Danish Fintech Flatpay Becomes a $1.75 Billion Unicorn, Targeting SMB Payment Market
Danish fintech startup Flatpay has officially joined the elite club of European fintech unicorns, securing a valuation of $1.75 billion (€1.5 billion) in just three years. The company, which helps small and medium-sized businesses (SMBs) process card payments, now competes with European giants like Adyen, aiming to narrow the gap with its innovative flat-rate pricing strategy for merchants.
Flatpay’s approach focuses on simplicity for small businesses, which make up 99% of Europe’s companies. By offering flat transaction rates for card terminals and point-of-sale systems, the startup has rapidly scaled its user base from 7,000 in April 2024 to around 60,000 today. CEO and co-founder Sander Janca-Jensen emphasizes that while the unicorn milestone is significant, his priority is growing the company’s annual recurring revenue (ARR). Flatpay recently surpassed €100 million ($116 million) in ARR, growing by nearly €1 million daily.
To fuel its ambitious growth, Flatpay raised €145 million ($169 million) in its latest funding round, backed by AVP Growth, Smash Capital, and Dawn Capital, which had previously led a €47 million Series B. The fresh capital will support expansion in current markets including Denmark, Finland, France, Germany, Italy, and the U.K., and potentially one or two new European markets next year, with hints pointing toward the Netherlands.
Flatpay currently employs 1,500 “flatpayers” and plans to double its workforce by the end of 2026. The company emphasizes in-person onboarding, with staff visiting SMBs directly to demonstrate terminals and explain pricing. This hands-on approach, combined with 24/7 customer support, is designed to build trust and accelerate customer acquisition despite higher initial costs.
While the company focuses on human interaction, it also leverages AI for real-time features and is experimenting with voice AI agents. Looking ahead, Flatpay plans to expand its fintech offerings, including banking products like accounts and cards. Janca-Jensen’s philosophy is gradual adoption, allowing SMB owners to integrate new solutions comfortably, one step at a time — a strategy that has fueled Flatpay’s rapid growth and investor appeal in today’s competitive European fintech landscape.
source: Techcrunch