Sonect developing a fintech app that enables every store to be an ATM secures EUR 4 million to enter the Italian market
25.10.2021
The Zurich-based startup Sonect partners with an Italian bank and a commercial network. A EUR 4.65 million round led by Italian Angels for Growth (IAG) with contribution from foreign investors and family offices will facilitate the Sonect app to enter the Italian market by the end of this year.
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Sonect is a fintech startup offering a cash pickup service at affiliated retailers, allowing any store to become a cash pickup point. The solution provides customers with access to cash at any time and enables merchants to offer new services. On the other hand, banks can reduce the cost of cash management and guarantee proximity services even in the absence of physical tellers.
Almost 70 investors, including business angels from Italian Angels for Growth (IAG), the Doorway community – a leading firm in equity investing for the professional and qualified investor market – foreign investors and family offices participated in Sonect's financing round resulting in EUR 4.65 million.
Three years since its establishment, Sonect has become the largest ATM network in Switzerland. Since joining the TWINT platform this May, the startup gained access to over 3,000,000 potential customers, resulting in a 600% increase in users and a 1,000% increase in transactions in just five months.
Building on this success, Sonect is kicking off its international expansion. The service will become operational in Italy thanks to a partnership agreement with a leading Italian bank by this year. The banking partner will be responsible for the onboarding of merchants, the promotional campaign with merchants, and the promotion of the service to 1,200,000 customers who currently use the mobile banking app. A further agreement has been signed with a commercial network that brings in an additional 34,000 merchants in Italy from which customers will be able to make withdrawals.
Expansion into Europe and South America is in the company's plans. In 2020, in Europe alone, recorded 7.4 billion withdrawal operations and in Italy, 900 million; these are very significant figures, as it would already be enough for Sonect to be used for 2% of the total market value to guarantee extremely interesting profitability.
Sonect was ranked among the TOP 100 Swiss Startups Award from 2018 to 2021, won Venture Kick first stage in 2016 and participated in Venture Leaders Fintech in 2017
Almost 70 investors, including business angels from Italian Angels for Growth (IAG), the Doorway community – a leading firm in equity investing for the professional and qualified investor market – foreign investors and family offices participated in Sonect's financing round resulting in EUR 4.65 million.
Three years since its establishment, Sonect has become the largest ATM network in Switzerland. Since joining the TWINT platform this May, the startup gained access to over 3,000,000 potential customers, resulting in a 600% increase in users and a 1,000% increase in transactions in just five months.Building on this success, Sonect is kicking off its international expansion. The service will become operational in Italy thanks to a partnership agreement with a leading Italian bank by this year. The banking partner will be responsible for the onboarding of merchants, the promotional campaign with merchants, and the promotion of the service to 1,200,000 customers who currently use the mobile banking app. A further agreement has been signed with a commercial network that brings in an additional 34,000 merchants in Italy from which customers will be able to make withdrawals.
Expansion into Europe and South America is in the company's plans. In 2020, in Europe alone, recorded 7.4 billion withdrawal operations and in Italy, 900 million; these are very significant figures, as it would already be enough for Sonect to be used for 2% of the total market value to guarantee extremely interesting profitability.
Sonect was ranked among the TOP 100 Swiss Startups Award from 2018 to 2021, won Venture Kick first stage in 2016 and participated in Venture Leaders Fintech in 2017