Swedish neobank Northmill raises $30m to power European expansion

Stockholm-based challenger Northmill Bank has raised $30 million through an investment round led by M2 Asset Management and Coeli.

Northmill Bank received a Swedish banking licence in September 2019. It offers savings, credit, payments and insurance.

It claims to have around 200,000 customers across three European countries: Sweden, Norway, and Finland.

Northmill has recently launched its third savings account and plans to bring new options to market in 2021.

To that end, its new capital goes towards “continued geographical expansion” and the development of new products.

“We are happy to welcome such competent and experienced owners to our growing neobank,” says Hikmet Ego, CEO and co-founder.

Ego cites “fantastic employees, long-term perspective, proven business model and strong belief in technology” as reasons for growth.

“Our investors share our view that the bank of the future will be built by being receptive and developing products that really help customers improve their personal finances.”

Northmill has conducted notably few public funding rounds since its 2006 launch. It claims to have been profitable since its early days.

“Northmill Bank is already a profitable company with a proven and sustainable business model,” says M2 chairman, Rutger Arnhult.

“We have been following their journey for a while and have been impressed by the founders, as well as the company.

“The banking market is well on its way to change and the winners will be those who best can adapt to the new digital reality.”