Commercial payment companies bag $788 million in the latest funding round

In 2020, commercial payments fintechs raised over $1.7 trillion in venture capital funding and the trend is now accelerating. In the second week of 2021, investors have poured nearly $800 million into startups.

The commercial payment firms like Checkout.com, Modern Treasury and Rapyd took $450 million, $38 million and $300 million in funding respectively.

The London-based payments processor, Checkout.com has tripled its valuation after it raised $450 million in Series C funding round. The company is now valued at $15 billion.

The funding round was led by Tiger Global Management LLC while Greenoaks Capital joined the round with existing investors Insight Partners, DST Global, Coatue Management, Blossom Capital, Endeavor Catalyst, and Singapore’s Sovereign Wealth Fund GIC.

“This latest fundraise reflects our market-leading position and the size of our aspirations as we accelerate in our mission to empower merchants to build better products, drive more revenue and create innovative business models by reimagining interactions with financial services”.

While London based B2B payments company, Rapyd also raised $300 million in series D round of funding led by Coatue while other investors include Spark Capital, Avid Ventures, FJ Labs, and Latitude along with current investors include General Catalyst, Oak FT, Tiger Global, Target Global, Durable Capital, Tal Capital, and Entrée Capital.

The company says the new funding will be used towards the “the engineering and product teams, as well as expand the ‘Self-Service’ element of Rapyd’s platform”. It will also focus on marks that serve B2C and B2B eCommerce payments, marketplace, and financial services businesses. It is also exploring “additional strategic acquisitions in the Americas, Asia-Pacific and Europe, Middle East and Africa”.

In North America, Modern Treasury, San Francisco based payments service provider announced $38 million funding from Series B round led by Altimeter Capital, with prior backers Benchmark and Y Combinator.

“The core infrastructure of business payments has been stagnant for decades leaving businesses to cobble together an unwieldy patchwork of manual processes and point solutions”, Ram Woo, Partner at Altimeter Capital.

The company mentioned that over $18.5 trillion of B2B payments are done through ACH payments, checks and wires and nearly 50% of them through checks.

“This funding will enable us to help more companies, both large and small, modernize their finance function, and reconcile the next billion dollars in payments,” said Dimitri Dadiomov, Modern Treasury CEO.