German digital banking start-up Penta is in talks with potential investors to raise fresh funding, Bloomberg reported citing people familiar with the matter.

The fintech is eying a valuation of between $453m and $567m, the sources said.

Penta is holding talks with existing and new investors for a new funding round and plans to reach an agreement by mid-2022.

Penta is a digital banking platform that caters to small and medium-sized businesses, as well as self-employed and freelance customers.

The valuation expected by Penta is a sign of investors’ appetite for fintechs even as equity markets across Europe have slumped after the central bank decided to roll back monetary easing and the rising tensions between Russia and the West over Ukraine.

Unlike several of its peers, Penta operates on a subscription model and the offerings include business account, German IBAN, debit cards, digital expense management and other financial solutions.

Founded in 2017, Penta has already closed two funding rounds and raised around $33.72m in investment.

Penta raised $9.1m in Series B extension in early 2021. It counts finleap, HV Capital, RTP Global, Presight Capital, S7V and VR Ventures, and ABN Amro Ventures as its backers.

In November 2021, Penta formed a partnership with SWK Bank to allow SMEs, self-employed and freelance customers to invest working capital at fixed interest rates.