One Zero to raise $100m led by Deutsche Bank

• Published date: 29 October 2023

As far as is known, the bank is seeking a higher valuation than the $320 million in its most recent financing round. One Zero had sought to raise $100-200 million at the start of the year but was forced to lower the amount. "Globes" has learned that the bank is currently making presentations to investors overseas, and Deutsche Bank is expected to lead the financing round

Digital bank One Zero is still a loss making venture. According to the forecast presented by the bank to investors in the fundraising, it has set itself the target of achieving profitability in the fourth quarter of 2024. In the presentation to investors, the bank estimates that 75% of the funds from the current financing round will be used for investment in operations in Israel, and the rest for its planned operations in Europe. The first country to which it intends to expand is Italy, with the launch of operations there expected in the second half of 2025. In June 2023, the bank began the process of obtaining regulatory approvals in Italy.. Potential in Italy

One Zero aims to establish itself in 4-5 European countries in the coming years. It is believed that, apart from Italy, One Zero will try to establish operations in Spain and possibly also Switzerland, France and Germany, and later to expand to the US. In Italy, the bank writes in its presentation to investors, there is a potential of about 2.7 million customers whom the bank is targeting, with "high growth in digital." A market source told "Globes" that after receiving approval in Italy, it will be easier for the bank to "obtain regulatory approval very quickly in other countries as well." Meanwhile, One Zero has already appointed a manager for operations in Italy.

As of today, One Zero has, according to the source, over 80,000 customers in Israel. The bank estimated earlier this year that when it reaches 250,000 customers it...