ID Finance Secures 545 Million Euros to Expand Its Plazo Lending Platform

The Spanish fintech company ID Finance has secured 545 million euros in funding. The funds come from international investors, including Spice Expeditions, WashU, Kingsway Capital, and i80 Group. The funding combines equity and debt and is intended, in particular, to drive the growth of the digital consumer finance platform Plazo. At the same time, the company is expanding its “Buy Now, Pay Later” offerings with its new product, Turrón.

With this new funding, ID Finance aims to strengthen its position in the Spanish consumer credit market. The company is focusing on digital financial products, automated credit decisions, and an AI-powered infrastructure.

According to the company, the transaction is one of the largest financing rounds for a Spanish fintech in recent years.

However, the total amount of 545 million euros includes both equity and debt financing. The breakdown of the amount across the individual financing forms has not been disclosed.

International Investors Participate

Spice Expeditions, WashU, Kingsway Capital, and the investment firm i80 Group are participating in the financing.

i80 Group is providing asset-backed financing, which is intended specifically to support Plazo’s lending business.

The partnership between ID Finance and i80 Group has been in place for several years. In early 2024, the investor provided the company with $150 million in debt financing to enable the expansion of Plazo’s loan portfolio.

The new agreement expands this financing relationship.

Such financing structures are particularly important for lending platforms. While equity capital finances corporate development, among other things, secured credit lines serve to underpin the growing lending business with capital.

Revenue Reaches 243 Million Euros

The capital raise follows a fiscal year in which ID Finance, according to its own reports, grew significantly.

For 2025, the group reported revenue of 243 million euros. Profit nearly doubled during the same period.

The announcement does not contain specific details on the absolute amount of profit or on profitability at the group level.

According to the company, the consumer finance platform Plazo achieved a positive net income for the first time in 2025.

At the same time, the platform’s revenue rose by 300 percent compared to the previous year. The number of users increased to more than 400,000.

Plazo’s loan portfolio also tripled last year, explains ID-Finance co-founder Alexander Dunaev.

According to the company, this development lays the foundation for further expansion.

Plazo is expected to experience strong growth again in 2026

For the current fiscal year, ID Finance expects this growth trend to continue.

According to the company’s forecast, Plazo is expected to grow by another 300 percent in 2026. The press release does not clearly specify which specific metric this growth forecast is based on.

A key component of the strategy is the use of artificial intelligence.

The technology is intended to assist in particular with credit checks, risk assessment, and process automation.

For providers of digital consumer loans, risk management is a critical economic factor. Rising loan volumes simultaneously increase the demands placed on creditworthiness assessments and the monitoring of potential defaults.

ID Finance notes that its loan portfolio has performed well financially despite strong growth. The company does not provide independent metrics on the default rate or the quality of its loan portfolio in the press release.

Turrón Expands Its Offering with “Buy Now, Pay Later”

In addition to expanding Plazo, ID Finance is continuing to develop its product portfolio.

With Turrón, the company recently introduced an additional payment solution for the Spanish market.

The offering combines an e-money account, a debit card, and a “Buy Now, Pay Later” feature. It is designed to allow customers to make purchases both online and in brick-and-mortar stores while taking advantage of flexible payment options.

In the next step, ID Finance plans to expand its network of affiliated merchants.

The integration of BNPL features complements the existing consumer credit business and is intended to expand the platform’s everyday use cases.

As a result, ID Finance is increasingly moving toward becoming a comprehensive digital platform for consumer finance and payment services.

Spain as a Key Growth Market

The Spanish market is at the center of the current expansion.

ID Finance aims, in particular, to expand credit offerings via digital applications there and to integrate additional financial products into its existing portfolio.

The Plazo platform forms the core of this growth strategy. Turrón is expected to complement the offering with additional payment and financing options.

In addition to Spain, ID Finance is also active in Mexico. In this context, Kingsway Capital highlights the existing collaboration in providing financial services in both markets.

However, the new financing is primarily geared toward the growth of Plazo and the further development of the Spanish business.

Financing Creates Room for Further Loan Growth

With 545 million euros in equity and debt capital, ID Finance is securing additional funds for its next phase of growth.

The focus is on expanding the loan portfolio, developing digital financial products, and further enhancing the technological infrastructure.

A key factor for the company will be whether Plazo can sustain its strong growth while maintaining controlled credit risks.

With more than 400,000 users, a profitable fiscal year for the platform, and new financing partners, ID Finance considers itself well-positioned for expansion.

At the same time, the transaction highlights the role that institutional debt financing plays for high-growth fintechs in the lending business. The announced 545 million euros should therefore not be equated with a traditional venture capital equity round.