Solaris reportedly struggling to raise funds to fulfil a major credit card deal – FT
German Banking-as-a-Service (BaaS) fintech Solaris is reportedly struggling to raise new funding, casting doubts over its ability to deliver on a major credit card contract, according to a Financial Times report.
Solaris is reportedly struggling to raise new funds
Last year, Solaris landed a 10-year contract with Munich-based automobile association ADAC to help it issue ADAC-branded credit cards to its 21-million-strong membership. The association, one of Europe’s largest, has already distributed around 1.3 million credit cards.
According to the Financial Times, Solaris had expected the new deal to increase its annual sales by more than €100 million. However, in the latest development, sources tell the FT that ADAC has now approached potential new credit card partners as Solaris is taking longer than expected to secure the funding needed.
The report adds that Solaris is looking to raise €100 million in order to make a payment to ADAC, as well as to meet the necessary regulatory requirements for the project.
The funds it is currently seeking is reportedly separate from the €38 million it raised from existing investors as part of its Series F round in July. The company had stated that it would use that money to strengthen its governance and compliance.
Sources further disclose to the FT that fundraising talks between Solaris and existing investors including Visa and BBVA are currently ongoing but have been hampered by the tough macroeconomic environment and global slowdown in investment activity.
Founded in 2015, Berlin-based Solaris enables businesses, including non-financial companies and fintechs, to offer financial services to their customers via API integrations. In December 2022, the company refreshed its management board in a push to “stay ahead of the curve, maintain our growth and become profitable at the same time”.
