{"id":2747,"date":"2017-01-11T11:09:10","date_gmt":"2017-01-11T11:09:10","guid":{"rendered":"https:\/\/www.rsoftsolution.com\/blog\/izettle-raises-63m-more-at-a-500m-valuation-to-expand-from-mobile-payments.html"},"modified":"2017-01-11T11:09:10","modified_gmt":"2017-01-11T11:09:10","slug":"izettle-raises-63m-more-at-a-500m-valuation-to-expand-from-mobile-payments","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/izettle-raises-63m-more-at-a-500m-valuation-to-expand-from-mobile-payments.html","title":{"rendered":"iZettle raises $63M more at a $500M valuation to expand from mobile payments"},"content":{"rendered":"


\n<\/p>\n

The world of mobile payments continues to consolidate<\/a> and mature<\/a>, and today one of the leading players among European mobile payments startups\u00a0has raised a significant round of money to help keep itself on top. iZettle<\/a>, the Swedish company that offers a card reader that works with your smartphone or tablet, plus a suite of financial services for the small businesses, is announcing that it has raised \u20ac60 million ($63 million) in new funding.<\/p>\n

On top of this, iZettle has\u00a0appointed a new CFO, Maria Hedengren, who has quietly been with the company since last month, joining from online gambling specialist NetEnt.<\/p>\n

Jacob de Geer, the founder and CEO of the company, tells TechCrunch that about \u20ac45 million of the funding is coming in the form of debt from Victory Park Capital, the firm that has backed\u00a0a number of other financial startups<\/a>. The remaining \u20ac15 million comes from existing investors (there are 16 in all<\/a>, including Intel, Index, MasterCard and American Express) and is an extension of the company\u2019s Series D from 2015<\/a>. The company has raised about $235 million in funding to date.<\/p>\n

We\u2019ve confirmed also that iZettle\u2019s valuation\u00a0remains\u00a0at $500 million as before<\/a>.<\/p>\n

De Geer said that the idea behind the funding is to use it in part for acquisitions, particularly to continue expanding its business into more services beyond mobile payments across markets where it\u2019s already live. iZettle today is live across 10 countries in Europe, as well as Brazil and Mexico.<\/p>\n

\u201cPart of this will be used for acquisitions,\u201d he said. \u201cWe\u2019re looking at many different things. We have gone from being \u00a0a mobile payments company to providing financial solutions for small businesses.\u201d iZettle last year acquired intelligentpos<\/a> to add inventory, loyalty programs and customer flow analytics to its platform.<\/p>\n

Acquiring companies would also tap into a\u00a0wider trend in the area of financial technology, he said. \u201cThere are a few big players in the payments world right now, but also many small companies, struggling to find the right and healthy business model,\u201d he said. \u201cThere are interesting ways of combining these companies today.\u201d<\/p>\n

iZettle does not disclose its revenues, but it is not yet\u00a0profitable and in 2015 (the most recent published accounts), its losses of 295 million kroner<\/a>\u00a0($41.3 million) was nearly as high as its revenues of 300 million kroner. De Geer said that the company overall has been adding 1,000 new businesses to its platform each day (no word on how many are \u2018lost\u2019 \u2014 that is, in active on iZettle\u2019s network. \u201cThere are so many opportunities for us to leverage this,\u201d de Geer said.<\/p>\n

While Square entered the public markets in the U.S. before it turned profitable and has seen its stock rollercoaster (currently it\u2019s at a relatively good point), de\u00a0Geer noted that his company is not getting pressure from investors to do the same.<\/p>\n

\u201cEuropean companies do have a slightly different approach when it comes to profitability and going public when compared to U.S.\u00a0companies,\u201d said de Geer. \u201cWhen you consider the amount\u00a0of capital raised and the valuations in the U.S.,\u00a0typically you don\u2019t see this in Europe. Even though iZettle is a company that has used VC money for growth purposes, it can\u2019t be compared to its U.S. equivalents. A clear path to profitability by the end of 2017 is one of our core expectations.\u201d <\/span><\/p>\n

Nevertheless, putting a new CFO (who came from a public company) is one definite sign of how the company intends to scale\u00a0in its next phase.<\/span><\/p>\n

\u201cWe have been following the impressive growth of iZettle since its inception. iZettle is an innovator and a clear market leader in Europe and we want to be part of its next chapter of growth. 2017 promises to be a vibrant and buoyant time for both iZettle and its market,\u201d said Gordon Watson, Partner at Victory Park Capital, in a statement.<\/span><\/p>\n

<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/ATPyMxxfbVQ\/<\/p>","protected":false},"excerpt":{"rendered":"

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