Payments platform provider GoCardless bags $13m
Startups 100 company will use investment to expand its global footprint and meet growing demand from the travel, utilities and telecoms sectors
GoCardless, a Direct Debit payments platform, has closed a $13m funding round led by Notion Capital, alongside existing investors Balderton Capital, Accel Partners and Passion Capital.
Founded in 2011, Startups 100-listed GoCardless is a payments system that helps small businesses collect recurring payments, charging a transparent 1% fee for every transaction.
More than 16,000 merchants have adopted the platform across the UK, Spain, the Netherlands, Sweden, France and Germany and claims to be processing £1bn of payments every year.
GoCardless plans to use the funding to meet increasing demand from sectors such as travel, utilities and telecoms and to fuel the expansion of its payment network worldwide. The company previously raised a $7m funding round in 2014 to invest in research and development.
Hiroki Takeuchi, GoCardless co-founder, commented: “While our early years focused on helping UK small businesses get access to Direct Debit, our recent growth has been driven by increasing demand from larger corporates and new markets like France and Germany.”
Stephen Chandler, Notion Capital managing partner, added:
“The reason we’ve invested is pretty straightforward: the world is moving toward subscription models and Direct Debit is the most efficient and cost effective way to process them. GoCardless brings this into the digital age, making it simple to integrate and removing the last barriers to broader adoption.”