Paris-based fintech start-up, Qonto, whose primary product offering is business banking, has purchased Regate, an accounting and financial automation platform. The move comes as Qonto, flush with funding, aims to create an all-in-one financial solution for small and medium businesses (SMBs). The acquisition of Regate follows Qonto’s recent acquisition of its German competitor, Penta.

Qonto boasts an impressive customer base of over 450,000 companies, with France being its primary market. Furthermore, the firm successfully raised a massive $486m Series D funding round in 2022, providing it with abundant cash to facilitate its current buying spree.

The newly acquired Regate is a promising start-up that integrates with existing accounting software platforms like Sage, Cegid, and ACD, thus simplifying financial automation for its clients. Among its 10,000 clientele, around 6,000 are already Qonto customers, while an additional 500 accounting firms use the Regate system.

Post-acquisition, Regate’s 100-employee team will integrate with Qonto’s 1,400 staff, forming a new business unit focused on financial tools for accountants. Following a series of initial integrations, the eventual aim is to incorporate Regate into Qonto, thereby enhancing Qonto’s accounting automation features.

The deal also implies that accounting firms using Regate will serve as an additional sales channel for Qonto, with plans to merge the two platforms gradually. However, the company assured that customer experience for both corporate clients and accounting firms will always be a priority.

While this is only Qonto’s second acquisition to date, the firm’s executives are reportedly pleased with the integration process thus far and eyeing more acquisitions in the future. Qonto sees itself at an advantage with its healthy business model and significant funding while many fintech start-ups struggle to raise new rounds of funding.

Source: Flush with cash, French fintech unicorn Qonto acquires Regate.