Barcelona-based fintech ID Finance has secured fresh debt and equity financing to expand its consumer lending operations and accelerate the growth of Plazo, its buy now, pay later platform.
Barcelona-based financial technology company ID Finance has secured €545 million in debt and equity financing, marking a significant step in its plans to expand Plazo, its consumer credit platform in Spain.
The financing involves Spice Expeditions, WashU, Kingsway Capital and i80 Group. While the company has not disclosed how much of the total comes from debt and how much from equity, the funding has two distinct purposes. The equity investment will support Plazo’s expansion, while asset-backed financing from i80 Group will help increase its credit portfolio.
The deal comes as ID Finance looks beyond the short-term lending business on which it built its name. Its next phase centres on Plazo, a platform that combines consumer financial services with flexible payment options.
The company is pursuing that expansion after reporting €243 million in group revenue for 2025. Plazo also reached profitability that year, giving ID Finance a stronger financial foundation as it prepares to scale.
Plazo’s €200 Million Credit Portfolio Ambition
One of the central goals behind the financing is to expand Plazo’s lending capacity.
ID Finance expects Plazo’s credit portfolio to reach approximately €200 million in 2026. The platform currently serves more than 400,000 users and has a reported loan book of €137 million.
Plazo’s recent performance offers some insight into why investors are backing its expansion. According to the company, the platform tripled its credit portfolio in 2025, increased revenue by 300% and became profitable.
From Deutsche Bank Backgrounds to a Growing Spanish Fintech
ID Finance is led by co-founders Boris Batine, its CEO, and Alexander Dunaev, its COO, both of whom previously worked at Deutsche Bank.
Batine’s professional experience also includes Renaissance Capital and the Royal Bank of Scotland, while Dunaev previously headed structured products for Central and Eastern Europe at Deutsche Bank.
The company traces its beginnings to 2012 and has developed a substantial consumer lending operation in Spain.
Its Spanish lending platform has more than 3.7 million registered users. During the first six months of 2026, the business issued over €190 million in loans and generated approximately €100 million in revenue.
Although short-term loans remain an important part of its operations, ID Finance has been broadening its product offering through Plazo, which launched in 2021.
The latest funding illustrates how the business is directing more resources towards a platform that aims to provide everyday financial services alongside consumer credit.
Turrón Brings Interest-Free Instalments to Plazo Users
A key part of Plazo’s expansion is Turrón, a financial product introduced in July 2026.
Turrón combines an electronic money account and debit card with a buy now, pay later facility. Eligible purchases can be divided into interest-free instalments at participating merchants, including online stores and physical retail locations.
According to ID Finance, the product does not charge maintenance fees or subscription costs.
The company is also taking a different approach to acquiring customers. Rather than relying primarily on consumers discovering its service during a merchant’s checkout process, ID Finance intends to introduce Turrón to Plazo’s existing customer base.
That gives it an established audience of more than 400,000 Plazo users to work with as it develops the offering.
The approach also reflects a broader ambition for Plazo. Instead of operating solely as an instalment payment option, it is positioning itself as a consumer finance platform offering multiple services through a single product ecosystem.
i80 Group and Kingsway Capital Deepen Their Involvement
The €545 million financing builds on relationships ID Finance has established with existing financial backers.
Among them is i80 Group, an investment firm founded in 2016 by former Goldman Sachs banker Marc Helwani.
Previously, this company gave ID Finance debt financing worth $150 million in February 2024. The participation of this company in this new deal will also benefit its business operations of providing asset-backed loans.
Kingsway Capital has also maintained a relationship with ID Finance over several years.
In March 2023, Kingsway led a €30 million convertible loan financing arrangement carrying a €235 million valuation cap. That transaction required approval from the Spanish government.
The valuation attached to the latest financing has not been disclosed, making it difficult to determine how the new equity investment values the business.
ID Finance has separately accessed other sources of credit financing. These include a €21 million facility from German asset manager nordIX and an expansion of its eurobond programme in March 2026.
The above transaction raised the existing eurobond balance to €60 million. The bonds earn an annual interest rate of 12%, with maturity in September 2028.
Both of the above transactions emphasize the significance of structured borrowing in funding the company’s loan portfolio.
A €545 Million Deal With an Undisclosed Debt-Equity Split
Although €545 million is a substantial figure, and one important detail remains unanswered: how much represents new equity and how much is repayable financing?
Equity can provide capital for product development, operations and expansion without creating a contractual repayment obligation. Debt financing, meanwhile, allows lenders to increase the amount of credit they extend to customers, but comes with repayment and financing costs.
In ID Finance’s case, the asset-based funding from i80 Group is secured against receivables.
The undisclosed funding split also means the transaction cannot be treated as a €545 million equity investment or used on its own to establish a new company valuation.
Competition Intensifies in Spain’s Buy Now, Pay Later Market
ID Finance is expanding Plazo in a market where specialist fintech companies and established financial institutions are competing for consumer spending.
Barcelona-based seQura is one of the notable players in the sector, having secured €410 million in financing and reached annual revenue of €100 million.
Klarna represents another major competitor in the wider European market. The company went public in New York in September 2025 at a valuation of $15.1 billion and has also obtained €1.4 billion in financing from Santander.
Traditional banks are developing flexible payment products too. CaixaBank, for example, allows eligible customers to split payments made using Apple Pay.
ResearchAndMarkets estimates that Spain’s buy now, pay later market will reach $11.75 billion in 2026, representing growth of 22%. Its projections indicate annual growth of 17.9% through 2031.
These forecasts point to a growing market, but they also underline the challenge facing providers seeking a larger share of consumer spending.
For Plazo, access to financing and an existing customer base may support expansion. Its ability to sustain profitability while increasing lending will be another important measure of progress.
What Comes Next for ID Finance and Plazo?
ID Finance enters its next growth phase with a profitable group business, a growing consumer credit platform and €545 million in newly secured financing.
The company has reported that its operations are profitable in 2026, while Plazo achieved profitability in 2025. It is now targeting further expansion of the platform’s credit portfolio alongside wider adoption of Turrón.
For now, the transaction marks a shift in scale for ID Finance. A business built around short-term consumer lending is committing substantial capital to a broader financial services offering.
Its next test will be whether Plazo can turn that financing capacity into sustained customer growth and profitable lending in Spain’s increasingly competitive consumer credit market.
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