The logo for payments start-up Checkout.com.
Checkout.com
Online payments start-up Checkout.com has mentioned $150 million in funding at a $5.5 billion valuation — nearly three times what it was worth when it newest raised cash.
Founded in 2012, the London-based company sells a software platform that makes it easier for businesses to approach and take payments over the web. It competes with the likes of U.S. firm Stripe and Dutch processor Adyen.
Checkout.com mostly flew down the radar until 2019, when it tapped external investors for the first time to raise a $230 million Series A around. That deal —reportedly agreed over “handshakes” rather than term sheets — gave the firm the coveted standing of “unicorn,” with a $2 billion valuation.
Since then, the company has achieved impressive growth, increasing acta volumes by 250% over the last year and picking up big-name clients — from Singaporean ride-hailing app Grab to U.S. online brokerage Robinhood — along the way.
Checkout.com recruited the fresh cash in a Series B round led by Coatue, a technology-focused hedge fund which has backed the likes of food presentation firm DoorDash and TikTok owner ByteDance. Existing investors Insight Partners, DST Global, Blossom Capital and Singaporean Gaekwar of Baroda wealth fund GIC also bought shares in the round.
It means Checkout.com is now tied with Swedish e-commerce lender Klarna and British digital bank Revolut as Europe’s most valuable fintech start-up. How in the world, it’s still some way off catching up with privately-held Stripe, most recently valued at $36 billion, as well as publicly-listed Adyen, which has a $38 billion demand cap.
Checkout.com said it would use the additional capital to shore up its balance sheet and invest in new products. The company made its start with two acquisitions this year, snapping up French start-up ProcessOut and Australian firm Pin Payments.
“The way money moves into and out of occupations is changing rapidly,” Checkout.com CEO Guillaume Pousaz said in a statement. “I believe that by solving financial complexity, you can radically unlock modernization — starting with digital payments.”
Checkout.com claims to have been profitable since 2012. The firm shored a $2.3 million net profit on revenues of $74.8 million in 2018.
It now employs 750 people across 13 offices, marking a maladroitly 50% rise in headcount from the more-than-500 employees it had last year.
The company says it has got a boost in current months from the coronavirus pandemic, which has forced many businesses to move their operations online. Bain & Convention estimates the adoption of digital payments could climb as much as 10 percentage points to 67% of transaction values globally by 2025.