Spain is a key market for the company Qonto, specialized in digital finance for SMEs. It is one of the largest unicorn companies in France, having a valuation of more than €1 billion, in fact, it is four times higher. The startup landed in the country four years ago and in 2021 opened an international hub in Barcelona. Alexandre Prot, co-founder and CEO, visits the city on the occasion of his fourth anniversary in the country.
How do you assess the evolution of these years?
Very good, but I cannot reveal the business figures in the country, nor on a global scale. In any case, we are growing at double digits and with the goal of being profitable in 2025. We are also going to reinforce our commitment to Barcelona.
In what sense?
When we raised 468 million in an investment round at the beginning of 2022, we made the commitment to invest 100 million euros in the Spanish market. The objective is to gain new clients and acquire competing companies in the fintech sector in Barcelona and Madrid.
Can you specify the budget that you are going to allocate to these acquisitions?
It is not yet set, but the purchase price of each company can range from 10 to 100 million euros depending on the size of the business. Last year, we acquired the German group Qonto.
Are the resources also going to be allocated to the Barcelona offices?
Of course, we are going to continue hiring workers, at least 20 people before the end of the year. Unlike other technology startups, Qonto has not applied any workforce cuts. Currently, the Spanish team, concentrated in the Catalan capital, is 140 people, out of a total of 1,300 people.
Why did you choose Barcelona?
Because of the proximity to France, the availability of international talent, the ecosystem of technology companies and also because of Carles Marcos, the first Qonto employee in Spain, who is now the country's general director.
It is strange that, being a fintech company, Qonto did not choose Madrid, where these types of companies are concentrated due to the presence of large institutions and financial entities.
The fact of being further away from the Spanish capital does not affect our business at all. We carry out all customer service remotely, so location does not matter. Furthermore, we are interested in technological profiles and these are easier to find in Barcelona.
What activities take place in the city?
Technological product development, commercial sales to clients in the Spanish market and, above all, customer service operations services on a global scale. Barcelona is a hub in this area, as are the centers of Paris and Belgrade.
What other countries does Qonto serve?
The main market is France and then followed by Germany and Italy, countries that entered at the same time as Spain.
Do you plan to enter new markets?
Not for the moment. We have a journey wherever we operate. Adding the four countries, we have calculated that there are 15 million SMEs that could be potential clients. Now we have 400,000, so we have a lot of margin. In three years, we want to reach one million.
What type of companies do they work for?
Very varied. I could say that professionals from the fields of technology, design, architecture or law stand out. They can now be self-employed professionals as entrepreneurs of a medium-sized company.
SMEs are often in a more vulnerable position than others, especially now that interest rates and inflation have risen. What impact has it had on the business?
None. The situation does not worry us at all. We have not registered a significant increase in bankruptcies of our clients and the portfolio is growing month by month. There were fears of a recession and it has not come. Of course everything can change.
Why is the focus on these types of companies?
When Steve Anavi and I founded Qonto, we thought that SMEs needed to streamline the management of their finances, both in payments and administration. And over the years we see that the need is real. Additionally, we are specializing in working with start-up companies.
Do they have a banking license?
In France we do have one and in Spain, being a country in the European Union, we can operate through a local brand that allows us to offer our clients a Spanish IBAN.
What type of services do you offer?
Since the beginning in 2017, payments have been our main business, to which we have been adding billing services and financial services through collaborations with local companies.
