Danish startup FlatPay joins the club of European fintech unicorns to track

FlatPay, a Danish startup specializing in card payment solutions for small and medium-sized businesses (SMBs), has officially joined the exclusive club of European fintech unicorns, boasting a valuation exceeding $1 billion. This achievement highlights significant progress within the region’s fintech landscape, as it competes with established giants like Adyen, a leading Dutch payment processor. The startup's latest funding round has the potential to help FlatPay close the gap with larger competitors. By implementing a flat transaction fee structure for its card terminals and point-of-sale systems, FlatPay targets the SMB sector, which comprises 99% of all European businesses. This strategic focus has propelled rapid growth; the company now reports approximately 60,000 customers, a significant increase from just 7,000 in April 2024. Currently valued at €1.5 billion (around $1.75 billion), FlatPay reached unicorn status in just three years. While CEO and co-founder Sander Janca-Jensen takes pride in this milestone, he emphasizes another critical metric: annual recurring revenue (ARR). In October, the company surpassed €100 million in ARR (approximately $116 million), with an impressive daily growth rate of nearly €1 million ($1.16 million). Looking ahead to 2026, Janca-Jensen aims for a staggering 300% growth, projecting an ARR between €400 million and €500 million. To support its ambitious expansion plans, FlatPay raised €145 million (about $169 million) in its latest funding round, backed by AVP Growth, Smash Capital, and Dawn Capital, which previously led a €47 million Series B round. Notably, German soccer star Mario Götze also participated in the earlier funding. The newly acquired capital will fuel FlatPay's continued growth across its current markets, including Denmark, Finland, France, Germany, Italy, and the U.K., as well as potential expansion into one or two additional markets next year. While Janca-Jensen did not disclose specific locations, job postings hint at a possible entry into the Netherlands. FlatPay currently employs around 1,500 staff, referred to as 'flatpayers,' and plans to double its workforce by the end of next year. The company aims for both revenue and employee growth to increase tenfold by 2029, a strategy that underscores the importance of human interaction in their customer onboarding process. Janca-Jensen states, 'We come in the door with pen and paper to explain our pricing and provide instant demos with card terminals.' This hands-on approach is crucial in a market dominated by legacy providers and fintech competitors like PayPal, Stripe, and SumUp. The startup recognizes that SMBs often seek simplicity, and FlatPay’s offerings leave them 'ready to go.' Although this method incurs higher customer acquisition costs, Janca-Jensen believes that fostering demand through personal engagement allows for accelerated growth. FlatPay is not entirely overlooking technology trends; it employs AI for real-time features and is testing voice AI agents. Additionally, the startup plans to enhance its fintech offerings with a suite that includes banking services such as cards and accounts. For Janca-Jensen, the goal is to facilitate gradual adoption for SMB owners, allowing them to 'eat the elephant one bite at a time.'