Stripe leads $35m round for New York payments start-up Check

Stripe has led a $35m funding round in payments start-up Check as the fintech company ramps up its investment strategy.

New York-based Check builds payroll software. It was only founded in 2019 but has now raised $44m from investors, which include Thrive Capital and Bedrock Capital.

The deal marks the latest move in an investment spree by Stripe, as the Collison brothers’ company led a $102m round in San Francisco payments start-up Fast earlier this week. Stripe has invested in many fintech start-ups in recent years, including Monzo, Paymongo, Step and Pilot.

Check’s founders were previously behind Oyster, a ‘Netflix for books’ subscription service that was acquired by Google in 2015. Check builds APIs for integrating payroll features into other software suites like ERP and HR software.

“We built Check to enable innovation in the way people get paid, and I’m thrilled to share our public launch,” chief executive Andrew Brown said this week. “With Check, developers can now build wage payments into their apps just as easily as accepting an online payment.”

Chris Sperandio, from corporate development at Stripe, said Check is “uniquely suited to continue innovating in this domain and make paying people simple”.

“Check has developed an elegant solution that abstracts complexity, reduces risk and removes friction in the payroll process that every company has to navigate,” he added.

Investments such as these may help Stripe keep its finger on the pulse of what it is happening among start-ups in the payment space. It may also give the company a heads up on start-ups that might be worth acquiring later down the road.

It most recently acquired Nigerian payments start-up Paystack for $200m, after previously leading its Series A funding round. In 2019, Stripe bought Dublin’s Touchtech Payments for an undisclosed amount.

The post Stripe leads $35m round for New York payments start-up Check appeared first on Silicon Republic.

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Checkout.com was founded by a college dropout and just became Europe's most valuable startup after raising $450 million at a $15 billion valuation

Summary List PlacementPayments firm Checkout.com is now Europe’s most valuable startup after raising $450 million at a $15 billion valuation. 
It’s one of the largest recent funding rounds in Europe and makes the company the fourth most valuable privately owned fintech worldwide.
Founded by college dropout Guillaume Pousaz in 2012, Checkout.com raised Europe’s biggest ever Series A round of $230 million in May 2019, at a valuation of $2 billion. That was followed by a $150 million Series B in June last year at a $5.5 billion valuation.
Checkout.com powers the payments process of major companies like soon-to-be-public food delivery unicorn Deliveroo, fintech giant TransferWise, and Adidas.
“We had an exceptional year last year, particularly towards the end of 2020 with around $1 billion a week of e-commerce volumes,” Checkout’s founder and CEO Pousaz told Insider. “We had no plans to raise but had remained in touch with investors who have a long-term view of the business. This is going to be a generation-defining company.” 
The startup claims to have added more than 500 new enterprise clients in 2020 including Coinbase, Pizza Hut, H&M, Grab, Klarna, Farfetch, and messaging app Telegram. The company’s competitors include Stripe, last valued at $36 billion, and Dutch payment firm Adyen, which went public in 2018.
Checkout’s financial filings for the full-year 2019, parts of which have been examined by Insider, show revenue of $146.4 million, up from $74.8 million in 2018. Adjusted EBITDA was $5.47 million for the year. The firm’s full filings are not yet publicly available, and were due to be filed with the UK’s company register on 31 December. Pousaz said that the accounts were filed on time at the end of December, but could take two weeks to appear.
Its Series C was led by hedge fund giant Tiger Global Management with participation from Greenoaks Capital and existing investors amid a boom in interest in fintech startups from the private equity world. Checkout.com claims to have tripled its payment processing volume during 2020 as e-commerce boomed during the pandemic. 
The global payments market was worth just under $2 trillion in 2019, according to research from McKinsey. Checkout’s staggering valuation is almost triple the price it reached six months ago.
“We’ve never been chasing league tables and have always been very disciplined in our approach,” Pousaz added. “Our product in the hands of some of the most forward-thinking merchants in the world which is a validation in our business. Our investors understand public markets and are investing in the industries of tomorrow.”
Amid a growth in demand for fintech, high valuations are everywhere. Payments rival Stripe could seek a $100 billion valuation in its next round, Bloomberg reported. Similarly, US challenger bank Chime hit a new $14.5 billion valuation last year while buy now, pay later giant Klarna raised $650 million at a near $11 billion valuation in September 2020.
When asked about the hot IPO market and Checkout’s chances of going public, Pousaz said: “It’s certain that we will be a public company, we have public market investors on our cap table but there is no pressure on us. The reality is that our Series A was around 20 months ago so our timing is dependent on our roadmap.”SEE ALSO: Fintech startups like Revolut and Luno are seeing a boom in demand from consumers rushing to invest in cryptocurrencies amid major bitcoin interest
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