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Challenger business bank Qonto raises $115 million round led by Tencent and DST Global

French startup Qonto has raised a $115 million Series C funding round led by Tencent and DST Global. Today’s news comes a few days after another French fintech startup Lydia raised some money from Tencent.

Existing investors Valar and Alven are also participating in today’s funding round. TransferWise co-founder Taavet Hinrikus and Adyen CFO Ingo Uytdehaage are also joining the round. Qonto says that it represents the largest funding round for a French fintech company.

Qonto is a challenger bank, or a neobank, but for B2B use cases. Instead of attracting millions of customers like N26 or Monzo, Qonto is serving small and medium companies as well as freelancers in Europe.

According to the startup, business banking in Europe is broken. The company thinks it can provide a much better user experience with an online- and mobile-first product.

The company has managed to attract 65,000 companies over the past two years and a half. The product is currently live in France, Italy, Spain and Germany. In 2019 alone, Qonto has managed €10 billion in transaction volume.

With today’s funding round, the company plans to double down on its existing markets, develop new features that make the platform works better in each country based on local needs and hire more people. The team should grow from 200 to 300 employees within a year.

Qonto obtained a payment institution license in June 2018 and has developed its own core banking infrastructure. Around 50% of the company’s user base is currently using Qonto’s own core banking system. Others are still relying on a third-party partner.

Moving from one back end to another requires some input from customers, which explains why there are still some customers using the legacy infrastructure. Over the coming months, Qonto plans to launch new payment features that should convince more users to switch to Qonto’s back end.

Even more important, Qonto plans to obtain a credit institution license, which could open up a ton of possibilities when it comes to features and revenue streams. The company says that it should have its new license by the end of the year.

For instance, you could imagine being able to get a credit card, apply for an overdraft and get a small loan with Qonto.

Compared to traditional banks, Qonto lets you open a bank account more easily. After signing up, Qonto offers a modern interface with your activity. You can export your transactions in no time, manage your expenses and get real-time notifications. Qonto also integrates with popular accounting tools.

When it comes to payment methods, Qonto gives you a French IBAN as well as debit cards. You can order physical or virtual cards whenever you want, customize limits and freeze a card. Qonto also supports direct debit and checks. Like many software-as-a-service products, you can also manage multiple user accounts and customize permission levels.

Apple pays millions in backdated taxes to French authorities

Apple has agreed to pay back a large sum in backdated taxes. The company has confirmed the information to the AFP and Reuters. According to L’Express, Apple could have paid as much as €500 million ($572 million) — the AFP also confirmed that sum.

“The French tax administration recently concluded a multi-year audit on the company’s French accounts, and those details will be published in our public accounts,” the company told Reuters. French authorities can’t confirm the transaction due to tax secrecy.

This isn’t the first time French tax authorities investigate on tech companies. Amazon also settled a dispute with French authorities back in February 2018.

In August 2016, the European Commission ruled that Apple had benefited from illegal tax benefits from 2003 to 2014. Like many global companies, Apple has been accused of optimizing its corporate structure to lower the effective corporate tax rate in Europe.

While Apple appealed the decision back in 2016 saying that everything was legal, the company finished paying back the fine in September 2018. There are now $16.4 billion (€14.3 billion) sitting in an escrow account, waiting for the appeal.

And it sounds like Apple should have paid more taxes in France in particular. French tax authorities focused on profits generated in France over the past ten years.

Last month, the French government announced that it would start taxing big tech companies in France even if they report profits in another country. This tax will be based on revenue generated in France. Other European countries could follow the same model.

127 member countries of the OECD are also discussing new taxation rules for big tech companies. This time, the OECD wants to force companies to report profits in all countries where they operate.

ezCater acquires GoCater to expand beyond the US

Catering marketplace company ezCater is already putting its big $100 million funding round to good use. The company is acquiring GoCater, a European marketplace that operates in the same field. This is ezCater’s first international expansion move.

