Germany’s leading low-code banking platform provider underpins growth strategy
Frankfurt, November 23, 2021
fintus GmbH today announced a majority investment by AnaCap Financial Partners. AnaCap is one of the leading private equity investors in technology-enabled financial services. The London-based firm will provide significant growth capital and drive the pan-European expansion of the FinTech’s low-code banking platform, alongside CEO and founder Benjamin Hermanns and the forthcoming expanded management team.
As Hermanns explained: “We have had numerous inquiries recently and were delighted with the interest shown by prominent investment companies. It was important for us to find a partner who understands the financial industry and has a strong entrepreneurial mindset. We have found in AnaCap our ideal partner for the further pan-European growth of fintus. In the process, we benefited from the company’s gratifying development in recent years, which we can attribute to our employees and customers.”
In fiscal year 2021, we will report revenue growth of 150% year-on-year with an EBITDA margin around 40% and a high proportion of recurring Software-as-a-Service contracts. With AnaCap’s experience and support, we will continue our ambitious growth strategy and position fintus as a pan-European company. Our customers are using our platform to strengthen their new business, and to optimize their margin situation and processes with dynamic pricing. In addition, they are implementing a digital banking workplace and sustainably reducing their personnel expenses.”
Since the company was founded in 2017, fintus has successfully positioned itself as a provider of the software-as-a-service (SaaS) platform for the automation and transformation of financial service providers and banks. Founded in the heart of the financial metropolis of Frankfurt and without the support of financial investors, fintus was able to win big-name customers early on. Today, the company’s customers already include a double-digit number of TIER 1-3 banks in Germany.
The fintus platform manages processes across the entire banking lifecycle – from initial contact with customers to credit decisions and portfolio management. The central digital banking workplace maps all products, from account opening to the financing of complex commercial loan commitments. This top-class product and customer portfolio is the basis for fintus’ growth both in new business areas and its international expansion.
The fintus technology complements existing, often monolithic core banking systems and enables fintus customers to use the low-code platform in an agile manner to position themselves in relation to retail and commercial customers. The easy management and customization of processes, the software interfaces and the integration of all available bank information and data into a single platform – as well as towards the banking user within a single software interface – are all key innovations.
With low-code banking, banks are able to react to changes within days instead of having to rely on long software development cycles. To deploy the fintus platform, the company relies on renowned partners such as Accenture, Bearingpoint, SKS and other specialized implementation partners and consultancies from the financial industry.
Experienced financial investor with a track record in Germany
The DACH region is well known to AnaCap with the investment in fintus following the recently completed acquisition of WebID Solutions in September of this year, another FinTech company providing leading digital identification solutions to blue-chip German corporates and financial institutions, and an existing technology partner of fintus. These recent acquisitions follow the already successful trajectory of another portfolio company MRH Trowe (“MRHT”), with eleven bolt-on growth acquisitions made to date as part of an accelerated buy-and-build strategy in the large and fragmented German corporate insurance broking market. AnaCap will further leverage its experience from its highly successful buy-and-build strategy for payments company heidelpay (now “Unzer”) across the region and subsequent successful exit to KKR.
Tassilo Arnhold, Private Equity Partner at AnaCap, added: “We are delighted to be partnering up with Ben and the team to help drive the next chapter of fintus’ exciting growth story – since its inception in 2017, fintus has managed to win an impressive list of blue-chip SaaS clients, leading to a triple digit annual growth historically. While there is significant room to grow in the DACH market, we also see huge potential in scaling the business across Europe, given the multi-lingual and low code nature of the fintus software. We will invest significant capital to build-out the management and business development team further, while also introducing new distribution channels and exploring opportunistic buy-and-build strategies as well, in line with our other successful DACH investments.”
On this transaction, fintus’ shareholders were exclusively advised by IEG – Investment Banking Group (corporate finance) and act AC Tischendorf (legal), whereas AnaCap received advice from GCA Altium (corporate finance), Proskauer Rose (legal advice – London) and Norton Rose Fulbright (legal advice – Munich). The transaction is subject to the usual closing conditions.
AnaCap Financial Partners
AnaCap is a leading specialist mid-market private investor focused on tech-enabled financial services.
Since 2005 the firm has raised €5.2 billion in gross AUM across its platform which includes PE and Credit strategies, and completed over 100 primary investments across its strategies in 16 European jurisdictions and India. We operate out of 7 offices in London, Luxembourg, New Delhi, Mumbai, Milan, Madrid and Lisbon.
Our name, AnaCap, defines our investment approach: ‘Analytics before Capital’. Our investment decisions are founded on a disciplined, operational and data-driven investment approach with support from Minerva, our digital proprietary intelligence platform.
Leveraging our deep expertise as Financial Sector investors, owners and operators, we are an active investor and generate value in Private Equity through our intense operational engagement model and carefully calibrated M&A programmes. Similarly, in both our Credit and Real Estate strategies, we combine specialised in-house investment expertise with an active asset management approach focused on working with best-in-class servicing and operating partners tailored to each investment, using data intelligently throughout the entire investment life cycle.