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Solarisbank is Exploring All Options From Fundraising to a Sale to a PE Fund — Founder Interview

Updated: Apr 30

Brandenburger Tor in Berlin via Pixabay

What Is This About?

Solarisbank, the Berlin-based banking-as-a-service platform, is exploring all options from raising new capital to a potential sale to a private equity fund. Driven by deteriorating market conditions for privately held tech companies, the move highlights the funding pressure facing even major German fintechs.

  • This blog post first appeared first on old medium publication (https://medium.

  • According to a recent German press report, Solaris Bank is currently in fundraising mode.

  • They are driven to this decision by the current market conditions for privately held tech companies.

  • Ramin Niroumand (chairman of the supervisory board and with FinLeap a large shareholder) has been approached by multiple PE funds.

  • CVC reportedly already lost interest, but Advent is still interested.


Brandenburger Tor in Berlin via Pixabay

New Blog


In this episode of Startuprad.io, host Jörn "Joe" Menninger sits down with the founder of Solarisbank to explore how this DACH-based startup is tackling real market challenges. From early-stage hustle to scaling strategy, this founder interview dives deep into what it takes to build a startup in the German-speaking ecosystem.

This blog post first appeared first on old medium publication (https://medium.com/startuprad-io), and was moved to this blog with the relaunch of our website in summer 2024.


According to a recent German press report, Solaris Bank is currently in fundraising mode. The fundraising is no surprise since this was expected and widely known after they raised 190 m € in July 2021, valuing the bank at 1.4 bn Euros. What is new is the information that Solaris also considers selling a “large stake”, maybe even the whole company to a private equity fund.


They are driven to this decision by the current market conditions for privately held tech companies. The money raised in their funding in July 2021 was mostly used to buy their UK competitor Contis. The fundraising environment Solaris is facing is increasingly challenging. The end of the SPAC boom took out another option to list on public markets the fast way. So they are left with a lofty valuation they would need to defend in raising more money with VCs and a SPAC deal is not realistic in the current state of public markets. So they are turning to one of the few options left, Private Equity.


Ramin Niroumand (chairman of the supervisory board and with FinLeap a large shareholder) has been approached by multiple PE funds.


CVC reportedly already lost interest, but Advent is still interested. Advent has also announced in May that they have raised a 25 bn US$ fund. Advent is also with Aareal already the owner of a bank in Germany.


The real incentives for a private equity fund to buy a cash-burning tech company are not yet clear, but Solaris is reportedly interested if the price is right.


We will keep you updated on our news. You can find options to subscribe to our news-only sub-podcast “Startup News Germany, Austria, and Switzerland — by Startuprad.io” here or search for us in your favorite podcasting app.




What Is Happening with Solarisbank?

Solarisbank, Berlin's banking-as-a-service platform, was exploring all options from fundraising to a sale to a PE fund amid challenging market conditions. Ramin Niroumand, chairman of the supervisory board and a major shareholder through FinLeap, was appointed to navigate the process. CVC reportedly lost interest while Advent remained in discussions.

Introduction

This episode covers the strategic crossroads facing Solarisbank, Berlin's leading banking-as-a-service infrastructure provider. According to German press reports, Solarisbank was actively exploring options ranging from a new fundraising round to a potential sale to a private equity fund. The deteriorating market conditions for privately held tech companies were driving the urgency. Ramin Niroumand, chairman of the supervisory board and a significant shareholder through FinLeap, was leading the process. CVC had reportedly pulled out of discussions while Advent International remained interested.

Solarisbank found itself at a critical juncture as market conditions for private tech companies deteriorated. The banking-as-a-service provider was exploring the full range of strategic options from additional fundraising to a PE fund sale. Ramin Niroumand, who serves as chairman of the supervisory board and holds a significant stake through FinLeap, was leading the effort. The competitive dynamic among PE buyers was shifting, with CVC reportedly stepping back while Advent remained engaged. The situation reflected broader challenges facing well-funded European fintech infrastructure companies in 2022.

  • Solarisbank was exploring all options from fundraising to a potential sale to a private equity fund.

  • Ramin Niroumand, chairman of the supervisory board and FinLeap shareholder, was appointed to lead the process.

  • CVC reportedly lost interest in the deal while Advent International remained in discussions.

  • The strategic review was driven by challenging market conditions for privately held tech companies in 2022.

Entities Referenced in This Episode

Companies

  • Solarisbank — Berlin-based banking-as-a-service platform, exploring strategic options

  • FinLeap — Major shareholder in Solarisbank

  • CVC — PE firm, reportedly lost interest

  • Advent International — PE firm, still interested

People

  • Ramin Niroumand — Chairman of Solarisbank supervisory board, FinLeap connection

  • Jörn "Joe" Menninger — Startuprad.io host

Topics

  • Banking as a service, fintech infrastructure, PE acquisition, fundraising challenges, fintech M&A

Relationship Map

  • Solarisbank → exploring → fundraising to PE sale options

  • Ramin Niroumand → chairman of → Solarisbank supervisory board

  • FinLeap → major shareholder in → Solarisbank

  • CVC → lost interest; Advent → still interested

Quote Highlights

  • On the situation: Solarisbank, the Berlin-based banking-as-a-service platform, is exploring all options from raising new capital to a potential sale to a private equity fund.

  • On market conditions: Deteriorating market conditions for privately held tech companies are driving Solarisbank to consider these strategic options.

  • On prior funding: The money raised in their July 2021 funding round was mostly used to acquire UK competitor Contis.

  • On the business: Solarisbank provides banking-as-a-service infrastructure, enabling other companies to offer financial products through its platform.

Related Episodes on Startuprad.io

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What is Solarisbank?

Solarisbank is a Berlin-based banking-as-a-service (BaaS) platform that provides regulated banking infrastructure through APIs. It enables fintech companies and other businesses to offer banking products without building their own banking license and infrastructure.

Who is Ramin Niroumand?

Ramin Niroumand serves as chairman of Solarisbank's supervisory board and holds a significant stake through FinLeap, a Berlin-based fintech company builder. He was appointed to lead the strategic review process.

What is banking as a service?

Banking as a service (BaaS) allows non-bank companies to offer banking products like accounts, payments, and lending through API integrations with licensed banking platforms like Solarisbank. This enables fintechs to launch financial products without obtaining their own banking license.

About the Host

Joern "Joe" Menninger is the host of the Startuprad.io podcast and covers founders, investors, and policy developments across the DACH startup ecosystem. Through more than 1,300 interviews and nearly a decade of reporting, he documents the evolution of the European startup landscape. Follow Joern on LinkedIn.

Support Startuprad.io

Companies building in fintech and banking infrastructure use Startuprad.io to reach founders, operators, and decision-makers across the DACH ecosystem. If that fits your goals, explore partnerships here: Partner with Startuprad.io

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