Adyen inches towards €7.1bn IPO: All that you need to know about Paypal’s biggest rival

Adyen inches towards €7.1bn IPO: All that you need to know about Paypal’s biggest rival

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A few weeks back, the Netherlands-based payment startup Adyen announced its intention of going public on the Euronext Amsterdam exchange. For the uninitiated, Adyen powers payment for large and smaller e-commerce merchants and others.

In fact, Adyen is the primary payments provider to eBay and also has other customers including Uber, Netflix, Facebook, Spotify, Etsy, Vodafone, Sephora, Tory Burch, L’Oréal, and booking.com. It has around 668 full-time employees working for the company.

Threat to Paypal?

Founded 12 years ago, Adyen is expected to raise between €922 million and €947 million with the existing shareholder selling their share up to 14.2 percent, which will give Adyen a market capitalization somewhere between €6.5 billion and €7.1 billion before it gets listed on the trading exchange on June 13.

With this move, Adyen’s IPO will be the biggest European tech offering ever since the Spotify IPO that values around $26 billion.

Adyen values more than €1bn!

Competing against the likes of PayPal, Stripe, and WorldPay, Adyen is one of the few companies that has a valuation of more than €1bn. The company has priced its initial public offering at €220-€240 per share. According to Pieter van der Does, Co-founder / President & CEO, this offering helps the company grow even more and offers the shareholder the direction towards liquidity.

Adyen to expand beyond payment processing!

Furthermore, Adyen is also planning to go beyond payment processing technology, and expand in settlement services as the company got banking license around last year end. This move will serve the company to grow its margins and net revenues as well. The company also claimed that, for the year ended December 31, 2017, Adyen has generated a net revenue of €218 million, which is a rise of 38 percent over the previous year.

Adyen’s Investors

Adyen is backed by various investors including London-based Index Ventures, Singaporean sovereign wealth fund Temasek, General Atlantic and Iconiq, an investment company representing many of Silicon Valley’s most wealthy executives.

Paypal acquires iZettle, Stripe with Microsoft and more

Just like Adyen, other payment group companies are stepping their game up. Not long ago, Paypal acquired another Europe-based financial startup iZettle that mainly focuses on mobile point-of-sale payments to physical SMB merchants. In addition to that, Paypal kicked off deeper integration with Google that lets the user pay bills without closing Google services. On the other hand, the companies like Stripe, Braintree started integration with the Redmond giant Microsoft to make financial transaction much smoother and easier.

Stay tuned to Silicon Canals for more updates in the tech startup world.