Capitalflow, a specialist business lender founded in 2016, has been acquired by Bunq in a deal valued at around €141m, according to the Dutch challenger bank’s owner.

The deal, which was announced last week and is pending regulatory approval by the Dutch financial regulator, is set to give Capitalflow improved access to funding at competitive rates and increase its scale. It plans to advance over €1.2bn in new lending over the next three years to Irish SMEs and property investors.

British private equity firm Pollen Street Capital, which owned Capitalflow, took a 10pc stake in Bunq for around €193m, valuing it at €1.6bn. Bunq owner Ali Niknam told Reuters the capital would be used to acquire Capitalflow Group of Ireland for roughly €141m as part of its growth strategy.

Ronan Horgan, chief executive of Capitalflow, said he hoped to grow the Irish business to 100 staff, up from 60, following the deal. He said he hoped to add more people on the technology and lending front.

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