Payments company Checkout.com isn’t just a unicorn — it closed a founding $1 billion Series D round. After today’s round, the company is now valued at $40 billion.
This is a significant increase compared to last year’s assessment. Through the C round, the company raised $450 million at a valuation of $15 billion – that’s a 167% valuation jump in 12 months that isn’t too bad.
Checkout.com is building an integrated payments company – serving as a gateway, acquirer, risk driver and payment processor. The company allows you to process payments directly on your site or in your app, but you can also rely on hosted payment pages, create payment links, etc.
It supports card payments, Apple Pay, Google Pay, PayPal, Alipay, bank transfers, SEPA direct debit, and even cash payments through various local networks.
Last year, the company also added the ability to issue payments. Checkout.com customers can send money to a bank account. It also supports payments to a card on the Mastercard or Visa network. For example, TikTok and MoneyGram were using Checkout.com’s checkout feature.
Unlike Stripe, Checkout.com focuses specifically on large global institutional merchants with a large transaction volume. Some of the company’s clients include Netflix, Farfetch, Grab, NetEase, Pizza Hut, and Shein. The company also contributes to the payments portfolio of several unicorn fintech companies such as Klarna, Qonto, Revolut, and WorldRemit.
When it comes to a funding round today, buckle up because the list of investors is very long. Investors who took part in the round included Altimeter, Dragoneer, Franklin Templeton, GIC, Insight Partners, Qatar Investment Authority, Tiger Global, Oxford Endowment Fund and “another large West Coast mutual fund manager,” she wrote. The company in its announcement.
Some of the company’s existing investors are also involved, such as Blossom Capital, Coatue Management, DST Global, Endeavor Catalyst and Ribbit Capital.
Why did Checkout.com raise so much money? Because they can. The company says it has been profitable for several years, which means investors are only adding money to the balance sheet for long-term growth. Checkout.com only had to hand over 2.5% of the company’s stock for $1 billion.
“By combining our elegant technology suite, industry expertise, and an ‘extra miles’ approach to service over the past decade, we have built deep partnerships with some of the world’s most innovative companies,” founder and CEO Guillaume Pousaz said in a statement. . “Our Series D is validating this work – but as we are still in ‘chapter zero’ of our journey, it will also advance our efforts to unlock the huge untapped opportunity ahead.”
The company processed hundreds of billions of dollars in payments in 2021 alone. It tripled its transaction volume for the third year in a row and now has 1,700 employees in 19 countries.
Next, Checkout.com wants to focus specifically on the US market. With its headquarters in London, the company originally focused on the EMEA region. However, while trying to work with global institutional traders, having a solution that works in all markets can be a huge selling point for future customers.
“Just like our approach in EMEA, we will maintain our focus on the enterprise – particularly fintech, software, food delivery, travel, e-commerce, and cryptocurrency merchants,” said Céline Duffietel, Chief Financial Officer of Checkout.com in a statement. To help our US customers grow domestically and internationally, and help our non-US customers to expand into the market here.”
With today’s funding round, Checkout.com will surely hire more people and sign new clients. But the company does not plan to stand still because it wants to launch new products.
The ability to issue payments created new opportunities. In particular, Checkout.com plans to support marketplaces and payment facilitators later this year. It will be a one-stop solution with identity verification and the ability to split payments so that market operators can keep a cut in every transaction.
Market customers will also be able to hold their funds directly in the market thanks to the new Treasury as a Service feature. It opens up a lot of possibilities as markets can include financial services directly in their products.
Stripe announced the Stripe Locker last year. Shopify uses the Shopify Balance feature. It proves once again that both Stripe and Checkout.com want to cover a larger part of the payment chain.
In addition to the new products, Checkout.com recognized that web3 represented an opportunity in the market. The company already has some payment features for many crypto companies, such as Coinbase, Crypto.com, FTX, MoonPay, and Novi from Meta.
But creating bridges between fiat and cryptocurrencies is only one part of the web3 equation. Checkout.com is also beta testing a solution that could allow its customers to settle transactions for merchants that use cryptocurrency. In other words, Checkout.com for web3 can be Checkout.com