Checkout.com recorded another success as it closed a new $450 million funding round, led by Tiger Global Management, while Greenoaks Capital also participated in the Series C funding.
Fintech Market Booming
Based on the latest business figures, Checkout.com — which offers a variety of services, including accepting and processing transactions as well as fraud detection — is worth about $15 billion. It is the fourth-largest fintech company in the world. The startup hired around 500 new employees in 2020 and is looking to hire 700 more in 2021.
“Payments affect everything from the customer journey to a business’s ability to enter new markets or launch new products. This latest fundraise reflects our market-leading position and the size of our aspirations as we accelerate in our mission to empower merchants to build better products, drive more revenue and create innovative business models by reimagining interactions with financial services,” said Guillaume Pousaz, founder and chief executive of Checkout.
The business strives to increase its product’s customizability as much as possible to help clients integrate it into its own product more easily.
The startup started operating back in 2012, and at first, it started expanding gradually. It continued to grow progressively until its Series A round, when it raised $230 million at a $2 billion valuation, one of the biggest fundraising rounds ever in Europe. A year later, the company secured an additional $150 million in another round at a $5.5 billion valuation.
Even though the company could go on without fundraising, Pousaz said receiving support from VC firms such as Insight, DST, Coatue, Tiger Global Management, and others represents a form of validation.
However, if the startup wishes to continue expanding globally, Checkout.com needs a lot more cash.
“Today, we process billions every week. And when you process over a billion euros per week, your cash flow on your bank account increases significantly. So you need to be well-capitalized for regulators,” Pousaz said.
The company is currently regulated in Britain, France, Brazil, Singapore, Hong Kong, etc., while it is also looking to expand its business into India and the Philippines, where companies are required to already have cash on their balance sheet in order to obtain the license from the local business regulators and having cash in a bank account in another country is apparently not enough.
Checkout.com, which is now considered to be the fourth largest fintech firm in the world, closed a $450 million Series C round, led by Tiger Global Management.
Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.