Startup Scalapay became a unicorn after a Series B funding round
Fintech startup Scalapay received investment in round B. The payment service received $497 million, the main investors were Tencent and Willoughby Capital. In addition, Deimos, Tiger Global, and others participated in the round. As a result, Scalapay’s valuation exceeded $1 billion, making the startup a unicorn. The company plans to use the proceeds to expand its development team and improve the product. Scalapay expects to double its workforce by the end of 2023.
The company was founded in 2019. Scalapay provides a payment solution for members of the e-commerce sector. The main market for the startup is Southern Europe, where it has a leading position. With the current round, Scalapay has raised about $700 million.
The growth of the e-commerce market is driving the fintech sector, which has gained popularity in recent years. Investors are recognizing the potential of payment solutions and are actively investing in emerging startups.
By 2022, there were 500 unicorns in the world, of which 70 were in the fintech sector. Stripe is considered the most expensive startup in the sector – its value is almost double Deutsche Bank’s estimate of $36 billion. The company’s product is a platform for withdrawals and payments. The solution is used by companies such as Spotify, Amazon, and Google.
In addition to Stripe, the top five most expensive fintech startups include One97 with a valuation of $16 billion and Chime with $14.5 billion. They are followed by online broker Robinhood, which is valued at $11.7 billion, and Klarna, which is valued at about $10.7 billion.
If we look at the most promising sector of fintech, it is now mobile banking, which includes Revolut and N26. For example, the German startup N26 offers financial services in 26 countries and has more than 3.5 million users.
When it comes to money transfer solutions, Transferwise, a startup with a valuation of $5 billion, has the upper hand. Its app allows users to transfer money with low commissions, making it a worthy competitor to the giant Western Union.
Trading apps are also popular. Platforms such as Weltsparen, Trade Republic, and Robinhood allow individual investors to buy and sell stocks without the need for an intermediary. In addition, many startups offer better interest rates on bonds than traditional financial institutions.
Fintech startups are already a serious threat to the operations of traditional banks. As a result, many financial institutions are developing their own solutions to stay competitive.