Summary:
Checkout.com achieves a $12 billion valuation through an employee stock buyback, marking a 30% increase from its previous $9.35 billion mark.
The valuation is based on an independent 409A assessment, not external funding, highlighting internal confidence in the company's worth.
This comes after a peak valuation of $40 billion in 2022, which was later adjusted down due to market conditions, showing resilience in the fintech sector.
Rival Stripe has also seen volatility, dropping to $50 billion but recovering to $91.5 billion, with Checkout.com now competing strongly in profitability.
The company is profitable as of 2024, processes $1 billion daily in payments, and has grown to 2,000 employees, emphasizing solid business fundamentals.
Checkout.com's Valuation Milestone
Fintech giant Checkout.com announced on Friday that it has reached a $12 billion valuation as part of an employee stock buyback program. This move highlights the company's resilience and strategic positioning in the competitive payments industry.
The Valuation Journey
On one hand, achieving decacorn status is a rare feat for any startup, making this valuation a significant accomplishment. It has even propelled founder and CEO Guillaume Pousaz onto Forbes' billionaire list, underscoring the company's impact.
However, this isn't the first valuation peak for Checkout.com. In 2022, during a period of market exuberance, the company was valued at a staggering $40 billion as part of a $1 billion Series D round. By the end of that year, amid a broader venture market downturn, it internally adjusted its valuation down to $11 billion, and further to $9.35 billion in 2023. The current $12 billion mark represents a nearly 30% increase from its previous valuation, signaling a potential recovery.
How the Valuation Was Determined
Unlike typical funding rounds, this valuation stems from a 409A valuation conducted by an independent third party, not from external investor funding. Checkout.com is solely buying back employee shares through a tender offer, with no other investors involved. This method provides an objective assessment, though it differs from the confidence vote of a professional investor.
Comparison with Rival Stripe
Checkout.com's main competitor, Stripe, has also faced valuation fluctuations. Stripe's valuation plummeted from $95 billion in 2021 to $50 billion in 2023 but has since rebounded to $91.5 billion as of February, aided by employee tender offers with outside investors. Recent reports suggest Stripe might be planning another tender offer at a $106.7 billion valuation, highlighting the dynamic nature of the fintech sector.
Business Achievements and Growth
Despite the competitive landscape, Checkout.com has made substantial strides. The London-based company, favored by major e-commerce platforms like eBay and Pinterest, reported becoming profitable by the end of 2024 and is on track for full-year profitability in 2025. It processes approximately $1 billion in e-commerce payments daily, has expanded its workforce by 300 employees this year, and now employs 2,000 people across 19 global offices.
Employee Buyback Program Details
Employees with at least one year of tenure are eligible for the buyback program, though the company has not disclosed the total spend or number of shares involved. This initiative aims to reward long-term contributors and align interests with the company's growth trajectory.
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