ID Finance Backs Profitable Plazo With €545 Million Mix

Barcelona lender ID Finance closed €545 million ($608 million) in mixed debt and equity on 13 October 2026 to scale Plazo, its consumer credit app. The group did not publish the split or a valuation.

Plazo already turned a profit in 2025 after tripling its loan book, and the package landed 38 days before EU rules start treating buy now, pay later as ordinary consumer credit.

ID Finance Leaves the Debt Split Undisclosed

The company announced EUR 545 million from international investors with Spice Expeditions, WashU, Kingsway Capital and i80 Group in the group. Equity is meant to fund Plazo’s growth in Spain, while i80’s piece is asset-based financing secured by receivables, a structure built to enlarge a loan book rather than buy a bigger office.

ID Finance called the package one of the largest closed by a Spanish fintech in recent years and placed it above the €410 million seQura raised in November 2024. A spokesperson declined to discuss valuation figures from this round or from earlier convertibles.

WHAT WE KNOW

• The headline: €545 million of debt and equity closed on 13 October 2026 for Plazo’s next stage in Spain.
• The debt path: i80 Group is providing asset-based financing secured by the lender’s receivables.
• The equity path: Spice Expeditions, WashU and Kingsway Capital joined as international investors, and Kingsway was already on the register.
• The use of funds: expand Plazo’s product set, including Turrón, and grow the credit portfolio.

WHAT IS UNCONFIRMED

• The split: how many of the €545 million are equity and how many are a drawable credit line.
• The price: the valuation attached to any new shares.
• The draw: whether the debt will sit as cash or be taken down as Plazo issues loans.

That hole in the term sheet is the difference between a venture round and a warehouse. A credit shop can announce a large facility and still have to originate, collect and refinance every euro it actually uses.

A 400,000-User App That Already Makes Money

ID Finance, founded in Barcelona in 2015 by Boris Batine, the chief executive, and Alexander Dunaev, the chief operating officer, both former Deutsche Bank bankers, runs consumer lending in Spain and Mexico. Group revenue reached €243 million in 2025, and the company said profit almost doubled that year. In 2023, when it last published a fuller snapshot, group revenue was €180 million and net income was €7.1 million.

Plazo launched in 2021 and is now the centre of the plan. The app passed monthly bottom-line profit in 2025, grew revenue 300%, and built a client base of more than 400,000 users, up from over 190,000 in 2023. The company homepage puts the Plazo gross portfolio at €137 million and says it expects that book to reach around €200 million. Dunaev said the portfolio tripled in 2025. A spokesperson said the group is fully operationally profitable in 2026 and wants another 300% of Plazo growth this year, without publishing the base for that target.

On the group’s own figures, the new package is about four times the current Plazo book. That only makes sense if a large share is a line to be drawn against future receivables, not cash paid in on day one.

ID FINANCE’S CAPITAL STACK

The pattern is a lender funding its book the way lenders do, with notes, warehouses and a thin layer of new equity. Since inception the group says it has originated €2.4 billion of loans and served more than 10 million users across its brands.

How Does Plazo’s Credit Line Work?

Plazo is a Spanish IBAN account, a fee-free virtual card, shopping rewards and a revolving credit line in one app, with small loans marketed up to €5,000. The company’s own representative example prices a revolving credit line of €1,500 at 21.86% nominal interest and 24.19% APR, repaid over 48 equal monthly instalments of €47.15. That is priced consumer credit, not a free three-pay button at checkout.

On 24 July 2026 the group added Turrón by Plazo, a card that splits purchases at partner shops into instalments with no extra steps at the till. The standard plan is three monthly payments, and larger tickets at selected retailers can run to 12 months. ID Finance said it will pull Turrón customers from the existing Plazo base rather than buy merchant checkout slots the way seQura and Klarna do.

WHAT PLAZO PUTS IN ONE APP

• Account: a Spanish IBAN for pay-ins and day-to-day money.
• Card: an instant virtual card with no fees, issued through an electronic money firm.
• Credit: a revolving line from ID Finance Plazo S.L.U., with the €1,500 example running at 24.19% APR.
• Turrón: automatic instalments at partner retailers, launched on 24 July 2026.
• Rewards: cashback on purchases, plus extra in-app services.

