In comparison to startups born into the frothy London fintech space, 2011-founded GoCardless can be considered a slow burner. In the recent years, the 300 person company which is being headed up by co-founder and CEO Hiroki Takeuchi and he has undoubtedly stepped on the gas on the way to become the one stop shop all over the world for businesses which would allow customers to pay via recurring bank payments.
A year back, GoCardless had announced that they had raised $22.5 million in funding, recording annual growth in the U.K. and strong early traction in new markets. The fintech has current disclosed a new capital infection- 75 million dollars in a Series E funding. In addition to their London HQ, the company has sites in France, Australia and Germany, and they have processed transactions for 40,000 businesses globally.
Leading the round have been new investors namely Adams Street Partners, Google Ventures and Salesforce Ventures. Previous backers include Accel Partners, Balderton Capital, Notion Capital and Passion Capital.
In a call with Takeuchi late last week, he picked up on a familiar theme, describing the collection of recurring payments for many business as “broken”. Accessing the various bank to bank payments schemes has traditionally been difficult from a commercial, compliance and technical point of view. Instead, businesses have typically relied on payment methods, such as card payments or cheques, which aren’t up to the job of recurring payments.
This is because the payment options have been designed for one-off transactions. There has been a rise in subscription business models and an expansion in the B2B market wherein contractors and partners will have to make regular variable payments. Takeuchi said that this meant an international recurring payments network similar to GoCardless would have to be built.
He said- “A global network for bank debit will become an absolute necessity which will allow businesses to easily collect recurring payments anywhere, in any currency. With all the support from our investors we can open up our global network and payments platform to many more businesses across the world, and we will deliver our mission of taking the pain of getting paid, so that businesses will be able to focus on what they do best”.
This because these payment options are designed for one-off transactions (cards, for example, expire, breaking the payment flow). Meanwhile, there’s been a rise in subscription business models and an expanding B2B market in which contractors and partners need to make regular variable payments. According to Takeuchi, this means an international recurring payments network like the one GoCardless is building is needed more than ever.
“A global network for bank debit is an absolute necessity in allowing businesses to easily collect recurring payments anywhere, in any currency,” he says. “Thanks to the support of our investors we can now open up our global network and payments platform to more businesses across the world, delivering on our mission to take the pain out of getting paid, so that businesses can focus on what they do best.”
Takeuchi told that GoCardless has invested heavily in its product, and has a product team of around 100 members. He declined to go into deep detail with GoCardless’ immediate or long term roadmap, but the currency conversion has been one area in which the company is developing new products. Takeuchi didn’t give any specifics.