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 $110 million comprised both debt and equity capital. Zilch, the UK-based BNPL platform has raised an additional $110 million from Goldman Sachs and DMG Ventures. The funding is part…
A market survey by alternatives technology provider Vidrio Financial shows that fears of inflation have helped move substantial fund allocations during the first half of 2021 to alternative assets such…
Global X, the New York-based ETF provider and subsidiary of $560 billion investment manager Mirae Asset, has filed with the SEC for permission to launch a bitcoin ETF titled the…
Four news bites that show cryptos are hanging on, recent crashes notwithstanding. From bitcoin ATMs to crypto FOMO, here goes….