Nomupay Secures $40M Funding from Softbank

Nomupay Secures $40 Million in Series C Funding

The evolving landscape of global commerce is driving a greater need for a wider array of international payment solutions. In response, Nomupay, a fintech startup headquartered in Ireland, has successfully completed a $40 million Series C funding round. This investment comes from SB Payment Service (SBPS), a subsidiary of the Japanese telecommunications leader, SoftBank Corp, valuing Nomupay at $290 million.

Facilitating Cross-Border Transactions

Nomupay streamlines the process for businesses to handle cross-border payments, particularly within the complex payment infrastructure of Asia. Its services also extend to merchants and customers located in Europe, the Middle East and North Africa (MENA) region, and the United States.

Recent Funding and Growth

This latest funding round follows a $37 million Series B round secured in January of this year, which valued the company at $200 million. To date, Nomupay has raised approximately $120 million in total funding.

Strategic Expansion Plans

The newly acquired capital will be allocated to the next stage of Nomupay’s development. This includes broadening its operational reach into key regions, notably Asia and other international markets, as well as strategic acquisitions.

Furthermore, the company intends to significantly scale its sales and operational capabilities to serve both current and prospective clients in new territories.

Integrating Japanese Payment Methods

“We will immediately begin integrating Japanese alternative payment methods (APMs) into our platform,” stated Peter Burridge, CEO of Nomupay, in a recent interview. “This will allow merchants worldwide to access Japanese consumers without needing to establish a physical presence in Japan.”

Expanding Platform Capabilities

Burridge also indicated plans to incorporate SBPS cards into the platform, alongside the implementation of multi-currency settlement and IC++ billing functionalities.

Simplifying Global Payments for Merchants

According to its CEO, Nomupay’s platform empowers merchants to offer a more diverse range of local payment options to their customers, all while minimizing complexity in their internal operations.

The platform also provides merchants with multi-currency virtual accounts and comprehensive treasury services for managing their foreign exchange (FX) exposures.

Decoupled Payouts and Cost Optimization

“We empower merchants to manage their international payouts independently of their acquiring service,” Burridge explained. “This allows for better control over currency risks, FX costs, and the overall payment experience for suppliers and recipients. We leverage local payment networks to reduce expenses and enhance both transparency and speed.”

Navigating the Asian Market

Businesses expanding into Asia frequently encounter obstacles such as the need for multiple licenses, navigating varying regulations, and managing diverse payment methods. These factors can lead to increased operational costs and complexity. However, an increasing number of companies are actively seeking access to the Asian market.

Further Expansion in Southeast Asia

Nomupay is nearing the announcement of expanded coverage in Singapore, Indonesia, and Vietnam. This expansion will substantially increase its presence in Oceania and Southeast Asia, as reported by Burridge to TechCrunch.

Current Market Reach and Acquisitions

The four-year-old startup currently serves over 2,000 merchants globally, spanning Europe, the Middle East, and Asia. In November 2023, Nomupay acquired Total Processing, a Manchester-based company specializing in payment processing solutions, including recurring payments, risk management, data security, and payment integrations.

Recent Growth and Team Expansion

Following its previous funding round earlier this year, the company has successfully onboarded over 500 new merchants. Nomupay anticipates a year-over-year growth increase exceeding 70% and has grown its team to over 250 employees.

Revenue Model

Nomupay generates revenue by charging fees based on the transaction volume processed by merchants, utilizing both payment acceptance services and payouts on platforms serving both buyers and sellers.

Financial Projections

Burridge projects that Nomupay will surpass $45 million in gross annualized run-rate revenue and $20 million in net revenue by the end of 2025. “We’ve demonstrated our ability to achieve profitable growth, but with this new funding, we’re prioritizing growth and anticipate achieving profitability within the next 12 months.”