Introduction: Barcelona-based fintech company ID Finance has successfully raised €150 million ($139.75 million) in an investment round led by i80 Group. This substantial capital injection, the largest in the group’s history, aims to fuel the growth and expansion of Plazo, the company’s flagship app functioning as a rewards system.
This influx of capital is slated to transform Plazo into a widely-used tool in Spain and beyond. Boris Batine, co-founder of ID Finance, emphasized that “this deal marks a turning point in our business journey and brings us closer to our goal of becoming the country’s favorite financial app. Our journey has only just begun.”
ID Finance’s Positive Performance: ID Finance has experienced a year of impressive results, boasting consolidated revenues of €180 million and a consolidated net profit of €7.1 million (up 13% from 2022). The Spanish division stands out as the company’s main profit driver, with new loan issuances reaching €266 million, revenues of €124 million, and a net profit of €12.5 million.
Understanding Plazo: Plazo is a mobile application available on iOS and Android platforms, offering a free virtual Mastercard debit card and an online account with a Spanish IBAN. Users can load money into the account, and with each purchase, they have the potential to receive up to a 25% cashback from various brands.
Functioning as a comprehensive financial management hub, Plazo enables users to monitor transactions, set savings goals, and maintain precise control over their finances.
How to Use Plazo: To start using Plazo, simply download the app, create an account, load funds onto the card using Apple Pay, Google Pay, a card, transfer, or Bizum, and make purchases with the virtual card at any Mastercard-accepting store. Physical cards are also available upon request, delivered to your address at no additional cost. Additionally, users can withdraw money from ATMs for free, make transfers, link the card to a Google Pay account, access exclusive offers and discounts, and obtain a flexible line of credit for any purpose.
Plazo is designed for global expansion, enabling international transactions and accepted at millions of locations worldwide. However, currency conversion fees may apply.
In terms of security, the app features biometric access, SSL certificates, TLS encryption, and the ability to quickly block the card in case of loss or theft.
Understanding Plazo’s Rewards System: Plazo offers various benefits for users making purchases. Users can receive 1% cashback on supermarket purchases, with a maximum refund of €10. Additionally, discounts of up to 20% are available on clothing, travel, and various eCommerce products, with rewards credited to their account.
Regarding financing, users can access different lines of credit ranging from €300 to €2,000.
Since its launch in 2021, Plazo has garnered over 190,000 users. The funding secured by ID Finance will expand credit capacity and introduce new features to the app, such as the recent partnership with Meeting Pros to provide free access to medical, legal, and veterinary consultations through the app.