Checkout.com Valuation: $12 Billion and What It Means

Checkout.com Achieves $12 Billion Valuation Through Employee Stock Buyback

Checkout.com, a prominent fintech company, announced on Friday the completion of an employee stock buyback program resulting in a company valuation of $12 billion.

Decacorn Status and Past Valuations

Reaching a $12 billion valuation signifies a significant achievement, as few startups attain decacorn status. This valuation places the company’s founder and CEO, Guillaume Pousaz, on Forbes’ list of billionaires.

However, it’s important to note the company’s valuation history. Checkout.com previously reached a peak valuation of $40 billion during its $1 billion Series D funding round in 2022.

Recent Valuation Adjustments

As the venture capital market entered a downturn later in 2022, the company internally adjusted its valuation to $11 billion. Further adjustments followed, with the valuation decreasing to $9.35 billion in 2023, as confirmed by a company spokesperson to TechCrunch.

Therefore, the current $12 billion valuation represents a nearly 30% increase from its most recent prior assessment.

Details of the Valuation Process

This valuation was not achieved through new investment from external sources. Instead, the company itself facilitated the repurchase of employee shares, without participation from other investors in a tender offer.

The valuation stems from a 409A valuation, an independent third-party assessment. While not equivalent to an endorsement from a professional investor, it’s also not a self-determined increase.

Comparison to Stripe

Stripe, a major competitor to Checkout.com, also experienced valuation fluctuations during the same period of market volatility. Stripe’s valuation fell from $95 billion in 2021 to $50 billion in 2023.

However, Stripe has since recovered, reaching $91.5 billion in February through employee tender offers involving outside investors. Reports indicate Stripe is considering another tender offer, potentially valuing the company at $106.7 billion, as reported by Axios.

Checkout.com’s Business Performance

Despite competing with a highly valued company like Stripe, Checkout.com has demonstrated substantial business progress.

The London-based payments company, favored by major e-commerce platforms such as eBay and Pinterest, anticipates achieving profitability by the end of 2024 and expects a fully profitable year in 2025.

Growth and Employee Benefits

Checkout.com processes approximately $1 billion in e-commerce payments daily and has expanded its workforce by 300 employees this year, bringing the total headcount to 2,000 across 19 global offices.

Employees with at least one year of service are eligible to participate in the stock buyback program. The company has not disclosed the total value of the buyback, either in terms of expenditure or the number of shares involved.

Note: This article has been updated to include additional details regarding previous valuations.