Summary List Placement
A fintech startup that sells its open banking software into some of the world’s biggest companies has raised $51 million.
London-based Yapily courted the funds in a Series B round led by Silicon Valley-based investor Sapphire Ventures, which also backed Jack Dorsey’s Square and the now-public money-transfer business Wise.
Yapily operates in the burgeoning open banking sector and licenses its API (application program interface) into Fortune 500 companies as well as high-growth fintech companies in the UK like GoCardless and Modulr.
Open banking is a set of laws that first popularized in the UK that force banks to share customer data with third parties such as fintechs.
Yapily allows financial service providers and merchants to connect to banks to retrieve financial data and initiate payments through a single API. For example, fintech unicorn GoCardless collects recurring payments for organizations such as Peterborough City Council, which found that traditional direct debits would cost too much. Using Yapily, companies like GoCardless can access the payment account in question, with a user’s approval, to make that payment without having to go through intermediaries.
“It’s fair to say that COVID-19 has accelerated the digitization of industries that we support in a more compressed time frame,” Yapily CEO Stefano Vaccino told Insider.
“More businesses have been forced to digitize payments for example and so innovation has caught up with them. To remain competitive they need an open banking integration so it’s gone from a nice to have, to a must have.”
Yapily claims to have grown its customer base three-fold in the past year as the company expanded its operations into Germany and Italy. The startup will use this fresh funding to expand into France, the Nordics and Baltics with the aim of reaching 95% of bank accounts in those regions by the end of 2022. Yapily has also set its sights on Latin America, a hotbed for fintech, with Brazil a likely first destination for expansion outside of Europe.
The fintech aims to more than double its headcount to around 200 people within the next nine months, according to Vaccino.
The round took two weeks from first pitch to term sheet with Vaccino adding that Sapphire had been explicitly looking for an open banking player to back.
The fintech previously raised a $13 million Series A in March 2020 with this round taking Yapily to $69 million in total funding.
Yapily’s other investors include European VC and Spotify-backer Lakestar, German investor HV Holtzbrinck Ventures, and Saul Klein’s LocalGlobe.
Other angel investors including Taavet Hinrikus, Wise chairman and cofounder, Ott Kaukver, Twilio’s CTO, Roberto Nicastro, UniCredit’s former deputy CEO, and Frank Strauss, the former CEO of Deutsche Postbank, have also backed the startup.
Check out Yapily’s deck:
Source:: Businessinsider – Tech
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