Payments company Checkout.com is picking up once again. The company has closed the round of the $ 450 million series with Tiger Global Management, which is also participating in the round – Greenox Capital and all existing investors.
If you are not familiar with the company, Checkout.com Wants to build a one-stop shop for everything related to payments, such as accepting transactions, processing them and detecting fraud. It focuses on large merchants and tries to make its product as customizable as possible so that you can integrate it into your product as an infrastructure partner.
The company’s fundraising story in particular is jaw-dropping. The startup was founded in 2012 in London. First, it grew slowly and organically. Each time it generated little revenue, and employed more people. “We can hire an employee this month. Now we can hire two employees this month On ClearTips Discharge said that while thinking about the early days of the company.
But Checkout.com continued to grow and grow until it picked up one of the biggest Series A rounds for a European company – $ 230 million at a $ 2 billion valuation. Exactly one year later, Checkout.com added $ 150 million to the funding at a $ 5.5 valuation.
Checkout.com has been valued at $ 15 billion based on today’s funding round. According to the startup, it is now the fourth largest fintech company globally.
In January 2020, Checkout.com had 440 employees. It ended by 2020 with 940 employees. And this year, the company plans to hold an additional 700 people.
While Checkout.com didn’t really need to be raised to survive, Pusaz says VC firms are a form of recognition. Suddenly, you can talk with great potential if you are supported by Insight, DST, Kotyu, Tiger Global Management, etc.
And yet, the company needs too much money on its bank account to expand to more countries. “Today, we process billions every week,” Pusaz told me in December. “And when you process more than one billion euros per week, your cash flow on your bank account increases significantly. Therefore you need to be well capitalized for regulators. “
Technically, there is not a single bank account that holds the company’s cash. Checkout.com is regulated in the UK, but also in France, Brazil, Singapore, Hong Kong, etc. and the company is working on connecting India, the Philippines. And it turns out that you need cash on your balance sheet in the Philippines if you want to get a license from a local regulator – it doesn’t matter if you have a ton of money in your bank account in London. So raising capital can be helpful.
But why do investors want to hand over more money? “At any point you have a lot of visibility as to what your next year is going to look like,” Pusaz told me. “This is something that investors love because you can show them your pipeline and all your customers in your pipeline. If you forecast on the pipeline, it gives you a good idea of how much you are going to produce in the coming year.
“For example, I can tell you right now that we will grow at least 80% in 2021,” he said. And it is based only on customers who are currently in the process of integrating Checkout.com. The company has already tripled its payment processing volume in 2020 compared to 2019.
In many ways, Checkout.com tries to make predictions like a public company. It is not focused on the runway because it is EBITDA profitable. Instead, it tries to reinvest a lot of its revenue into the company. “We do not generate $ 50 million in EBITDA, far from it. But we make million dollars in double digits.
With today’s funding round, the company will open two new offices in the US. In addition to San Francisco, Checkout.com will have offices in New York and Denver.