Checkout.com Triples Valuation To $15 Bn With $450 Mn Series C Fundraise From Tiger Global Management
The funding will be used to further grow its balance sheet and drive new innovative opportunities
The connected payments solutions provider Checkout.com on Tuesday announced that it closed a $450 million Series C fundraising round. This gives the business a post-money valuation of $15 billion, making it the fourth-largest fintech globally and EMEA's most valuable venture-backed business, as the business continues to expand across the globe.
The funding round was led by New York-based technology investor Tiger Global Management, which partners with dynamic entrepreneurs operating market-leading growth companies, including Facebook, LinkedIn, Spotify, ByteDance, and JD.com. Greenoaks Capital also joined the round along with participation from existing investors Insight Partners, DST Global, Coatue Management, Blossom Capital, Endeavor Catalyst, and Singapore's Sovereign Wealth Fund GIC.
"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. Our new investors bring a wealth of experience across payments, technology, and scaling companies – crucial knowledge for the next stage of our growth, as we continue to build our vision for the future of Connected Finance™," stated Guillaume Pousaz, chief executive officer and founder, Checkout.com.
The fundraise comes as the global economy looks beyond the COVID-19 pandemic. While many organizations have historically relied on one-size-fits-all payment systems, the need to drive improved performance, gain transparency across payments and extract valuable information from data is increasingly becoming a competitive differentiator.
The cloud-based unified platform enables merchants to manage payins and payouts at scale while achieving better performance and improved acceptance rates globally. Leading e-commerce businesses such as Farfetch, Mango, Victoria's Secret, L'Occitane and The Hut Group depend on Checkout.com for a fast, reliable, adaptable and safe platform that gives granular access to the data and pricing behind every transaction.
With a total of $830 million raised within the last two years, Checkout.com's readily available cash represents strong balance sheets across all global fintechs. This further strengthens the company's resilience as a regulated entity in numerous markets and as a financial partner to its merchants. It also allows for continued strategic investments and product developments, like the Checkout.com Payouts solution which saw exponential growth over the last year.
Checkout.com's transformative approach to payments and payouts has garnered its reputation as the most trusted technology provider behind many of the most valuable fintechs and cutting-edge businesses, including Klarna, Revolut, Transferwise, Coinbase, and eToro.
"We are excited to partner with Guillaume and Checkout.com as they continue to build innovative global payments and financial services platform trusted by leading internet companies. We believe the shift to digital commerce is still in the early stages, and Checkout.com's focus on developing a best-in-class technology platform has positioned them to be a leader in the industry for years to come," added Scott Shleifer, partner, Tiger Global Management.
Research from McKinsey & Company highlights the scale of the payments opportunity, with total global payments revenue reaching just under $2 trillion in 2019. Meanwhile, a recent report from Checkout.com in partnership with Oxford Economics revealed the scale of the challenge that many merchants face, with $20.3 billion lost to false declines in payments in 2019 alone and more than $12.7 billion handed from first choice merchants to their competitors. Additionally, customers who gave up on their intended online purchase completely resulted in more than $7.6 billion of missed opportunities for merchants.
In June 2020, Checkout.com announced its Series B which valued the business at $5.5bn, and was led by technology fund Coatue Management. In 2020, it also announced the acquisitions of ProcessOut and PinPayments, as well as a strategic investment in Thunes.