E-commerce wave makes Dutch payments fintech Mollie a unicorn
Investors have poured a fresh $106 million into Amsterdam payments service provider Mollie, boosting its valuation past $1 billion.
Menlo Park, Calif.-based TCV, which has also invested in Revolut, Facebook, Netflix and Spotify, led the Series B round. Mollie hopes to reach medium-sized merchants that require more than payment processing to manage the growth in e-commerce.
"Medium-sized merchants are finding they need their relationship with their PSP to be more than transactional," said Adriaan Mol, founder and CEO of Mollie in a press release. "They need a partner to help them grow, to help them continually optimize their business — it’s an approach that TCV recognizes builds significant long-term value.”The 16-year-old Mollie serves about nearly 100,000 merchants across the European continent, and expects to process about $11.8 billion in transaction volume in 2020, which it claims would double its volume year-over-year. Mollie is particularly strong in Germany, where its processing volume expanded 1,000% in the past year. Mollie’s clients include Wickey, UNICEF and California-based shoe company TOMS.
Mollie does not require lock-in contracts, which is uncommon among payment service providers, and it's also benefited from the migration of brick-and-mortar stores to e-commerce due to COVID-19 consumer fears and store closures.
“Across Europe, COVID-19 has dramatically accelerated the shift to e-commerce,” Mol said in the release. “We believe that accepting online payments should be effortless for everyone, not complicated."
The European online channel has been rapidly growing for the last several years with 2020 expected to top $846 billion. This will be a 12.7% increase over 2019’s ($750 billion) market size, according to Ecommerce News Europe.