ID Finance Secures €545M to Expand Spanish BNPL App Plazo

Barcelona-based fintech company ID Finance has secured €545 million through a combination of debt and equity financing to expand its consumer credit business, with a particular focus on its Spanish buy now, pay later (BNPL) app, Plazo.

Founded by former Deutsche Bank bankers Boris Batine and Alexander Dunaev, ID Finance is shifting beyond its traditional short-term lending business as it develops Plazo into a broader consumer finance platform. The funding commitments come from Spice Expeditions, WashU, Kingsway Capital, and i80 Group.

The company has not disclosed the exact split between debt and equity. The equity funding is intended to support Plazo's growth, while i80 Group's asset-based financing will help expand its credit portfolio.

ID Finance reported €243 million in revenue in 2025 and says the business is operationally profitable in 2026. Its latest financing marks a significant step in its efforts to scale consumer credit services in Spain.

ID Finance's Journey From Online Lending to BNPL

ID Finance was founded in Barcelona in 2012 by Boris Batine, its chief executive officer, and Alexander Dunaev, its chief operating officer. Both founders previously worked in financial services, including roles at Deutsche Bank.

The company initially focused on online lending, providing short-term loans through digital platforms. Over time, it expanded its lending operations and developed products aimed at consumers seeking accessible financial services.

Its Spanish lending platform has more than 3.7 million registered users, according to the company. ID Finance reported issuing over €190 million in loans during the first half of 2026, generating approximately €100 million in revenue during that period.

The company launched Plazo in 2021 as part of its broader consumer finance strategy. The app now has more than 400,000 users, although the article notes that user figures may be calculated differently across the company's products.

The €545 million financing is intended to support the next stage of this transition, with Plazo positioned as a key growth platform.

Breakdown of the €545M Financing

The financing combines debt and equity, but ID Finance has not disclosed the amount allocated to each category.

The named funding participants are Spice Expeditions, WashU, Kingsway Capital, and i80 Group. The company plans to use the equity component to drive Plazo's expansion, while i80 Group's asset-based financing will provide additional capacity to support consumer lending.

Kingsway Capital has supported ID Finance in previous funding rounds. In March 2023, it led a €30 million financing round structured as a convertible loan with a €235 million valuation cap, subject to the arrangements described in the original report.

ID Finance also secured $150 million in debt financing from i80 Group in February 2024. The company subsequently increased its existing eurobond by €20 million in March 2026, bringing the total amount to €60 million. The notes carry a reported annual interest rate of 12% and mature in September 2028.

These earlier transactions illustrate the importance of debt financing to ID Finance's lending model. Unlike conventional equity funding, debt-backed facilities must be supported by the company's ability to manage its loan portfolio and meet repayment obligations.

The latest €545 million commitment therefore represents a combination of growth capital and financing capacity rather than a single equity investment.

Who Is Backing ID Finance?

ID Finance's latest funding involves investors with experience in credit, financial services, and technology.

i80 Group is an asset-based credit investor that provides financing to businesses using assets such as receivables to support lending arrangements. Its funding is intended to help ID Finance expand the credit portfolio supporting Plazo.

Peter Frank, managing director at i80 Group, said the firm was pleased to deepen its relationship with ID Finance, citing the company's risk management and portfolio growth.

Kingsway Capital is another established investor in the company. Managing partner Tamir Saeed said the firm was continuing to support ID Finance's efforts to expand access to financial services in Spain and Mexico, highlighting Plazo and Turrón as products with growth potential.

Spice Expeditions and WashU are also named among the funding participants.

The financing comes as ID Finance seeks to strengthen Plazo's position in Spain's competitive consumer credit market, where fintech platforms, established lenders, and digital banking services are competing for customers.

Plazo's BNPL Strategy and the Launch of Turrón

Plazo is expanding beyond traditional short-term lending through a broader consumer finance offering.

In July 2026, the company introduced Turrón, which provides an e-money account, a debit card, and a buy now, pay later feature. Eligible purchases at partner merchants can be divided into interest-free instalments, according to ID Finance. The company also says the product has no maintenance fee or subscription charge.

The approach is designed to let customers access payment flexibility through a single financial platform rather than relying exclusively on standalone short-term loans.

ID Finance plans to attract customers through Plazo's existing user base instead of relying primarily on merchant checkout integrations. This strategy could help the company introduce new services to customers who already use its lending products.

According to the company, Plazo's revenue increased by 300% in 2025, and the platform achieved bottom-line profitability that year. ID Finance has also stated that Plazo's credit portfolio tripled in 2025 and that it expects the portfolio to reach approximately €200 million.

The company has set an ambitious target of 300% growth for Plazo in 2026, although the supplied report does not provide supporting figures for that forecast.

A Competitive Spanish BNPL Market

ID Finance is expanding in a market that includes dedicated buy now, pay later providers, international fintech companies, and traditional banks.

Barcelona-based seQura is one of its notable competitors. The company raised €410 million in November 2024, according to the source article, making it a significant player in Spain's consumer financing market.

Klarna is another major competitor in the wider BNPL industry. Meanwhile, Spanish banks are also introducing instalment payment options through their existing digital banking services.

CaixaBank, for example, allows customers to split certain Apple Pay payments, illustrating how established financial institutions are incorporating flexible payment features into their offerings.

According to a market forecast cited in the source article, Spain's BNPL sector could reach $11.75 billion in 2026 and continue growing through 2031. Such estimates are forecasts rather than confirmed future market outcomes, and their reliability depends on the methodology used.

For ID Finance, the opportunity lies in combining its established lending operations with Plazo's growing customer base and newer payment services. However, it must compete on customer experience, responsible lending, risk management, and the attractiveness of its financial products.

How ID Finance Plans to Use the Funding

The financing will support Plazo's growth in Spain and provide additional capacity for ID Finance to expand its consumer credit portfolio.

The company has reported €243 million in revenue for 2025 and says it is operationally profitable in 2026. These figures provide context for the scale of its operations, but they do not establish the profitability or repayment profile of every individual financing arrangement.

The distinction between debt and equity is particularly important. Equity can support expansion without creating the same contractual repayment obligations as debt, while asset-based financing enables a lender to expand its loan portfolio using funding secured against receivables.

Because ID Finance has not disclosed the precise allocation of its €545 million financing, the amount available for direct expansion cannot be determined from the supplied report alone.

The company will also need to manage credit risk as its portfolio grows. Consumer lending businesses must balance customer acquisition and loan growth against defaults, funding costs, regulatory requirements, and the ability of borrowers to repay.

For Plazo, sustained growth will depend on converting its existing user base into long-term customers while maintaining responsible underwriting and a financially sustainable lending model.

What Comes Next for Plazo?

ID Finance is positioning Plazo as an important part of its evolution from a digital lender into a broader consumer finance business.

The combination of an existing lending platform, a growing BNPL app, and the launch of Turrón gives the company several routes to expand its services. Its reported profitability and access to new funding provide a foundation for further growth, although the undisclosed debt-equity split leaves important questions about the financing structure unanswered.

The next phase will test whether Plazo can meet its growth ambitions while maintaining credit quality and managing the cost of funding its loan portfolio.

The €545 million financing gives ID Finance additional resources to pursue that strategy. Its long-term success will depend on how effectively it deploys the capital, manages risk, and differentiates Plazo in an increasingly competitive Spanish consumer finance market.