Danish startup FlatPay joins the club of European fintech unicorns to track

Flatpay, which facilitates paper payments for SMBs, has joined the ranks of European fintech unicorns — oregon startups valued astatine much than $1 cardinal — a milestone that has driven immoderate of the region’s biggest exits. These see competitors similar Adyen, a Dutch outgo processing elephantine that remains acold up successful scale. However, Flatpay’s caller backing could assistance it constrictive the gap.

Flatpay’s stake is that it tin situation larger players by charging tiny merchants a level transaction complaint to usage its paper terminals and point-of-sales systems. This absorption connected a conception that accounts for 99% of European businesses has driven accelerated traction: the startup present claims astir 60,000 customers, up from 7,000 successful April 2024.

Flatpay’s ain valuation has grown astatine a likewise accelerated pace. Now valued astatine €1.5 cardinal ($1.75 billion), the Danish startup reached unicorn presumption successful lone 3 years. But portion CEO and co-founder Sander Janca-Jensen is arrogant of this accomplishment, helium has his eyes connected different metric: yearly recurring gross (ARR).

“We crossed €100 cardinal of ARR successful October,” Janca-Jensen told TechCrunch. He added that this magnitude (approximately $116 million) is expanding by astir €1 cardinal a time ($1.16 million). “The program for 2026 is to turn different 300%, truthful hopefully permission the twelvemonth with betwixt €400 and €500 cardinal of ARR.”

To money this ambitious maturation — since the startup is inactive unprofitable — Flatpay raised €145 cardinal successful its latest circular (approximately $169 million). The circular was backed by AVP Growth and Smash Capital, arsenic good arsenic Dawn Capital, which had led the startup’s €$47 cardinal Series B. German shot subordinate Mario Götze besides participated successful that erstwhile round.

The recently raised superior volition enactment continued maturation successful Flatpay’s existent markets — Denmark, Finland, France, Germany, Italy, and the U.K. — arsenic good arsenic further enlargement into 1 oregon 2 caller markets adjacent year. Janca-Jensen declined to uncover which ones, but occupation postings suggest that the Netherlands whitethorn beryllium next.

Flatpay presently has 1,500 staffers — oregon “flatpayers” — and plans to treble by the extremity of adjacent year. Increasing headcount is simply a extremity the institution puts connected the aforesaid level arsenic revenue, stating successful a property merchandise that it aims to turn some by 10x by 2029. This whitethorn look unusual, but they spell hand-in-hand for the company, which onboards its customers successful person.

This stems from its proposal that SMB owners actively look for caller solutions, adjacent if their existent systems are overpriced oregon insufficient. “That’s wherever we travel successful the door,” Janca-Jensen said. He means this virtually — Flatpay shows up with pen and insubstantial to explicate its pricing, and with paper terminals for instant demos. “Every income idiosyncratic has that suitcase.”

Flatpay’s demo kit.Image Credits:Flatpay

This hands-on attack is what mightiness assistance Flatpay summation its stock of a marketplace that is besides coveted by bequest providers, ample fintech players similar PayPal, Stripe and SumUp, arsenic good arsenic caller entrants focusing connected circumstantial sectors, specified arsenic hospitality. But the existent differentiator mightiness beryllium the penetration down it: SMBs privation simplicity, and Flatpay leaves them “ready to go.”

While this makes for higher lawsuit acquisition costs than average, particularly erstwhile combined with 24/7 lawsuit support, Janca-Jensen said that creating request allows the startup to turn overmuch faster than it would otherwise. In turn, this triple-digit maturation makes Flatpay’s accent connected quality enactment overmuch much palatable to investors, adjacent during today’s AI-obsessed investing cycle.

The institution isn’t ignoring AI wholly — it uses the exertion for real-time features and is experimenting with dependable AI agents. Flatpay is besides readying to grow further into fintech with a banking suite that would see cards and accounts. For Janca-Jensen, the cardinal is gradual adoption — truthful that alternatively of getting overwhelmed, SMB owners tin “eat the elephant 1 wound astatine a time.”