D.he crown for Europe’s most valuable fintech startup is now clearly going to the British payment service provider Checkout.com. In a new round of financing, investors valued the rapidly growing company, which was founded just before 2012, at $ 15 billion. Investors, led by Tiger Global Management, gave him a capital injection of $ 450 million for a stake. This was announced by the London-based start-up of CEO Guillaume Pousaz on Tuesday.
The 15 billion valuation almost triples the last round of funding just seven months ago. In mid-2020, Checkout.com raised $ 150 million from financiers who valued it at $ 5.5 billion. In the previous year, investors only valued the start-up at $ 2 billion. Checkout.com has now left the previous top fintechs, the Swedish payment service provider Klarna and the British digital bank Revolut far behind. Klarna and Revolut were recently valued at $ 10.6 billion and $ 5.5 billion in funding rounds.
Corona gives momentum
Checkout.com is benefiting from the rapid growth of e-commerce, internet ordering companies and delivery services that use Checkout.com’s electronic cash register to process their payments. The corona crisis did not put a damper on the industry, it gave it even more momentum. “Nobody would have thought at the beginning of 2020 that the year would be like this,” said Pousaz euphorically in a recent interview. In the past two years, the British have raised an impressive sum of 830 million dollars from investors.
Checkout.com’s customers include, for example, the online cosmetics and consumer goods retailer The Hut Group, which directs hundreds of online order sites from Manchester, the pizza supplier Pizza Hut and the fashion retailer H&M, but also fintech competitors such as Coinbase.inc, Klarna and Revolut. The market size of the payment processing industry is estimated at up to $ 2 trillion.
A major competitor is the Dutch payment processor Adyen, which went public two years ago. Currently, investors rate Adyen at 53 billion euros. Checkout boss Pousaz emphasizes the differences. His company focuses entirely on online business, while Adyen also manages payment processing for brick and mortar stores. Pousaz said the startup will ultimately also go public. But he doesn’t see any rush or pressure for this step.
Checkout.com makes around half of its sales in Europe, especially in Great Britain and France, the rest is spread across countries in Asia and the Middle East. Expansion to America is planned. The fintech office recently opened in New York, with Denver as a second location. In America, the British are competing with the young fintech giant Stripe, based in San Francisco. This was recently valued at $ 36 billion in a private financing round. So far, Checkout has only a thousand employees worldwide. New appointments of around 700 employees are planned.