Sweden-based digital bank Northmill raises $30M


Northmill Bank

Northmill Bank is a challenger based in Sweden that has approximately 200,000 customers in three European countries. It has raised $30 million.

Leading the round is M2 Asset Management, a Swedish investment company run by Rutger Arkhult and Coeli. The cash injection will be used to expand geographically and accelerate the development of new products. This will include plans for Northmill to launch new products in 10 markets. Next stop: Norway.

Northmill, a 2006-founded bank, is currently available in Sweden and Norway. It competes with established banks with physical branches, such as Lunar, Revolut, Klarna, and other incumbent banks. Klarna operates in Sweden and Germany.

Another competitor is Anyfin. This product is very similar to Northmill’s “Reduce” product. It promises to help customers consolidate existing loans and credit and lower their interest payments. A Northmill spokesperson says that Reduce is our fastest-growing product and the main driver of today’s growth. It lowers people’s interest on existing credit, part-payments, and credit cards.

Northmill was founded almost 15 years ago. Originally operating as a credit provider, in 2019, Northmill received a full banking license. It is regulated by the Swedish Financial Supervisory Authority. The bank has 150 employees and offers insurance, savings, credit, and payments. It claims to be profitable and has resisted investment from the beginning.

Rutger Arnhult (chairman of M2 Assets Management’s board): “Northmill Bank has a proven business model that is sustainable and profitable, which makes it stand out among the tech investments of today.” We’ve been following the journey of the founders for some time and have been impressed with their company as well. The banking market is changing rapidly, and those best able to adapt to this new reality will win. This is an investment in a technology company with long-term shareholders who are only at the beginning stages of their journey. The bank has great potential for growth.

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