Barcelona-based fintech ID Finance has closed a €545 million debt and equity funding round backed by Spice Expeditions, WashU, Kingsway Capital, and i80 Group. The capital will support the expansion of Plazo, the company’s flagship consumer finance app, and the new Turrón by Plazo payment solution. ID Finance describes the transaction as one of the largest ever closed by a Spanish fintech and a strong vote of confidence in its operating model.
Funding Structure and Investor Backing
The financing includes asset-based funding from i80 Group, secured by ID Finance’s loan receivables. i80 previously provided $150 million in debt financing in February 2024, the largest amount the firm has ever furnished in a single transaction. Kingsway Capital also participated after leading a €30 million convertible round in March 2023 with a €235 million valuation cap.
ID Finance did not disclose the exact split between debt and equity or the valuation attached to the new round. A company spokesperson highlighted that group revenue reached €243 million in 2025 and that the business is profitable. The company also expanded its Spanish eurobond by €20 million in March 2026, taking the total to €60 million with a 12% annual interest rate and maturity in September 2028.
Plazo’s Growth and Profitability
Plazo achieved bottom-line profitability in 2025, with revenue rising 300% year over year and more than 400,000 registered users. ID Finance expects Plazo to grow by another 300% in 2026, supported by AI-powered technology infrastructure. The platform’s credit portfolio is expected to reach around €200 million as the company scales its lending operations.
Alexander Dunaev, co-founder of ID Finance, said the investment validates Plazo’s model for modernizing consumer credit in Spain. He noted that Plazo tripled its portfolio in 2025 and reached profitability, proving that responsible AI-driven underwriting and a better product experience can scale together. The company considers Plazo a central pillar of its long-term strategy.
Turrón by Plazo Expands the Product Suite
ID Finance recently launched Turrón by Plazo, a flexible payment solution that combines an e-money account, a debit card, and a buy now, pay later option. The product allows eligible purchases to be split into interest-free installments at partner merchants, both online and in physical stores, without maintenance fees or subscriptions. The company is now focused on expanding its network of partner merchants.
ID Finance plans to attract users through its existing Plazo customer base rather than competing primarily at merchant checkouts. The launch of Turrón marks another step toward building what the company calls Spain’s go-to consumer credit platform. With Plazo’s profitability and rapid adoption, the new product is expected to support further revenue diversification.
Competitive Position and Market Outlook
The Spanish buy now, pay later market is becoming increasingly competitive. Barcelona-based SeQura raised €410 million in November 2024, while Klarna secured €1.4 billion from Santander before its New York IPO in September 2025 at a valuation of $15.1 billion. Traditional banks are also active, with CaixaBank enabling customers to split Apple Pay payments.
ResearchAndMarkets forecasts that Spain’s buy now, pay later sector will reach $11.75 billion in 2026, a 22% increase, and grow 17.9% annually through 2031. Spanish startups raised €3.1 billion in venture capital in 2025, with half of all deals based in Barcelona. ID Finance’s €545 million round surpasses SeQura’s previous record and positions the company prominently in this expanding market.
ID Finance must now deliver the growth that a €545 million investment implies, starting from a base of 400,000 users and a €137 million loan book. The company will also need to navigate increasing regulatory oversight in the consumer credit sector. It remains unclear how much of the new capital is debt, which will eventually have to be repaid from a portfolio that has only recently become profitable.