Danish Startup Flatpay Joins The Club Of European Fintech Unicorns To Track

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

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

Flatpay’s ain valuation has grown astatine a likewise accelerated pace. Now weighted astatine €1.5 cardinal ($1.75 billion), nan Danish startup reached unicorn position successful only 3 years. But while CEO and co-founder Sander Janca-Jensen is proud of this accomplishment, he 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 scheme for 2026 is to turn different 300%, truthful hopefully time off nan twelvemonth pinch betwixt €400 and €500 cardinal of ARR.”

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

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

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

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

Flatpay’s demo kit.Image Credits:Flatpay

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

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

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