• Qonto, a French neobank that serves SMEs and freelancers, has announced its plans to acquire Penta, a German-based neobank aimed at startups and businesses, for an undisclosed amount, with the deal expected to close in the coming weeks.

• Through this transaction, Qonto seeks to become the market leader in Germany (the largest European SME banking market) and build on the expertise of both companies to accelerate growth across all markets. 

• At present, Qonto has ~250,000 customers across France, Germany, Italy, and Spain, while Penta has ~50,000 customers in Germany.

<ul><li> Analyst QuickTake: The acquisition of Penta follows the two funding rounds completed by Qonto in April and January 2022, raising a total of USD 557 million. The funds were to be directed toward product development, recruitment, customer acquisition, and geographical expansion. In addition, Qonto aims to reach 1 million clients by 2025, which could imply that more funds will be directed toward growth in existing and new markets via organic and inorganic means.</ul>