Flatpay Becomes a Unicorn: Danish Fintech Success Story

Flatpay Achieves Unicorn Status in European Fintech Landscape

Flatpay, a company specializing in card payment solutions for small and medium-sized businesses (SMBs), has attained a valuation exceeding $1 billion, joining the exclusive group of European fintech unicorns. This achievement mirrors the success seen with other regional leaders, such as Adyen, a prominent Dutch payment processor, though Adyen currently maintains a significantly larger scale of operations. The recent funding secured by Flatpay is poised to facilitate its growth and potentially close this gap.

A Flat-Rate Approach to Payment Processing

Flatpay distinguishes itself by offering a straightforward, flat transaction fee to merchants for utilizing its card terminals and point-of-sale (POS) systems. This strategy specifically targets the SMB segment, which constitutes 99% of businesses across Europe, and has resulted in substantial growth. The company now reports a customer base of approximately 60,000, a considerable increase from the 7,000 it had in April 2024.

Rapid Valuation Growth and Future Revenue Goals

The company’s valuation has mirrored its customer acquisition success. Currently valued at €1.5 billion ($1.75 billion), Flatpay reached unicorn status within just three years. CEO and co-founder Sander Janca-Jensen, while acknowledging this milestone, emphasizes the importance of annual recurring revenue (ARR) as a key performance indicator.

“We surpassed €100 million in ARR in October,” Janca-Jensen revealed to TechCrunch. He further stated that this figure, equivalent to roughly $116 million, is increasing at a rate of nearly €1 million daily ($1.16 million). “Our objective for 2026 is to achieve a 300% growth, aiming for an ARR between €400 and €500 million by year-end.”

Securing Funding for Ambitious Expansion

To support this aggressive expansion plan – despite currently operating at a loss – Flatpay recently raised €145 million (approximately $169 million) in a new funding round. This round included investment from AVP and Smash Capital, alongside Dawn Capital, which previously led the startup’s $47 million Series B funding. Notably, German footballer Mario Götze also participated in the earlier funding round.

Geographic Expansion and Staffing Plans

The newly acquired capital will be used to bolster Flatpay’s presence in its existing markets – Denmark, Finland, France, Germany, Italy, and the U.K. – and to expand into one or two additional markets in the coming year. While Janca-Jensen has not disclosed the specific target markets, job listings suggest the Netherlands is a strong contender.

Flatpay currently employs 1,500 individuals, referred to internally as “flatpayers,” and intends to double this number by the end of the following year. The company prioritizes both revenue growth and headcount increase, aiming for a tenfold expansion in both areas by 2029. This focus on personnel is driven by the company’s in-person customer onboarding process.

A Hands-On Sales Approach

Flatpay operates on the premise that SMB owners are proactively seeking improved solutions, even if their current systems are inadequate or costly. “This is when we present our offering,” Janca-Jensen explained. This involves a direct, personal approach – Flatpay sales representatives arrive equipped with pricing information and card terminals for immediate demonstrations. “Each salesperson carries a dedicated suitcase for this purpose.”

Differentiating Factors in a Competitive Market

This personalized approach is intended to differentiate Flatpay from established providers, major fintech companies like PayPal, Stripe, and SumUp, and emerging competitors specializing in specific sectors, such as hospitality. The core differentiator, however, lies in the simplicity offered to SMBs, providing them with a “ready-to-go” solution.

Balancing Customer Acquisition Costs and Growth

While this hands-on strategy results in higher customer acquisition costs, particularly when combined with 24/7 customer support, Janca-Jensen believes that generating demand enables faster growth. This rapid expansion, in turn, makes the company’s investment in human interaction more appealing to investors, even in the current climate of AI-driven investment.

Embracing AI and Expanding Fintech Services

Flatpay is not disregarding AI entirely, integrating it into real-time features and exploring voice AI agents. The company also plans to broaden its fintech offerings with a comprehensive banking suite, including cards and accounts. Janca-Jensen emphasizes a phased implementation, ensuring SMB owners can adopt new technologies “one step at a time.”