Berlin Fintech Penta Is Seeking Valuation Above $450 Million

(Bloomberg) -- The German start-up Penta Fintech GmbH, led by former Deutsche Bank AG executive Markus Pertlwieser, is seeking a valuation of between 400 million and 500 million euros ($453 million to $567 million) as it holds talks with potential investors despite a difficult market environment, according to people familiar with the matter.

Penta, which offers online bank accounts and related financial services to small businesses, has kicked off its third founding round and expects to come close to a valuation that would put it about halfway to the $1 billion threshold denoting a “unicorn,” the people said. 

The company is in talks with existing and new investors and seeks to finalize the negotiations by the middle of the year, they said asking not to be identified discussing the private information.

The expected valuation is a sign that investor demand for fintechs continues despite heavy declines across European equity markets as central banks roll back monetary easing and the tensions with Russia weigh on sentiment. A string of German fintech companies, largely headquartered in the country’s capital Berlin, broke through the $1 billion threshold last year indicating a thriving scene of founders and backers.

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Unlike many other technology startups, Penta doesn’t offer any of its services for free and instead requires every new client to take out a paid subscription, with the cheapest service starting at 9 euros per month, according to its website. Existing investors include the Dutch bank ABN Amro Bank NV and the startup fund of the publishing holding company Holtzbrinck.

A spokesman for Penta declined to comment.

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