Danish startup FlatPay joins the membership of European fintech unicorns to trace | TechCrunch

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 among the area’s greatest exits. These embody opponents like Adyen, a Dutch fee processing big that continues to be far forward in scale. Nonetheless, Flatpay’s recent funding may assist it slim the hole.

Flatpay’s guess is that it will possibly problem bigger gamers by charging small retailers a flat transaction fee to make use of its card terminals and point-of-sales programs. This concentrate on a section that accounts for 99% of European companies has pushed fast 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 advised TechCrunch. He added that this quantity (roughly $116 million) is growing by practically €1 million a day ($1.16 million). “The plan for 2026 is to grow another 300%, so hopefully leave the year with between €400 and €500 million of ARR.”

To fund this formidable 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 Progress 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 help 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 12 months. Janca-Jensen declined to disclose which of them, however job postings recommend that the Netherlands could also be subsequent.

Flatpay at the moment has 1,500 staffers — or “flatpayers” — and plans to double by the tip of subsequent 12 months. Growing headcount is a objective 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 increasingly appear uncommon, however they go hand-in-hand for the corporate, which onboards its prospects in individual.

This stems from its speculation that SMB homeowners actively search for new options, even when their present programs are overpriced or inadequate. “That’s where we come in 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. “Every sales person has that suitcase.”

This hands-on strategy is what may assist Flatpay enhance its share of a market that can also be coveted by legacy suppliers, giant fintech gamers like PayPal, Stripe and SumUp, in addition to new entrants specializing in particular sectors, corresponding to hospitality. However the true differentiator may be the perception behind it: SMBs need simplicity, and Flatpay leaves them “ready to go.”

Whereas this makes for larger buyer acquisition prices than common, particularly when mixed with 24/7 buyer help, Janca-Jensen mentioned that creating demand permits the startup to develop a lot sooner than it will in any other case. In flip, this triple-digit development makes Flatpay’s emphasis on human interplay rather more palatable to buyers, even throughout at present’s AI-obsessed investing cycle.

The corporate isn’t ignoring AI totally — it makes use of the expertise for real-time options and is experimenting with voice AI brokers. Flatpay can also be planning to increase 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 homeowners can “eat the elephant one bite at a time.”