dollars} vying to steal market share from incumbent banks. Klarna, the purchase now, pay later fintech, was final valued at $46 billion, whereas fee corporations Checkout.com and Revolut are actually price $40 billion and $33 billion, respectively.

But Nium’s CEO is betting there’s loads of room for start-ups like his, which focuses on dealing with funds for companies moderately than customers.

Nium’s European division accelerated over the previous yr, thanks partly to the acquisition of Ixaris, a London-based agency that points digital fee playing cards for the journey business. The deal was fortuitously timed, Nanu says.

“We had the audacity to buy a travel payment company before vaccines even became a thing,” he mentioned, including Nium gave Ixaris a time period sheet way back to January 2021. The first Covid-19 shot was administered within the U.Ok. in December 2020.

When deal talks started, Ixaris was processing £15 million ($18.8 million) in transaction quantity and making £100,000 in income, Nanu mentioned. Fast ahead to March 2022 and the corporate is now doing £400 million in quantity and just below £6 million of income, he added.

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