Société Générale is acquiring freelancer challenger bank Shine – TechCrunch

Société Générale acquires the French startup Shine. The terms of the contract are not known. According to a source, Shine is being acquired for around € 100 million in cash (around $ 112.6 million).

The startup had previously raised a total of EUR 10.8 million (USD 12.2 million) from Daphni, Kima Ventures, XAnge and various business angels.

If you’re not familiar with Shine, the startup has built a challenger bank for freelancers and small businesses in France. You can use it to create a business account, get a debit card, and do some of the most tedious administrative tasks.

With Shine, for example, you can involve your company and generate invoices directly from the app. You can send a link to your customer. You will receive a notification when your customer opens the invoice and they can view your Shine IBAN directly on the invoice.

And since the invoicing tool is integrated into your commercial bank account, your invoices are automatically marked as paid in the app.

When it comes to receipts, you can also open a card transaction and add a receipt to that transaction. This way, all accounting information stays in the same app. If you work with an accountant, you can set up an automatic export of receipts, invoices and transactions once a month.

But the best thing about Shine is that it helps you keep track of the paperwork. You will receive notifications reminding you that you should pay your taxes. You can see how much money is left after paying your taxes and more.

And it has worked well with 70,000 freelancers and very small businesses who use Shine for their bank account. But Shine is building on Treezor, a banking-as-a-service company that provides financial services and debit cards to other fintech companies. On this scale, it would make sense for Shine to set up its own infrastructure.

Shine has made a different decision and is joining Société Générale, which also happens to be the company that Treezor acquired a few years ago.

Shine will operate independently from Société Générale and will continue to add new customers – the two co-founders will remain at the helm of Shine. However, the two companies have plans to promote their respective offerings to one another.

Société Générale could offer Shine to its business customers. And when freelancers start working with other people and turning their small independent business into a full-fledged business, Shine could also tell its clients to choose Société Générale for their commercial bank account.

Shine will also use Société Générale’s banking license and products. As a Shine customer, you can imagine receiving a line of credit from Société Générale. With a banking giant behind you, Shine’s offerings could be vastly improved. Now we want to see whether Société Générale succeeds in increasing Shine’s potential.

Update: A spokesman for Société Générale and a spokesman for Shine have disproved the price of the acquisition. According to new information I received from sources, the acquisition will take place over several tranches, with the first payment currently being made. Together, these tranches add up to a total of around EUR 100 million. As part of this, founders receive financial incentives if they can achieve certain goals over several years.

Image credit: Shine

April 9, 2021