Consumer-branded payments startup Recharge raises $35m
Amsterdam-based payments startup Recharge has raised $35m in a Series B funding round
Amsterdam-based payments startup Recharge has raised $35m in a Series B funding round led by European private equity firm SmartFin and participation from existing investors Prime Ventures and Kreos Capital.
The startup, which was founded in 2010 to disrupt a traditionally “offline” industry, provides consumers with a digital alternative to purchase branded gift cards and pre-paid credit from their favourite brands.
It serves over 3 million customers in 150 countries and works with more than 750 brands such as Apple’s iTunes, Spotify and Netflix. The startup processes more than $500m of sales every year and has a goal of reaching $1bn within the next two years.
Whilst the branded payments sector is estimated to be worth around $3trn, it’s still a largely underserved market and inconvenient for consumers. The startup aims to use the funding bolster its presence in Asia, Latin America and the Middle East in tandem with offering its own financial services products.
Booming subscription economy
Subscription services have witnessed record-high surges in demand over the last few years, which positions businesses such as Recharge and LayLop competitively to take advantage of this movement.
According to a McKinsey report, the subscription e-commerce market has grown by more than 100% a year over the past five years. The largest such retailers generated more than $2.6bn in sales in 2016, up from $57m in 2011.
SmartFin founder and entrepreneur Jürgen Ingels commented: “The Recharge platform as branded payment infrastructure provides a perfect basis to expand to other kinds of offerings. After looking at different European players we believe that Recharge offers a great opportunity within the payment space. Integrating brands and payments while providing maximum flexibility to the customer is the way to go.”