Qonto used its cash pile to acquire accounting automation startup Regate

A Paris business bank for SMEs, expanded into invoicing, expenses and bookkeeping integrations

Merging an accountant-facing automation platform into Qonto will make it a single 'cockpit' for SMEs and their accountants, and give it a new sales channel

Undisclosed share of Qonto's cash, after a €486M Series D in 2022; price not disclosed

Qonto began with online business accounts and debit cards for SMEs, then added invoicing, expense management and integrations. It had earlier acquired German competitor Penta and moved its customers onto Qonto.

Regate, a French accounting automation SaaS that raised a €20M Series A, had attracted 10,000 clients since 2020 and tripled revenue in 2023. Its co-founder Laura Pallier said that after an intense discussion with Qonto, she and her team sold to reach the next level. Regate's 100 staff will form a business unit within Qonto's 1,400-person team, with the two platforms integrated gradually.

Qonto had ample cash from its 2022 round and from interest income on customer balances

Accounting firms are a sales channel and Regate's tools extend Qonto's finance offering

Many fintech startups were struggling to raise new rounds, so targets were available

Qonto's CEO attributes its acquisition capacity to having no free tier, so customers turn profitable within months, and to raising a very large round at the right moment.

As of March 2024 Regate's team was joining Qonto's new accountant unit, with the products to be integrated gradually and more acquisitions possible.