Danish fintech startup Flatpay has officially joined the exclusive club of European unicorns, achieving a valuation exceeding €1.5 billion ($1.75 billion) in just three years. The company, which specializes in simplifying card payments for small and medium-sized businesses (SMBs), recently secured €145 million ($169 million) in its latest funding round. This significant investment will fuel its ambitious growth strategy and further expansion across the continent.
Flatpay's success stems from its core proposition: offering SMBs a straightforward, flat transaction rate for its card terminals and point-of-sale (POS) systems. This focus on a segment that constitutes 99% of European businesses has driven remarkable traction. The startup now boasts approximately 60,000 customers, a substantial increase from 7,000 in April 2024.
Rapid Growth and Ambitious Revenue Targets
CEO and co-founder Sander Janca-Jensen highlighted the company's impressive financial milestones. Flatpay crossed €100 million ($116 million) in annual recurring revenue (ARR) in October, with this figure growing by nearly €1 million ($1.16 million) daily. Janca-Jensen outlined an aggressive target for 2026, aiming for a 300% increase to reach between €400 million and €500 million in ARR.
The recent €145 million funding round, which included investments from AVP, Smash Capital, and existing backer Dawn Capital (who led Flatpay's $47 million Series B where German soccer player Mario Götze also participated), is crucial for supporting this growth, especially as the startup is still in its unprofitable phase.
European Expansion and Unique Customer Acquisition
The newly acquired capital will bolster Flatpay's operations in its current markets – Denmark, Finland, France, Germany, Italy, and the U.K. – and facilitate expansion into one or two new European countries next year, with job postings hinting at the Netherlands as a potential next step.
Flatpay currently employs 1,500 staff, affectionately known as "flatpayers," and plans to double this headcount by the end of next year. The company emphasizes that growing its team is as vital as revenue growth, aiming for a 10x increase in both by 2029. This focus on human capital is integral to its unique, hands-on customer acquisition strategy.
Unlike many digital-first fintechs, Flatpay onboards its customers in person. Sales representatives visit SMB owners with pen, paper, and card terminals for instant demos, explaining their transparent pricing model face-to-face. "Every sales person has that suitcase," Janca-Jensen explained, underscoring their belief that SMB owners actively seek better solutions and appreciate direct interaction.
While this personalized approach leads to higher customer acquisition costs, Janca-Jensen asserts that it generates demand and enables significantly faster growth. This triple-digit growth, in turn, makes the human-centric strategy appealing to investors, even in an AI-dominated investment landscape.
Future Innovations: AI and Banking Services
Flatpay is not entirely eschewing technology; it leverages AI for real-time features and is exploring voice AI agents. Looking ahead, the company plans to broaden its fintech offerings by introducing a comprehensive banking suite, including cards and accounts. Janca-Jensen envisions a gradual adoption process for SMB owners, allowing them to "eat the elephant one bite at a time" rather than being overwhelmed by new solutions.
This blend of high-touch service and strategic technological integration positions Flatpay to challenge larger payment processing giants like Adyen, PayPal, Stripe, and SumUp, carving out a significant share of the European SMB market.
