Fintech/News/ Payments startup Checkout.com hits $5.5bn valuation The payments processor has tripled its valuation from its last raise. It is now the joint most-highly valued fintech in Europe. By Isabel Woodford 22 June 2020 Guillaume Pousaz, founder and CEO of Checkout.com Guillaume Pousaz, founder and CEO of Checkout.com \Fintech Is it finally European insurtech’s moment in the sun? By Amy O'Brien 14 February 2023 Fintech/News/ Payments startup Checkout.com hits $5.5bn valuation The payments processor has tripled its valuation from its last raise. It is now the joint most-highly valued fintech in Europe. By Isabel Woodford 22 June 2020 London-based payments startup Checkout.com has tripled its valuation and become Europe’s joint most-highest valued fintech, after closing its Series B funding round. The company brought in $150m in funding from investors at a $5.5bn valuation, buoyed by a strong boom in demand amid lockdown. The company says its transaction volumes in May were up by 250% year-on-year, with small businesses rapidly moving online. Founded in 2012, Checkout.com made headlines last year after a record $230m Series A round — the largest of its kind in Europe. Checkout.com helps thousands of merchants like Deliveroo process their online payments, connecting them with main card providers like Visa or Mastercard — claiming to be the fastest provider in over 150 currencies. The latest show of investor support will help Checkout.com take advantage of the current ecommerce boom and continue to rival Adyen — its Dutch competitor which went public in 2018 and has since seen its shares soar in value. “We’re the next Adyen,” Checkout.com chief executive Guillaume Pousaz told the Financial Times in 2018. The Series B funding was led by US hedge fund Coatue, along with participation from existing investors, including Insight Partners, DST Global, Blossom Capital and Singapore’s Sovereign Wealth Fund GIC. Checkout.com was bootstrapped for its first seven years by Pousaz, who is Swiss but is based in the UAE. Europe’s top fintechs The latest raise puts Checkout.com on par with fintech peers Revolut and Klarna in terms of valuation. Checkout.com joins a small handful of fintechs, including Klarna, which have enjoyed several years of profitability. Checkout.com posted $2.3m in global profits in 2018, building on revenues of $74.8m. This was a 60% jump in revenue from the previous year — a trend its chief executive says he plans to continue for several more years. Klarna posted profits of $10m and $561m in revenue in 2018. Meanwhile, Revolut posted heavy losses on revenues of £58.2m. Business-to-business payment infrastructure companies like Checkout.com aren’t usually headline grabbers. Yet this breed of fintech continues to be a key driver of investor returns according to sale figures. Last year, Sifted reported that fintech exits have raked in a reported €83bn since 2013. But a closer look showed that payment processor exits had raked in over half of that total — pulling in €55.6bn since 2013. Meanwhile, exits from non-payment fintechs added up to a slightly less impressive €27.4bn. There is a logic here; the payments sector has received the most funding of all fintech, naturally boosting its growth and sale prospects. It’s also one of the oldest sub-groups, giving it a maturity advantage. This also ties in with a broader theory about fintech in Europe: the more boring it sounds, the bigger the opportunity there is for making money. Related Articles 10 European fintechs with the biggest raises this year By Kim Darrah Click here to read more Let’s talk about Revolut’s new valuation By Isabel Woodford Click here to read more 18 fintechs that investors think will thrive post-lockdown By Isabel Woodford Click here to read more Most Read 1 \Healthtech Is Daniel Ek’s new body scanner worth the hype? Sifted tried it out 2 \Venture Capital VC diversity needs to change — and white men need to take responsibility 3 \Venture Capital New €3.75bn European Investment Fund pot to back late-stage VCs 4 \Sustainability Counteract closes £15m fund for carbon removal solutions 5 \Mobility Was the $5bn that VCs plugged into escooters worth it?