iZettle raises €60m to offer new service, iZettle Advance, and to support continued growth
iZettle today announced it has closed a €60 million Series D funding round led by Zouk Capital and Intel Capital, with participation from all of iZettle’s existing venture investors. In addition, the company announces that it is launching a new service for small businesses across Europe. iZettle Advance offers access to extra capital by providing an advance on future card sales. This new funding round will help finance this new service as well as supporting the continued growth of iZettle’s existing business.
For iZettle, the introduction of iZettle Advance marks a first foray into a business beyond card payments, and is a milestone in the company’s ambition to broaden its product and service offering. It is also in line with developments in alternative sources for financing now available for young businesses such as peer-to-peer lending to crowdsourcing. From today, iZettle Advance will gradually be made available throughout iZettle’s European markets. iZettle users eligible for iZettle Advance will be preapproved for financing, which avoids the need for any daunting paperwork. Users will see funds deposited the next day, and payback occurs automatically as a fraction of card sales. When sales vary, payback varies with it.
“Small companies have persistently been underserved by the traditional finance industry. We want small companies to thrive, and with iZettle Advance we’re applying the exact same logic as when we started iZettle five years ago when we completely overhauled the nature of card payments acceptance by small businesses,” says Jacob de Geer, iZettle’s CEO and co-founder.
“We continued to be excited about the huge potential of iZettle and the significant savings it makes for its customers. This new service represents the next step in iZettle’s goal to support the financing needs of small and micro businesses and we look forward to working with the team in the next stages of its development,” said Nathan Medlock, Partner at Zouk Capital.
About iZettle:
iZettle is the number one provider of mobile payment services and apps in Europe and Latin America. From card readers for smartphones and tablets to cash registers, sales tools and cash advances, all of iZettle’s solutions are simple to setup, super secure and designed to help small businesses grow. Founded in 2010 with headquarters in Stockholm, iZettle is now available in 11 countries globally. iZettle’s investors include 83North (formerly Greylock), American Express, Creandum, Dawn Capital, Index Ventures, Intel Capital, MasterCard, Northzone, Santander Fintech, SEB Private Equity and Zouk Capital.
About iZettle Advance:
· Get an advance on future card sales. Get money today and pay back through a fraction of your daily card sales. No security required.
· Adjust the offering to your own needs. Tailor the amount and payback pace to what suits your business, within limits customised to your track record.
· Quick approval and money deposited the next day. No forms or applications. You have been preapproved for what you’re being offered.
· Adapted to your business’ pace. No payback deadline. When your sales vary, your payback varies with it.
· Fixed and transparent pricing. The advance comes with a fixed fee, and there are no additional fees if the payback takes longer than expected.
· Focus on sales, don’t worry about payback. Repayments are completely automated so that you can fully focus on managing and growing your business.
iZettle Advance has already been a game changer for Jaime Morales , who runs and owns Chilimundo, a grocery store in Stockholm. “As a small business, your cashflow is often uneven and, until now, there have been no good financing alternatives to smoothen things out. iZettle Advance has allowed me to quickly ramp up the size of my product range, as well as to advertise on social media and radio,” says Jaime Morales . “This has had a positive impact on my sales, no doubt about it.”
