The new funding round makes it the 11th-largest privately-backed startup in the world
Payments business Checkout.com has become Europe’s largest startup after a fundraising round led by Tiger Global Management that nearly tripled its valuation to $15 billion.
Greenoaks Capital also put money into the business, along with existing investors Insight Partners, Coatue Management and DST Global, bringing the London-based company $450 million in new funding overall, according to Chief Executive Officer Guillaume Pousaz.
Checkout.com has seen its growth climb with the acceleration of the broader e-commerce industry in 2020. The company processes payments for businesses such as Pizza Hut Inc., Coinbase Inc. and Sweden’s Klarna AB.
It raised money at a $5.5 billion valuation last year and the new funding round makes it the 11th-largest privately-backed startup in the world. The next biggest in Europe would be Chinese-owned Global Switch Holdings Ltd., a London-based data centre operator valued at just over $11 billion, and Klarna, according to CB Insights.
Checkout.com competes with Adyen NV, which went public in 2018. Pousaz said in an interview that the businesses are different because Checkout.com is online only, while Adyen also handles in-store payments.
Pousaz said he has no intention to take the company public this year. While a 2022 initial public offering is a possibility, “there’s no pressure to go public” from investors and the company has no firm plans to do so, he said.
About half of Checkout.com’s business comes from Europe, particularly the U.K. and France. The company also does business in the Middle East and Asia and is looking to expand in the U.S.
It made several acquisition-related hires last year and expects to buy more technology teams this year. Checkout.com is also opening offices in New York and Denver.