London FinTech firm GoCardless has secured a huge $75 million Series E investment.
Established in 2011, GoCardless is a relative veteran of the capital’s financial tech scene which employs almost 300 people.
Serving businesses which want to let customers pay via recurring bank payments, it says the new funding – which comes 17 months after its previous $22.5m round – will help it to ‘open up access to the world’s first global bank debit network’.
Headquartered in London with sites in France, Australia and Germany, by spring the GoCardless network will cover 70 per cent of the world’s recurring payments volume. More than 40,000 global merchants transact through GoCardless each month and the business processes $10bn of payments each year.
It now intends to drive organic growth globally, building teams in new offices across EMEA, APAC and North America and giving businesses around the world access to one unified global bank debit network for taking subscription, instalment and invoice payments.
“The way businesses collect recurring payments is broken. Using systems that are unfit for purpose is killing businesses,” said co-founder and CEO Hiroki Takeuchi.
“A global network for bank debit is an absolute necessity in allowing businesses to easily collect recurring payments anywhere, in any currency.
“Thanks to the support of our investors we can now open up our global network and payments platform to more businesses across the world and deliver on our mission to take the pain out of getting paid, so that businesses can focus on what they do best.”
New investors – Adams Street Partners, GV (formerly Google Ventures) and Salesforce Ventures participated in the round and were joined by return investors Accel Partners, Balderton Capital, Notion Capital and Passion Capital.
Nearly half of all global business transactions – $58 trillion in 2016 – are still done on paper, while global subscription businesses can lose up to four per cent of customers every month through avoidable payment churn.
GoCardless is also using the investment to launch innovations in its recurring payment platforms, establishing bank debit as the best fit for today’s recurring revenue businesses.
These include giving businesses easy access to cross border payment services like FX, boosting business cash flow with instant settlement, and increasing transaction success rates through payment intelligence.
The company has seen a 500 per cent increase in revenue from non-UK customers since 2017.
“GoCardless has assembled a world class team with deep financial and technical experience, and solves a real customer need to process recurring payments simply at low cost,” said Tom Hulme, general partner at GV.
“This has driven great growth across a wide variety of customers.
“The company’s seamless integrations with direct debit networks globally takes the pain out of getting paid for recurring revenue businesses, making GoCardless well-positioned to have a meaningful impact on the payments market.”
Diego Passarela, Head of Billing and Payments at Quandoo, a global restaurant booking service, commented: “We used to have to collect payments with a different bank in every country, each with a different set up.
“GoCardless’ global network and platform make our lives much easier, giving us one set up for all countries. We currently offer GoCardless as a payment option in the UK, Germany, Austria, Netherlands and Italy – later this year we’re rolling out to Australia.
“Wherever we offer it, it’s the preferred payment option for our customers, with up to 85 per cent adoption.
“For us, it means we get paid reliably and on time, with better visibility into our payments data. This allows us to make better business decisions, faster.”