Businesshala News Exclusive | Fintech Startup Checkout.com Scores $40 Billion Valuation in Latest Share Sale

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$1 billion deal puts digital-payment processor ahead of all but a few other startups

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Since its first fundraising round in 2019, Checkout.com’s valuation has grown 20x and now exceeds Instacart Inc. and a handful of other startups.

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Checkout.com transfers money between shoppers and online merchants, a business that flourished during the COVID-19 pandemic. The company’s payment volume tripled in both 2020 and 2021, chief executive officer Guillaume Pousaz said, adding that customers such as Netflix Inc. and Klarna Bank AB have benefited from higher demand for their services.

In recent months, however, online sales have slowed with the easing of pandemic restrictions and a return to physical stores. According to research firm MoffettNathanson, global e-commerce growth is expected to fall from 20% in 2022 to 18% in 2021, according to a 2019 return of momentum. With a broad investor withdrawal from tech stocks in advance of higher interest rates, Checkout.com’s publicly traded competitors, such as Adyen NV and PayPal Holdings Inc. contributed to the sell-off in shares of

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“It cannot be denied that there is a lot of volatility in the market,” said Mr. Pusaz. “These are short-term factors. Everything we do at the checkout is for the long term.”

Startup investors may take time to adjust to changes in the value of tech companies in the public markets, said Deven Parekh, managing director of Insight Partners and a member of the board of directors of Checkout.com. But recent market corrections have been short-lived, he said, and Checkout.com still has room to take market share from traditional banks and payment processors. “I am taking a five-year approach,” said Mr. Parekh.

Checkout.com plans to use more of the new capital to fuel expansion in the US was appointed to do. , Many of the company’s top executives and investors now live in the US

It also plans to increase its business catering to cryptocurrency companies. Exchanges like Coinbase Global Inc.

and wallets like Novi from meta platforms Inc.

Use Checkout.com to move customers’ money in and out of digital currencies. Crypto and financial-technology transactions account for more than half of Checkout.com’s payment volume, Ms Dufetel said.

The company plans to eventually pursue an initial public offering, but is not yet ready to do so. Mr Pusaz said he does not feel investor pressure to go public anytime soon since he first raised the money less than three years ago. He also selected investors like Franklin Templeton who are comfortable with their bets long after the IPO.

“We will live a long life in the public market,” said Mr. Pusaz. “We have a few years before we get there.”

Write Peter Rudegeair at [email protected]

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Guillaume Pousaz, Chief Executive Officer of Checkout.com, said, “It cannot be denied that there is a lot of volatility in the market. These are short-term factors. Everything we do at Checkout is for the long term. ” He was incorrectly cited in an earlier version of this article. (corrected January 12)

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