The product the new money is supposed to scale is already a credit relationship. Turrón is the piece that looks like classic buy now, pay later, and that is the piece EU law is about to drag fully inside the consumer-credit fence.

Who Put Up the Money for Plazo?

i80 Group, a New York credit investor founded by Marc Helwani, supplied the asset-based line and had already written a $150 million facility in February 2024, which i80 described at the time as the largest financing in its own history. Peter Frank, managing director at i80, tied this new cheque to risk control on a growing book.

ID Finance has done a tremendous job of managing risk while growing the portfolio. We’re delighted to deepen our relationship and increase the scale of the asset-based financing that will support Plazo’s next phase of growth as it continues to modernise consumer credit in Europe.

Peter Frank, managing director, i80 Group

Kingsway Capital, a London asset manager that Tamir Saeed, managing partner, said runs about $3.4 billion, led the €30 million convertible in March 2023 and is back again. Saeed said the firm is still backing access to financial services in Spain and Mexico and pointed to Plazo and Turrón as the next chapter. Spice Expeditions is listed in Westport in the United States. WashU is Washington University in St. Louis.

Dunaev framed the money as proof that the Spain model works, and he folded Turrón into the same sentence as the product roadmap.

This investment is a strong vote of confidence in Plazo and in the model we’ve built to modernise consumer credit in Spain. Plazo tripled its portfolio in 2025 and reached profitability, proving that responsible, AI-driven underwriting and a genuinely better product experience can scale together. This new capital from some of the most reputable global investors in FinTech lets us build on that foundation, expand Plazo’s product suite and keep pushing on innovation, including through Turrón.

Alexander Dunaev, co-founder and chief operating officer, ID Finance

Kingsway still talks about Mexico. The company said this equity is to drive Plazo in Spain. Those two maps are not the same, and the term sheet does not say how much capacity, if any, is reserved for the Mexican book.

The 20 November Deadline for Buy Now, Pay Later

From 20 November 2026, the new EU consumer credit directive (Directive (EU) 2023/2225) applies to new contracts and repeals the 2008 regime. Short-term, often fee-free instalment products that sat outside the old rules are pulled in. Payment firms already tell merchants they must treat BNPL as fully regulated lenders, with creditworthiness checks, pre-contract information and a 14-day right to withdraw.

Member states were supposed to put the directive into national law by 20 November 2025. Spain missed that date. On 30 September 2026 the European Commission sent Spain a reasoned opinion, the second step of an infringement case, for not fully communicating the transposition, and gave two months to reply. A Spanish draft consumer-credit law went through a first Council of Ministers reading on 7 January 2026; by early October it still had not reached Congress.

THE PATH TO 20 NOVEMBER

1. 18 October 2023: The EU adopts Directive (EU) 2023/2225 on consumer credit agreements.
2. 20 November 2025: The deadline for member states to put the directive into national law passes, with Spain among those that do not complete the notice.
3. 7 January 2026: Spain’s Council of Ministers approves a draft consumer-credit contracts law in first reading.
4. 30 September 2026: The Commission issues a reasoned opinion to Spain and 15 other states.
5. 20 November 2026: The directive starts applying to new consumer-credit contracts across the EU, including buy now, pay later.

Plazo’s revolving line at 24.19% APR already looks like credit the 2008 rules would recognise. Turrón’s three-month shop instalments are the product that needed the new directive to be treated the same way. Loading a facility 38 days before that start date gives ID Finance room to grow the book while the Spanish statute is still moving, and it also means new Turrón contracts written from 20 November will sit inside a tighter perimeter whether Madrid has finished or not.

How Are Spanish Banks Answering Instalments?

