Dutch fintech startup Payaut announces raising over €2.6 million seed funding. Existing investor LocalGlobe led the round, with Finch Capital also participating again. Global VC fund Entrée Capital who specializes in fintech and several notable angels from the fintech and payment industry completed the lineup of investors. Payaut will use the fresh funds to scale its payment service for online marketplaces and to roll out in the rest of Europe.
Founded in 2019, Payaut offers an all-in-one payment solution for online marketplaces that takes care of everything regarding payments towards the platform and the vendors it hosts. The service functions as an intermediary between sellers and the different Payment Service Providers (PSPs). As a result, marketplaces are no longer dependent on one single PSP but instead can use multiple providers such as Mollie, Adyen or Stripe at the same time.
As Payaut takes care of payment traffic towards the vendors, these online marketplaces are instantly compliant with the strict European PSD2 regulation. Furthermore, Payaut helps platforms and marketplaces streamline different cash flows by providing insights through unified reports.
With the new funding, Payaut can grow its team in The Netherlands to expand its product. For new clients, it will become easier to connect to the payment solution and integrate it into their existing marketplace. It will also become simpler to quickly verify new vendors on a platform, to comply with ‘Know Your Customer’ guidelines.
“With this investment, we have plenty of runway for the foreseeable future”, says Ernst van Niekerk, CEO of Payaut. “We want to scale up rapidly and grow to $300 million in processed payments by 2021. This funding also allows us to roll out to other countries. Germany is up first, the rest of Europe will follow suit.”
The round is being led by LocalGlobe, who also took part in Payaut’s pre-seed round last year. “Payaut provides a much-needed solution for a wide range of online marketplaces”, says Suzanne Ashman, General Partner at LocalGlobe. “They are already serving marketplaces across rentals, fashion, ticketing, healthcare, and the sharing economy. We’ve seen the challenges that marketplaces and platforms face around working with PSPs and complying with new regulations. We know from our own portfolio companies that Payaut’s solution will be hugely welcome by many more platforms in The Netherlands and abroad.”
The global VC fund Entrée Capital, with offices in Europe, the US and Israel, joins the group of investors for the first time. Finch Capital, previously involved in the pre-seed funding round of Payaut, also participates again. A group of angel investors with ties to the fintech and payment industry joins them. Among the group are Robert Kraal (ex-Adyen), Jan-Joost Rueb and Onno Bakker (founders eBuddy) and Gaston Aussems, ex-CEO of Mollie, which recently earned the status of ‘unicorn’.
Gaston Aussems is also actively involved in Payaut and will provide comprehensive advice about growth, strategy and execution. “Payaut has shown it offers an innovative solution which can make the lives of online marketplaces a lot easier”, says Aussems. “I’m looking forward to sharing my experience in scaling a fintech with this enthusiastic and talented team.”
“This new round of funding gives us more than just the financial support we need to grow”, says Payaut’s Ernst van Niekerk. “LocalGlobe, Entrée Capital, and Finch Capital investing in us (again) shows a lot of confidence in Payaut’s solution. With LocalGlobe and Entrée Capital, we have great international partners on board and the angels, including Gaston Aussems, bring a wealth of relevant experience in the financial world.”