(Bloomberg) -- Japan’s SBI Holdings Inc. is set to become the majority owner of Solaris SE after offering the largest contribution in a current fundraising round by the German fintech, according to a person familiar with the matter.
Solaris is seeking €100 million ($105 million) to €150 million from investors to secure funding until it expects to reach profitability in about two years, the person said, asking not to be identified discussing internal information. SBI already led a €96 million funding round in March.
Officials for Solaris and SBI declined to comment.
Solaris, which provides white-label services to other lenders, said on Monday that it would finalize agreements with its investors on a long-term and sustainable financing solution in the coming days. It has struggled to break even amid a dispute with German financial regulator BaFin, write-downs on an acquisition and costs related to the onboarding of a credit card portfolio of German motorist club ADAC.
To turn Solaris has slashed headcount to about 450 from more than 700, according to one of the people. It reported a loss of €178 million for last year, on €137 million of revenue, this person said.
Solaris counts Banco Bilbao Vizcaya Argentaria SA, ABN Amro Bank NV, Visa Inc. as well as venture capital firms among its backers, according to the company’s website.
©2024 Bloomberg L.P.