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French fintech company Quant is in talks with investors about selling its existing shares, which could value the stake as much as 5 billion euros, as the company faces a downturn in public markets and is cutting back on employees and early backers. It’s the latest in a series of such deals that are about to be rewarded.
The neobank is considering selling at least 200 million euros of shares held by employees and early investors and is in talks with several funds, the people said.
Quant, already one of France’s most valuable technology companies, is seeking a valuation of around 5 billion euros. However, he cautioned that the price has not yet been determined and it is unclear whether an agreement will be reached.
Qonto was last valued at €4.4 billion in a 2022 funding round that raised €486 million from investors including Tiger Global, TCV, and Tencent. The company declined to comment on the latest stock offering.
The sale would make Qonto the latest fintech company to turn to the secondary market as the IPO market remains depressed and exits are difficult for founders and investors.
If the deal is successful, Quant would be one of the few European fintech companies to increase its valuation in recent years, after the sector was hit by rising interest rates and changing investor sentiment, and could raise its funding levels in 2021. This marks the end of a period of super-growth that pushed the country to record levels.
Revolut, Europe’s largest technology company, completed the sale of $500 million in employee stock in August, increasing its value from $33 billion to $45 billion. Other UK fintech companies Monzo and GoCardless are eyeing similar deals.
David Saintoff, partner at Global Founders Capital, said several European fintech companies have reached a more mature stage, scaled up and are looking to sell secondary sales as lenders benefit from rising interest rates. He said he was in a favorable position.
“Starting in 2021, many early employees recognized that opportunities for liquidity events would be limited and IPOs could be postponed,” Santeff said. “Successful companies will increasingly sell employee stock as they need to attract, retain and motivate top talent.”
Qonto was founded in 2016 by entrepreneurs Alexandre Prot and Steve Anavi with the goal of providing better financial services to other entrepreneurs.
We provide a range of services, including invoice management, to over 500,000 small and medium-sized businesses in France, Spain, Italy and Germany. The fintech does not have a banking license but provides credit through partnerships with other institutions.
Qonto’s growth has been driven by entrepreneurs, solopreneurs, and small businesses, but in recent years, Qonto has sought to acquire larger customers beyond just providing software services.
The group is also expanding into Europe, announcing earlier this year that it would also launch operations in Austria, Belgium, the Netherlands and Portugal.
