Berlin-based PayTech startup, Ivy, has successfully raised $20 million in a Series A funding round led by Valar Ventures. The funding comes just five weeks after Ivy’s $7.7 million seed round, spearheaded by VC Creandum.
Accelerating global expansion
The newly-acquired capital aims to fuel Ivy’s ambitions to create a global “network of networks” for open banking payments. With this financial boost, the startup aims to fast-track its expansion into new markets, showcasing its innovative API platform. Ferdinand Dabitz, Ivy’s CEO, highlighted the fragmented nature of open banking technology. “The technology is very domestic,” he said, “Interoperability is key from the consumer perspective. A global network is what has to be built.”
An array of services and high-profile backers
Ivy’s offerings include tools that allow merchants to integrate open banking payment options at checkout. In addition to this, the platform provides smart routing, risk management, instant payouts, and payment links. The startup has attracted a variety of influential backers, including F1 World Champion Nico Rosberg and FlixBus founders Daniel Krauss, Jochen Engert, and André Schwämmlein, along with Martin Blessing, the Ex-CEO of Commerzbank.
Potential to disrupt the payment world
Open banking is increasingly seen as a potential disruptor in the payment sector. Presently focused on domestic transactions, open banking has over 400 tech providers in Europe alone. Ivy intends to fill the gap for international payments.
Ten years from now, there will be a single point of contact in open banking, just as Visa has for card payments.
Ferdinand Dabitz, CEO of Ivy
Beyond funding: upcoming partnerships
While the funding milestone is significant, Dabitz hints at upcoming partnerships with major payment service providers, which he declined to name. These collaborations could provide substantial revenue streams for Ivy, indicating investor confidence in the company’s future.
Current footprint and the question of customer adoption
Currently, Ivy’s platform integrates with some 5,000 banks across 50 geographies, covering a footprint of 500 million bank accounts. However, questions remain regarding how enthusiastic customers will be to adopt open banking as an alternative to cards.
In summary, Ivy’s Series A funding marks a significant step towards its goal of creating a global network for open banking payments. With a focus on interoperability and an eye on international expansion, the Berlin-based startup is keen to capitalise on the evolving landscape of financial services. The move comes at a time when the world of fundraising has experienced challenges, making Ivy’s swift financial backing all the more noteworthy.
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