The Swedish Payments company is the latest FinTech company to signal intention to list on public markets, seeking a valuation near $9bn.
The Swedish FinTech Company is well known in the Gaming Industry and has in recent years completely changed the market of Payments Solutions with their PaynPlay Product, creating seamless transactions for mainly Scandinavian and DACH players.
Trustly is seeking to list on Nasdaq in Stockholm in the coming weeks and its aim is to raise about $930m in fresh capital while its majority shareholder – The Swedish Equity Company Nordic Capital – will sell down its stake.
“This is a way to make sure the company can stay independent. The company has reached the size where it started to become too big for a private environmaint, chairman Johan Tjärnborg told the Financial Times.
This announcement comes as the investor surge for FinTech Companies are growing with Klarna and Stripe, both unlisted companies, tripling the valuations in recent weeks.
Unlike most payment start-ups which rely on card networks, Trustly has created a seamless way for customers to deposit and make transactions using their internet bank, by the use of a click. It is safeguarded by the fact that you need to have your phone or bank device handy to confirm the payment and then Trustly will allocate the payment for you. This product has taken the iGaming landscape with a bang as more and more no account casinos has opened, mainly in Sweden, Finland and Germany, creating a new standard for punters to make deposits and withdrawals in less than minutes.
What is Pay N Play?
Pay N Play is Trustly’s flagship product. Instead of depositing using cards it uses your bank account to immediately transfer from and to player accounts seamless. This also means that the KYC is done instantly as your bank confirms your person rather than you sending in documents proving that your debit card is indeed yours. It also eliminates chargebacks as the player confirms the payment using his security token, which is the ultimate way to confirm your identity.
Trustly was founded in 2008 and the Swedish Investment Firm Nordic Capital bought a majority stake in 2018 at a €700m valuation. Trustly is considered as one of Europe’s fastest growing companies in terms of revenues and a start-up with solid profitability. Last year, Trustly processed $21bn of transactions and had an increase of 40% in revenues. EBITDA was at a solid margin of 46 per cent.
Trustly is present throughout Europe but its biggest market will soon be the US, where it is enjoying huge growth. IT said it would use the IPO proceeds to repay its credit facilities and redeem its outstanding preference shares.