The initial investment in Instantor was in line with Altus Capital strategy of direct investments in fast-growing and underestimated companies across European markets based on sector specific expertise which could provide clear exit opportunities within short-term horizon.The investment mandate of the group is primarily focused on FinTech due to significant technology shift in the industry, with annual investments exceeding $50+ billion and growing 15+% year over year.
Founded in 2010, Instantor was a perfect match for Altus Capital investment strategy where the group acquired a majority stake in 2019. The company is a developer of machine-learning-powered open API credit-risk management software trusted by over 200 Financial Institutions, integrated with over 250 banks globally and supports more than 5 million credit decisions annually.
Instantor provides banks, lenders and fintechs across Europe, Asia and South America with consumer bank data that helps them enhance their credit decisions by verifying an individual's identity (KYC), income and expenses, based on account aggregation technology.
The Company is headquartered in Stockholm (with 26 employees) and licensed under PSD2 as an Account Information Service Provider (AISP) in 13 European markets.
Instantor, which almost doubles its revenue every year since inception, directly benefits from the rise in adoption of open banking technology, its applications and services as well as supportive regulations in the space.
According to the report published by Allied Market Research, the global open banking market is expected to reach $43.15 billion by 2026, while Europe is estimated to witness the highest CAGR of 24% since 2019.
Altus Capital successful exit followed as a consequence of consolidation trends in European open banking landscape as well as strategically driven product fit. The Instantor team will become part of Tink, the most dominant player in the market which enables banks, fintechs and startups to develop data-driven financial services. Tink's API offers one access point to financial data from across Europe allowing its customers to aggregate financial data, initiate payments, enrich transactions and build personal finance management tools.
Instantor's credit decision solutions and technology can significantly expand Tink's current product offering in the space and strengthen its market leader position while Instantor's products, services and more than 150 live customers — consisting of banks, fintechs and lenders —will gradually be migrated to Tink's platform.
Sergey Vasiliev, Managing Director, Altus Capital, said: "Financial technologies in Europe is one of the strategic and most attractive markets for Altus Capital. In 2019, total investments in this sector reached 135.7 billion U.S. dollars globally. Altus Capital in 2019 launched its fintech investment platform, and now we are pleased to support a European market consolidation trend and help Tink to find additional synergies and enhance their operations. We believe that Instantor is an exceptional acquisition for Tink and will provide it with opportunity to develop and grow further".
About Altus Capital
Altus Capital (altusca.com) is an independent international investment and consulting group with more than $1 billion AUM and 5 offices across Europe focusing on direct investments in fast-growing and underestimated companies. Its investment strategy is characterized by high sector-wise diversification, clear exit strategy and investment horizon from 3 year to 5 years. The group has international investment mandate and primarily focus on European and CIS markets, although not limited with them.