Billion Dollar Unicorns: Adyen Ready For An IPO

According to data platform PitchBook, there are nearly 30 private FinTech startups that are valued at or above $1 billion. One of them is Billion Dollar Unicorn Adyen that is expected to go public soon.

Adyen’s Offerings

Amsterdam-based Adyen was founded in 2006 by Pieter van der Does and Arnout Schuijff to deliver a solution that would offer more flexibility and transparency to e-commerce transactions. Adyen offers an online payment service that provides a modern end-to-end infrastructure connecting directly to Visa, Mastercard, and consumers’ globally preferred payment methods.

Adyen recently expanded its unified commerce offering to Canada. It has now attained full coverage in North America and Europe. Earlier this year, Adyen launched its point-of-sale solution in Singapore and expanded into New Zealand. It now supports over 250 payment methods and most of the world’s currencies across four continents.

Besides payment solutions, Adyen also provides analytics and risk management capabilities. Today, Adyen has more than 5,000 customers globally including Microsoft, Samsung, LinkedIn, Spotify, Twitter, Facebook, Netflix, Casper, Bonobos, L’Oreal SA, and Burberry Group, to name a few.

In a huge win early this year, eBay announced that it will be using Adyen as its primary payments processor instead of PayPal, which eBay spun out nearly three years ago.

Adyen’s Financials

Adyen makes its revenues from processing fees and payment method fees per transaction. It recently announced that it generated revenue of $1.14 billion, up 55% from $727 million in 2016. it processed $122 billion in volume for merchants in 2017, up 61%.

For 2016, Adyen had reported that its revenues net of transaction costs grew 65% to $178 million, and its EBITDA was $87 million compared with $46 million in 2015. Adyen has been profitable since 2011.

The company is profitable and delivering substantial revenues and good growth and has avoided corrupting its cap table by taking in exorbitant amounts of capital at ridiculous valuations. It has so far raised $266 million from investors including Temasek Holdings, Felicis Ventures, and General Atlantic. Its last funding round was held in October 2015, when it raised an undisclosed at a valuation of $2.3 billion. Earlier rounds had valued the company at $1.5 billion.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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