GoCardless gathers payments pace with $75m funding
London-based paytech GoCardless has secured a $75 million Series E investment for its bank debit network ambitions.
By spring this year, the firm says its network will cover 70% of the world’s recurring payments volume, spanning North America, Europe and APAC, enabling businesses to take recurring payments in any currency, via automatic bank debit.
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.
GoCardless will use this investment to build teams in new offices across EMEA, APAC and North America.
Hiroki Takeuchi, CEO, GoCardless, says: “The way businesses collect recurring payments is broken. Using systems that are unfit for purpose is killing businesses. A global network for bank debit is an absolute necessity in allowing businesses to easily collect recurring payments anywhere, in any currency.”
The firm explains that via the subscription economy and the rise of B2B services, around 18% of global payments are now recurring. The company says it has also seen a 500% increase in revenue from non-UK customers since 2017.
It says nearly half of all global business transactions – $58 trillion in 2016 – are still done on paper, while global subscription businesses can lose up to 4% of customers every month through avoidable payment churn.
GoCardless is also using the investment to improve its platforms, such as cross-border payment services like FX.
According to GoCardless, more than 40,000 businesses worldwide, from multinational corporations to SMBs, transact through its service each month. The business processes $10 billion of payments each year.
It has 290 employees across its four offices in the UK, France, Australia and Germany.