Quantcast
HomeBusiness NewsBusinessBankingUK fintech GoCardless raises $95m funding

UK fintech GoCardless raises $95m funding

by LLB Finance Reporter
17th Dec 20 2:05 pm

GoCardless, a fintech leader in recurring payments supporting more than 55,000 businesses worldwide, today announces it has raised $95m in a Series F funding round.

This latest fundraise, led by Bain Capital Ventures, follows 46% year-on-year growth for GoCardless despite the challenging economic environment and supports its ambitious growth plans. It brings the total raised to-date to $240m.

GoCardless will use the funding to accelerate its open banking strategy, combining the latest technology with its global bank debit network. For the first time, merchants will be able to access the best of both worlds for recurring payments: Instant open banking payments will provide visibility and speed, while bank debit maximises cash flow and minimises churn by pulling funds automatically from payers – all at a lower cost than cards.

GoCardless will also expand its offering into the adjacent e-commerce market to launch a simple and secure way of making bank-to-bank payments as a lower-cost alternative to cards.

GoCardless takes the pain out of getting paid for businesses of all sizes – from multinational corporations like Docusign to fast-growing SaaS businesses like 8×8, and the rising subscription economy including Brompton Bike Hire and Bridgestone’s MOBOX.

The company processes US$18bn+ of payments annually across more than 30 countries. In 2020, it showed resilience throughout the pandemic with strong performance and an increase in new bookings of 100%. In addition, GoCardless expanded its technology offering with Success+, a payments intelligence tool powered by machine learning, to help businesses optimise their retry strategy when payments fail.

Hiroki Takeuchi, CEO and co-founder of GoCardless said, “This funding round demonstrates the strength of the business and the confidence both our customers and investors have in GoCardless. We’re incredibly proud to have seen continued business growth in such challenging times, and to have been able to continue supporting our customers – helping them stay in control of their payments and cash flow.”

“We believe that open banking is set to disrupt the payment landscape by introducing new, simpler and more secure ways of making bank-to-bank payments that will compete with the traditional card networks. Our investment in open banking innovation will create a uniquely valuable payment offering – continuing to provide our customers with the best way to collect recurring payments.”

Matt Harris, partner at Bain Capital Ventures added, “We’re excited by GoCardless’ enormous growth potential in a massive and largely untapped market. In particular, we’re seeing strong early results as GoCardless moves beyond SMBs to serve mid-market and enterprise customers and expands its international footprint to address a growing need for bank debit processing. We have enormous confidence in Hiroki and the entire GoCardless team to build a multi-billion dollar company that will redefine the payments industry.”

You may also like

Leave a Comment

CLOSE AD

Sign up to our daily news alerts