If you’re in charge of ordering catered lunch at your office, you probably have heard about ezCater . The company lets you order breakfast, lunch or dinner for 10, 30 or maybe 100 people at once. This service could be particularly useful to impress a client, throw an office party, get lunch together during an off-site and more.

But ezCater doesn’t cook anything itself. The company is a marketplace and connects you with catering companies and big restaurants around you. In other words, ezCater lets you browse the menu of dozens of restaurants around you from the same website and place an order without picking up the phone.

Of course, ezCater didn’t invent catering. But catering is a fragmented industry with a lot of friction. It’s hard to know how much you’re going to pay in advance, it takes a lot of effort to find a new restaurant outside of your usual list. And restaurants could use a new way to promote their offering. Those are the perfect ingredients to create an online marketplace.

You may already know all the options around your office, but ordering through ezCater provides additional benefits. For instance, all your receipts are centralized in the same interface, which lets you get a clear overview of your spendings on catering.

You can also let other people order food for their clients and events. ezCater lets you set maximum amounts, tipping policies and more.

GoCater offers more or less the same thing, but in France and Germany. The company started as a spinoff from French startup La Belle Assiette. GoCater lets you create a whitelist of catering options. You can also set up an approval system so that the intern doesn’t order ice creams for everyone. Finally, GoCater clients only get billed once per month, even if companies order multiple times.

You pay the same price if you order through GoCater or the catering company directly. Catering companies end up paying a cut on GoCater orders. But the startup takes care of billing, accounting and accounts receivable. This way, you can focus on your core business instead of chasing money from past clients.

ezCater is an order of magnitude bigger than GoCater. ezCater works with 60,000 restaurants, while GoCater only has a few hundred restaurants on its platform. It’s worth noting that ezCater has been around for much longer.

But GoCater has one big advantage over ezCater — they have a team on the ground in Europe, ready to attract new restaurants and corporate clients. It’s clear that ezCater was looking for a way to get started in Europe, and GoCater seems like the right fit.

For now, the company will keep both brands after the acquisition. The teams will slowly merge the platforms into a single product.

“The entire GoCater team is staying, and we’re now going to rapidly expand the European team of the company — both the sales team for Europe and the tech and product team for the group,” GoCater founder and CEO Stephen Leguillon told me.

Trainline now gives you real-time train information in France

 Trainline’s European service (formerly known as Captain Train) is becoming your one-stop shop for French trains. The company has partnered with SNCF to get real-time data about trains, delays and your current location. You had to use SNCF’s official app before to get this kind of information. If you’ve used Trainline to book a ticket before, you know that the app can alert you… Read More

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Inside Station F, the startup megacampus that just opened in Paris

 Station F is the world’s biggest startup campus. Thousands of entrepreneurs are currently moving into the new building here in Paris. But if you’re still wondering what it actually looks like, we visited Station F and interviewed the two persons behind it — Roxanne Varza and Xavier Niel. Station F is a massive building that has been completely renovated and now features… Read More

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Tempow turns your dumb Bluetooth speakers into a connected sound system

 Meet Tempow, a French startup that can make your Bluetooth speakers more versatile. The company has been working on a new implementation of the Bluetooth protocol in order to let you play music from your phone on multiple speakers and headphones at once. Bluetooth speakers have become a common gift and a hit item in consumer electronics stores. Most people now have multiple Bluetooth speakers… Read More

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‘Welcome to the Jungle’ wants to create a media company about recruitment

welcome-to-the-jungle Welcome to the Jungle isn’t yet another recruitment company that is going to automagically find the perfect engineer for your startup. It’s a media company that wants to make recruitment sexy again. The company just raised $2.1 million from various business angels (€2 million) and is about to launch different verticals for different competitive industries. Welcome to the Jungle… Read More

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Parrot lays off 35 percent of its drone team

Parrot French company Parrot has had a rough year and missed its sales expectations. That’s why the company will lay off 290 employees who were working on drones. In total, Parrot currently has 840 employees on the drone team and more than a thousand employees in total. While the company isn’t just selling drones, it represents a good chunk of the business. But it looks like other… Read More

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