Fintech Startup Pipe Raises $250 Million at $2 Billion Valuation Just 10 Months After Public Launch

By Luigi Wewege Wednesday, May 19, 2021

Pipe, a global trading startup company for recurring revenue streams, announced today it raised $250 million in strategic equity funding to take its business valuation to $2 billion in less than a year since the launch. This is the fastest a fintech startup company has reached this level of business valuation in history.

Upward trending finance graph on a hundred dollar bill background.

Unprecedented Business Growth Recorded

The latest business funding round for the fintech startup company was headed by Greenspring Associates. Participation from other investors includes new business investors Morgan Stanley’s investing arm Counterpoint Global, CreditEase FinTech Investment Fund, SBI Investment, 3L, Sound Ventures, and Guy Oseary. Existing investors Fin VC, Next47, Marc Benioff's TIME Ventures, Alexis Ohanian's Seven Seven Six, MaC Ventures, and Republic, and others were also involved in the funding round.

Pipe has developed a trading platform used by companies with recurring business revenue streams seeking growth with no debt or dilution.

"By fundamentally changing the way entrepreneurs and organizations raise capital to fund their growth, Pipe has quickly emerged as one of the most important financial technology companies in the world. Our investment will further Pipe's mission to put companies in the driver's seat of their growth,” said Ashton Newhall, Managing General Partner at Greenspring Associates.

The startup noted that the business funding round was oversubscribed by $100 million. The company plans to use the business funds to continue developing its platform and bring new products across all recurring revenue verticals. Some of these products include property management companies, D2C subscription, telecommunications, sports and entertainment, biotech, healthcare, as well as venture capital (VC) fund management fees.

For companies with recurring revenue, some industry experts and customers believe that the debt-free platform developed by the fintech startup represents a business growth opportunity.

"Pipe has revolutionized the way many companies think about capitalization and for us they have been a trusted partner to help us exponentially grow our business. Their partnership has given us the ability to instantly provide customers flexible payment terms without the compounding risks to cash; and rapidly opened a largely untapped customer base," said Sachin Dev Duggal, chief executive of Builder.ai, before adding that Pipe’s platform “has been a pivotal force in our 5x monthly revenue growth journey.”

Pipe says that more than 4,000 companies are today using its trading platform. Tradable annual recurring revenues (ARR) on the platform have surged above $1 billion and are heading toward the $2 billion mark, with tens of millions of dollars in trading volume on a monthly basis.

The platform has now become an essential part of the company’s user base growth in the past year. The new business funding has helped reinforce its position as the world’s first and only revenue trading platform.

Last month, the fintech startup company announced it hired more employees to expand its sales and engineering departments. The new talent comes from Kabbage, a company that developed an automated platform that helps small enterprises get funding, and Stripe, the most valuable private fintech startup in the world.

Summary

Pipe announced today it secured $250 million in new business funding for its trading app led by Greenspring Associates, taking the company’s business valuation to $2 billion in less than a year since its launch.

About the Author


Headshot of Luigi Wewege

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 technology and innovation developments within the financial services industry. Luigi is also the published author of "The Digital Banking Revolution."

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