French fintech Qonto nears $5 billion valuation after new fundraising

FILE PHOTO: Euro coins are seen in front of displayed France flag in this picture illustration taken May 7, 2017. REUTERS/Dado Ruvic/Illustration

PARIS (Reuters) - Qonto, a French online bank for small and medium-sized companies (SMEs), said on Tuesday it had raised 486 million euros, bringing its valuation to 4.4 billion euros ($4.98 billion), in another sign of the good health of the French fintech sector.

France has recorded a streak of large private equity fundraising, as the combination of low interest rates, investment incentives and stay-at-home measures due to the COVID-19 pandemic have boosted digital companies.