ID Finance secures €545 million to expand Plazo in Spain
Fintech group ID Finance has raised €545 million in debt and equity to fund the growth of its Spanish consumer finance app, Plazo.
ID Finance has secured €545 million in a combined debt and equity funding round. The fintech group, which operates in Spain and Mexico, will use the capital to expand its flagship consumer finance platform, Plazo, marking one of the largest transactions completed by a Spanish fintech in recent years. A group of international investors including Spice Expeditions, Washington University Investment Management Company, Kingsway Capital, and i80 Group provided the financing.
The deal reflects strong investor confidence in ID Finance's business model and long-term strategy. By blending debt and equity, the company gains financial flexibility for its expansion plans. i80 Group is returning as a lender and increasing the scale of its asset-based financing, a structure that mirrors a facility the company provided in early 2024.
Use of capital and product expansion
The new capital will support the next phase of growth for Plazo. Funds will be used to broaden the app's product range and build out its capabilities. A central element of ID Finance's strategy is to modernize the Spanish credit market by making financial products more accessible, flexible, and convenient.
As part of that expansion, Plazo recently launched Turrón by Plazo. This payment product combines an e-money account, a debit card, and a buy-now-pay-later option in a single offering. The addition of BNPL extends Plazo beyond traditional credit products into everyday payments. Following the launch, ID Finance's focus has shifted to expanding Turrón's network of partner merchants. Kingsway Capital identified both Plazo and Turrón as the products driving the company's next phase.
Alexander Dunaev described the investment as backing for the model ID Finance has built for consumer credit in Spain. The funding round pairs equity with asset-based financing, tying a portion of the capital directly to Plazo's lending activity. For the Spanish market, the deal places additional capital behind a digital lender combining credit, e-money, and BNPL within one app.
Investor rationale and historical context
Investors cited several reasons for their continued backing. Peter Frank, Managing Director at i80 Group, pointed to ID Finance's risk management during portfolio expansion as a key factor in deepening the relationship. Kingsway Capital, which has backed ID Finance for several years, framed its participation around the company's mission of extending access to financial services in Spain and Mexico.
This new round builds on a prior debt facility of approximately €138 million provided by i80 Group in early 2024, which was used to grow Plazo's credit portfolio. Alexander Dunaev linked Plazo's results to its AI-driven underwriting combined with product experience. The company expects Plazo to grow by a further 300% in 2026, a target supported by its AI-based technology infrastructure and this new financing.
Strategic outlook and market impact
ID Finance aims to establish Plazo as the default consumer credit platform for users in Spain. The 300% growth expectation for 2026 is a central part of this ambition. i80 Group stated the expanded facility will support Plazo's growth as it continues to modernize consumer credit in Europe.
Progress against the 2026 growth target and Turrón's merchant network build-out will indicate how far the combined model can extend across online and physical retail.
