BankTech

Y-Combinator backed GoCardless raised $7 Million in Series B Round

Y-Combinator Startup GoCardless, is also called the stripe or square equivalent of Europe. The company announced on 28th January 2014 that it had raised $7 Million Series B round that will be used to add more talent and take on banks by targeting larger establishments. GoCardless has seen extensive growth since its launch with $200 Mn worth of transactions being processed through their platform last year.

GoCardless a UK based payment firm works with businesses to accept direct debit payments and solve their late payment woes affecting cash flows. Found in 2011 by Matt Robinson, Tom Blomfield, Hiroki Takeuchi Gocardless aims to make payment collection simpler for businesses through collecting direct debits online. The latest round brings the company’s total funding to $11.8 Mn. Balderton Capital led the round with participation from Passion Capital & Accel Partners.

Europe is one of the strongest markets for Direct Debit transactions – enabling customers to pay organizations electronically and automatically. GoCardless has created a simple, API-based solution that bypasses that for all businesses that center around recurring payments.

This gives you an overview of their platform:

GoCardless earns its revenue by charging a 1 percent transaction fee. The company is focused on direct transfers and helping merchants skip around the system used by American Express, Visa, Mastercard, and others. The company says that it has grown by 700% since its launch 2 years ago.

“GoCardless is an exceptional team with the potential to radically improve the way payments are done for businesses. For us, the most distinguishing feature was the feedback from their existing customers, who stressed that the technology they have developed, and the technical team they have built, is world class,” said Tim Bunting, General Partner at Balderton Capital. "We believe this technological advantage, the scalability of the GoCardless model and size of the market it operates in will allow GoCardless to play an important role in the future of online payments.”

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

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