The turnover of Fintech companies in Finland reaches EUR 1.3 billion. The fastest growing group are startups.
Finn fintech startup Puro Finance has grown by 700 percent in three years and remained profitable. It intends to continue to aim for growth, but unlike many other growth-minded companies, it has not raised capital from venture capitalists.
In fact, Puro is not found in the portfolio and CEO of any private equity investor Junno Roineen will not be found in the near future.
– At least we haven’t seen the need for this at the moment, Roine says.
According to Roine, venture capitalists have not been sought for two reasons: there has been no need for them and, on the other hand, they have wanted to keep the company in their own hands.
– A hard bet can be lost if you give control of the company to someone else too early.
Instead of private equity investors, Roine says the company has received money from partner and angel investors. Partnerships will continue to be sought.
– Developing a business requires money and we got our partners started. On the other hand, we also need money as a “raw material” because we finance companies. We have basically received it from the bank. We have not had a real private equity investor and we are an exception.
In addition, Puro’s personnel has become the company’s largest shareholder group, as the company’s employees have had the opportunity to invest in Puro in connection with the share issue.
– One third of the entire company is owned by the staff and every employee has had the opportunity to invest in Puro. It makes the staff commit to the company particularly well.
Pure is a financial technology company with a turnover of EUR 2 million, which offers invoice receivables financing services that can be integrated into financial management and banking software.
In practice, therefore, it helps companies from sending an invoice to finance, collection and accounting. So far, it only works in Finland, but the goal is internationalization, for which Finland is just a natural springboard.
– The goal was to establish a fintech company that combines traditional banking expertise with experienced veterans in the gaming industry in coding. Instead of games, we bring fast and flexible financing solutions without hidden costs, Roine opens.
Fintech is considered by experts to be a fast-growing industry and Roine also emphasizes that right now the focus is on increasing growth.
– We’re not going ahead. Now the most important thing is to grow.
In Finland there are about 200 fintech, or financial technology companies, the oldest of which have their roots in 1985. The youngest are startups, ie up to 5 years old. About half of them are fintech companies.
Finnish fintech companies have a total turnover of about 1.3 billion euros and the fastest growing group is startups.
According to a study conducted by KPMG and the Private Equity Association, the turnover of companies owned by private equity investors increases by an average of more than 50% every year during the first three years of ownership.
Companies like the creek without a private equity investor are an exception, but they are also fast-growing ones.
Source site www.is.fi