Recent technological advancements have spurred the growth of the finance and trade world. Particularly, fintech start-ups have witnessed a growth in investments. With the announcement of lockdown in various countries, the number of people buying, saving, selling stocks, and borrowing money online has increased. The current situation has even forced many traditional banks to adopt fintech instruments. On the positive side, these developments have improved the efficiency and reach of the financial intermediation while simultaneously garnering profits for the company.
Europe is among the least developed regions in terms of mobile money penetration. In the ranking, Europe lags behind Asia-Pacific and North America in fintech lending. Among the largest fintech companies, none have originated in Europe. Therefore, the emergence of the COVID-19 pandemic has introduced a way for new venture capital fintech investments. French president, Emmanuel Macron recently raised an opinion that Europe should produce at least 10 companies worth 100 billion by the end of 2030. To succeed with this the government is even regulating barriers to help fintech grow. One such fin-tech start-up in the European Sector is Mollie, which was once a lesser-known company but is now the third biggest fintech start-up in Europe.
Mollie is an online payments start-up processor which was founded in 2004 in Amsterdam, the Netherlands by Dutch entrepreneur Adriaan Mol. It was a relatively lesser-known company before covid-19 but now, has emerged as the third biggest fintech company in Europe. For many decades, investors didn’t have a bet on European tech companies in the finance sector. Mollie proved to be an asset by providing them the exposure. Unlike other firms, Mollie's service is more "localized". They focus on transactions with smaller businesses which most of their competitors do not focus on.
The start-up earned the status of “Unicorn” in September 2020, in an investment round led by growth-stage tech investor TCV where it raised an amount of $ 100 million. In the recent mega-funding round, Mollie has raised $ 800 billion, valuing the company to $6.5 billion. It was led by Blackstone’s growth equity investing unit. The series C investing round also witnessed participation from EQT, General Atlantic, HMI Capital, and Alkeon Capital.
With their fresh funding, the European Fintech aims to increase its establishments in Europe and the U.K and regions of Asia and Latin America. They have around 120,000 monthly active merchants and are signing around 400 to 500 customers each day. The start-up aims to increase the number of employees from 480 to a minimum of 780 in the coming months. The advent of COVID 19 made retailers switch to the method of digital payments. This transition proved beneficial for companies like Mollie which processed more than 10 billion euros in transactions in the year 2020. They now plan to increase the payment volume to 20 billion euros by the end of the year 2021. The company’s clientele includes U.K’s food delivery app Deliveroo and Gymshark, the fitness apparel brand.
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