FinTech: London-based Fintech Checkout.com Floats Venture Arm
Cashed up and profitable, Checkout is looking for deal-making opportunities.
Launched in 2012, fintech startup Checkout.com tripled its valuation to $5.5 billion in June 2020 when it collected $150 million in a Series B funding round. That round brought up its aggregate funds raised to $380 million and the available cash on its balance sheet to over $300 million. Add profitability (Checkout has been in the black since founding) to the mix and you have a very well-funded startup indeed. It’s therefore not surprising that Checkout is now investing in other fintechs. (Sifted)
Checkout.com – a fintech turned VC
Checkout.com is putting its cash arsenal to use via a venture arm floated this year, according to chief executive Guillaume Pousaz.
Speaking to Sifted, he said: “We’re profitable, we have a very strong balance sheet. If there’s a company we want to buy, but they won’t let us — you know, the founder still has eyes full of stars — then it’s better to try to invest in the company.”
Checkout made its maiden VC-type investment this year when it invested a sizable amount in Singaporean payments network Thunes.
It is looking for many more of such investment opportunities, preferring them to outright acquisitions.
However, acqui-hires are a different story and one that Checkout favors. As Pousaz says, the firm likes to pay for a team – “We don’t buy revenue.”
Though it appears that Checkout is emulating the VC-like moves made by Stripe, there could be a nascent trend forming here.
Checkout could be a pioneer among cash-rich fintechs that are using their surplus funds to invest in or acquire, other startups.
But there’s a qualifier here according to Pousaz: Checkout only struck deals that made sense to shareholders and where the business could logically complement its own operations.
Related Story: UK-based Checkout.com Lands $150M at a $5.5B Valuation
Latest Alternative Investment News
The People’s Bank of China published a draft set of rules on Wednesday for anti-trust regulation of the non-bank payment providers in the fintech sector. The draft is in the…
Filings out Wednesday show that the BlackRock Strategic Income Opportunities Portfolio and BlackRock Global Allocation Fund may invest in cash-settled bitcoin futures, among other assets. BlackRock (NYSE: BLK), the world’s…
AI is playing an increasingly bigger role in the management of wind energy, wind farms, and the maintenance of wind turbines through machine condition monitoring systems. Google (NASDAQ: GOOGL) predicts…
Harvest Portfolios Group Inc. completed last week the initial offering of Class A Units of the Harvest Clean Energy ETF (TSE: HCLN). The units of the ETF commenced trading on…