(Bloomberg) — Japan’s SBI Holdings Inc. has agreed to take a more than 70% stake in Solaris SE as part of a new round of financing for the German fintech company, according to a person familiar with the matter.

Solaris secured about 100 million euros ($103 million) from SBI for the stake and will also raise money from German stock exchange operator Boerse Stuttgart and existing investors, bringing the total funds raised to about 150 million euros, the person said and asked not to be identified discussing internal information. Other elements such as new AT1 bonds are also part of the deal, the person added.

“Solaris has reached an important milestone in its financing process,” a Solaris spokesperson said via email on Monday. “A group of investors and partners developed a coordinated financing concept that was submitted to our shareholders for approval,” he said, without naming the investors.

“The final investment agreement is expected to be finalized this month,” he said.

Spokespeople for SBI and the Stuttgart Stock Exchange initially did not comment on this.

The money will secure funding until Solaris is expected to reach profitability in about two years, the person said. SBI led a €96 million funding round in March.

According to Pitchbook, Solaris was worth about $1.6 billion in 2021.

Solaris, which provides white-label services to other lenders, is struggling to break even due to a dispute with German financial regulator BaFin, write-downs on an acquisition and costs related to adding a portfolio of credit cards from German automobile club ADAC. As Bloomberg News reported last month, it cut its workforce from more than 700 to about 450 to cut costs.

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