Flatpay, which facilitates card funds for SMBs, has joined the ranks of European fintech unicorns — or startups valued at greater than $1 billion — a milestone that has pushed a number of the area’s greatest exits. These embody opponents like Adyen, a Dutch fee processing large that continues to be far forward in scale. Nonetheless, Flatpay’s contemporary funding might assist it slender the hole.
Flatpay’s wager is that it will probably problem bigger gamers by charging small retailers a flat transaction fee to make use of its card terminals and point-of-sales methods. This give attention to a section that accounts for 99% of European companies has pushed speedy traction: The startup now claims round 60,000 prospects, up from 7,000 in April 2024.
Flatpay’s personal valuation has grown at a equally quick tempo. Now valued at €1.5 billion ($1.75 billion), the Danish startup reached unicorn standing in solely three years. However whereas CEO and co-founder Sander Janca-Jensen is happy with this accomplishment, he has his eyes on one other metric: annual recurring income (ARR).
“We crossed €100 million of ARR in October,” Janca-Jensen informed TechCrunch. He added that this quantity (roughly $116 million) is rising by practically €1 million a day ($1.16 million). “The plan for 2026 is to develop one other 300%, so hopefully depart the yr with between €400 and €500 million of ARR.”
To fund this bold development — because the startup continues to be unprofitable — Flatpay raised €145 million in its newest spherical (roughly $169 million). The spherical was backed by AVP and Smash Capital, in addition to Daybreak Capital, which had led the startup’s $47 million Collection B. German soccer participant Mario Götze additionally participated in that earlier spherical.
The newly raised capital will assist continued development in Flatpay’s present markets — Denmark, Finland, France, Germany, Italy, and the U.Ok. — in addition to additional enlargement into one or two new markets subsequent yr. Janca-Jensen declined to disclose which of them, however job postings counsel that the Netherlands could also be subsequent.
Flatpay at the moment has 1,500 staffers — or “flatpayers” — and plans to double that by the tip of subsequent yr. Growing headcount is a purpose the corporate places on the identical degree as income, stating in a press launch that it goals to develop each by 10x by 2029. This may occasionally appear uncommon, however they go hand-in-hand for the corporate, which onboards its prospects in particular person.
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This stems from its speculation that SMB house owners actively search for new options, even when their present methods are overpriced or inadequate. “That’s the place we come within the door,” Janca-Jensen mentioned. He means this actually — Flatpay exhibits up with pen and paper to clarify its pricing, and with card terminals for fast demos. “Each gross sales particular person has that suitcase.”
This hands-on method is what may assist Flatpay improve its share of a market that can also be coveted by legacy suppliers, massive fintech gamers like PayPal, Stripe, and SumUp, in addition to new entrants specializing in particular sectors, equivalent to hospitality. However the true differentiator may be the perception behind it: SMBs need simplicity, and Flatpay leaves them “able to go.”
Whereas this makes for larger buyer acquisition prices than common, particularly when mixed with 24/7 buyer assist, Janca-Jensen mentioned that creating demand permits the startup to develop a lot quicker than it could in any other case. In flip, this triple-digit development makes Flatpay’s emphasis on human interplay way more palatable to buyers, even throughout at present’s AI-obsessed investing cycle.
The corporate isn’t ignoring AI solely — it makes use of the know-how for real-time options and is experimenting with voice AI brokers. Flatpay can also be planning to develop additional into fintech with a banking suite that would come with playing cards and accounts. For Janca-Jensen, the bottom line is gradual adoption — in order that as a substitute of getting overwhelmed, SMB house owners can “eat the elephant one chew at a time.”
