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 a few of the area’s largest exits. These embody opponents like Adyen, a Dutch cost processing large that continues to be far forward in scale. Nevertheless, Flatpay’s recent funding may assist it slim the hole.

Flatpay’s wager is that it may possibly problem bigger gamers by charging small retailers a flat transaction charge to make use of its card terminals and point-of-sales methods. This give attention to a phase that accounts for 99% of European companies has pushed speedy traction: the startup now claims round 60,000 clients, 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 pleased 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 instructed TechCrunch. He added that this quantity (roughly $116 million) is rising by practically €1 million a day ($1.16 million). “The plan for 2026 is to develop one other 300%, so hopefully go away the 12 months with between €400 and €500 million of ARR.”

To fund this bold 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 Development and Smash Capital, in addition to Daybreak Capital, which had led the startup’s €$47 million Sequence B. German soccer participant Mario Götze additionally participated in that earlier spherical.

The newly raised capital will assist continued development in Flatpay’s present markets — Denmark, Finland, France, Germany, Italy, and the U.Ok. — in addition to additional growth into one or two new markets subsequent 12 months. Janca-Jensen declined to disclose which of them, however job postings counsel that the Netherlands could also be subsequent.

Flatpay at present has 1,500 staffers — or “flatpayers” — and plans to double by the top of subsequent 12 months. Growing headcount is a aim the corporate places on the identical stage as income, stating in a press launch that it goals to develop each by 10x by 2029. This will likely appear uncommon, however they go hand-in-hand for the corporate, which onboards its clients in individual.

This stems from its speculation that SMB house owners actively search for new options, even when their present methods are overpriced or inadequate. “That’s the place we come within the door,” Janca-Jensen mentioned. He means this actually — Flatpay reveals up with pen and paper to clarify its pricing, and with card terminals for immediate demos. “Each gross sales individual has that suitcase.”

This hands-on method is what would possibly assist Flatpay improve its share of a market that can also be coveted by legacy suppliers, massive fintech gamers like PayPal, Stripe and SumUp, in addition to new entrants specializing in particular sectors, corresponding to hospitality. However the actual differentiator could be the perception behind it: SMBs need simplicity, and Flatpay leaves them “able to go.”

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

The corporate isn’t ignoring AI fully — 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 hot button is gradual adoption — in order that as a substitute of getting overwhelmed, SMB house owners can “eat the elephant one chew at a time.”