VC-backed iZettle acquired by PayPal in $2.2bn deal

Following the deal, iZettle co-founder Jacob de Geer will continue to lead iZettle and report to PayPal's chief operating officer Bill Ready. iZettle's management team will continue running the business as the firm becomes European centre for PayPal's in-store product and services offerings.

iZettle posted net revenues of SEK 776m in 2017 (growing by 52% year-on-year) and SEK 526m in gross profit. EBITDA, however, remained negative with a SEK 232m loss.

It expects to generate gross revenues of around $165m (SEK 1.4bn) in 2018, with around $6bn (SEK 52bn) of total payment volume expected to be processed on its platform. It intends to reach EBITDA profitability by 2020 on a standalone basis.

The Swedish payment startup had announced its intention to list on Nasdaq Stockholm, which had approved the listing subject to customary conditions, on 8 May. 

Previous funding
After iZettle's series-A round in October 2011, in which it raised €8.2m from Index Ventures and Creandum, the company collected €25m in a series-B funding round in June 2012, a €40m series-C in May 2014 (with a follow-on €5m investment in July 2014) and a €60m series-D in August 2015.

In August 2015, Zouk Capital and Intel Capital led the initial €60m series-D for the payment technology company, alongside existing investors. Participants in the round included Dawn Capital, Hasso Plattner Ventures, Greylock Partners, Index, Northzone, Creandum and Nordic financial services group SEB.

The company's series-D extension raised €60m in January 2017 and was led by Victory Capital. The extension included debt funding from US-based Victory Park Capital via its credit fund, VPC Speciality Lending. The debt component accounted for €45m of the total €60m. iZettle was understood to be valued at around $500m at the time.

In late 2017, Dawn led a seventh funding round for iZettle along with The Fourth Swedish National Pension Fund (AP4), amounting to €40m.

Company
Founded in 2010 and headquartered in Stockholm, iZettle provides card payment machines linked to mobile devices, as well as payments infrastructure and technology for SMEs. The company operates across Europe, as well as in some South American countries.

People
iZettle – Magnus Nilsson (CEO, co-founder); Jacob de Geer (co-founder).
PayPal – Dan Schulman (CEO).

Advisers
Acquirer – Evercore (financial due diligence); Skadden Arps Slate Meagher & Flom Roschier (legal).
Company – JP Morgan Securities (financial due diligence); Gernandt & Danielsson (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• Nordics
• Financials
• Technology
• Sweden
• Venture
• Dawn Capital
• Zouk Capital
• Index Ventures
• Northzone