The name fight is already on the high street. Major Spanish banks, working through the Sistema de Tarjetas y Medios de Pago, have been preparing Plazo Cero, an interest-free deferral of card purchases at the terminal, with pilots talked about for late 2025 and a wider 2026 rollout. CaixaBank has also split Apple Pay purchases into instalments inside Apple Wallet. That is instalment credit as a feature of a bank card, not as a download from a specialist app.

seQura, also based in Barcelona, raised €410 million in November 2024 and was cited with about €100 million of annual revenue after that round. Klarna listed in New York in September 2025 at a $15.1 billion valuation and has taken €1.4 billion of funding from Santander. ID Finance is trying to win on its own user base of more than 400,000, not on a 5,000-merchant checkout grid.

New household consumer-credit operations in Spain reached about €46.6 billion in 2025. A €137 million Plazo book is a small slice of that flow. The bet inside the €545 million is that an app with a priced revolving line, a new instalment card and warehouse capacity can take more of the slice once every provider has to run the same credit checks.

The Credit Book Still Has to Earn Its Keep

Whatever share of the €545 million is debt will have to be repaid from a book that only recently printed a profit and that the company wants to take toward €200 million. The eurobond already carries a 12% coupon through September 2028. i80’s line is secured on receivables, which works while collections stay clean and tightens when they do not.

The older Spanish digital-lending platform is a separate engine from Plazo, and it is still being warehoused in parallel, including through the September 2026 nordIX facility. Plazo is the brand the new equity is supposed to make famous. The receivables pledged against the new debt are the assets that have to perform.

On 20 November 2026 the EU starts applying the revised consumer credit directive to contracts from that date. ID Finance has not said how much of the €545 million must be paid back from the Plazo book, or at what pace.

Frequently Asked Questions

Who issues the Plazo card in Spain?

The Plazo card is issued and managed by Pecunia Cards EDE, S.L.U., an electronic money institution supervised by the Bank of Spain and registered as CSB 6707. The revolving credit line itself is granted by ID Finance Plazo S.L.U., and the app also offers a 24/7 chat for legal, medical and veterinary questions through a partnership with Meeting Pros.

Did earlier foreign investment in ID Finance need Spanish government approval?

Yes. The March 2023 Kingsway Capital package was a convertible loan with a €235 million valuation cap, and it needed a sign-off from the Spanish Council of Ministers after a review by the External Investment Board. ID Finance described that inflow as the largest into a Spanish fintech in 2023, and the deal mixed new primary capital with a buyout of some early investors.

When did ID Finance launch Turrón by Plazo, and what are the terms?

Turrón launched on 24 July 2026. The standard repayment plan is three monthly instalments, larger purchases at selected retailers may run to 12 months, and the company says there is no maintenance fee and no subscription. Vitali Yermakou, country manager at ID Finance, said the card applies instalments automatically at partner merchants so customers do not take extra steps at checkout.

When do EU rules start treating buy now, pay later as consumer credit?

Directive (EU) 2023/2225 applies from 20 November 2026 to new consumer-credit contracts, including short-term instalment products that used to sit outside the 2008 rules. States were due to put it into national law by 20 November 2025. On 30 September 2026 the European Commission sent Spain a reasoned opinion for not fully communicating that step, and Spain’s draft law had not yet reached Congress.

How is Plazo different from ID Finance’s older Spanish lending book?

Plazo is the 2021 app with more than 400,000 users and a €137 million gross portfolio. The older Spanish digital-lending platform, known in the market through the MoneyMan brand, has more than 3.7 million unique registered users. In the first half of 2026 that platform issued over €190 million of consumer loans and generated about €100 million of revenue, and the €21 million nordIX facility in September 2026 was earmarked to fund more of those small, fully digital loans.

Disclaimer: This article is news reporting and analysis of a private company’s financing and consumer-credit products, and it is for information only. It is not investment advice, credit advice, or a recommendation to use Plazo, Turrón, or any loan, card, or instalment plan, and it is not legal advice on EU or Spanish consumer-credit rules. Readers who are considering borrowing, lending, or investing should speak with a qualified financial adviser, credit counsellor, or lawyer licensed in their jurisdiction before acting. Amounts, product terms, regulatory dates, and company status are those given by the cited filings, product pages, and statements, and they can change.