A Berlin based challenger bank for start-ups and businesses has raised over €2 million in seed money around one month after launching in Germany.
Penta provides a free bank account and faster services to small businesses who lack the people to run admin tasks, like account or expense management of their business efficiently.
Since the launch, the startup has proven to be attractive amongst the burgeoning Berlin startup scene as well as with small business owners in Germany. The investment was led by Inception Capital, a FinTech focused VC based in the UK.
Penta’s CEO and co-founder Lav Odorovic said, “Since our launch, we’ve received a fantastic endorsement for our proposition. It shows that Germany’s traditional banks are miserably failing to satisfy business owners and that our offering of a really easy to use business bank account is very attractive and useful.
“Start-up founders and business owners waste so much time and money dealing with annoying admin tasks. That’s why we’re offering the tools that can help you get business banking done in a fraction of the time.” Odorovic said.
Penta allows business owners to sign up for an account in a few minutes, whereas it could take up to several weeks at existing banks. There is no monthly fees and businesses will receive 10 free transactions a month. Every transaction after the 10th is €0.10 cents.
The company has a small working team of 20 people with intentions of doubling that number in the coming months. The funding will be used to hire more people to support their growing user base, to launch its marketplace of third party products like automated accounting, low-cost FX, and multiple MasterCards with limits and permissions.
Businesses that are registered in Germany can open a Penta account now.
Written and edited by Amy Murphy, Journalism student from DCU.