The Swedish Payment Institute Billhop closed the round led by EQT Ventures with 10.5 million euros. Element Ventures was in attendance as well. The company provides an easy way for its customers to manage their bills and make payments automatically without human intervention.
The company has been making an appearance in more than 20 markets. Yet, their aim is to make use of this opportunity to conquer new geographical areas. The funding will also help them hire new employees to maximize their team.
The company accepts challenges along the way to discover new lands. The growth started from Sweden, and now took firm steps throughout the rest of Europe. However, all its competitors have been made their presences felt in the United States and Sweden. Europe was regarded as a kind of virgin land for the type of service Billhop provides when its expansion started. Now, the market is a little bit challenging in the previously-mentioned regions.
Swedish start-up’s minimalist approach to payments
Billhop’s payment service simplifies its customers’ paying process. It enables customers to pay bills just in three steps: adding invoices, registering the card and simply paying the bills. The company operates the business with a relatively small group of 19 people. However, 65 thousand customers seem to be happy to use it.
After last years’ progress, Billhop has extended its team full of Stockholm’s most gifted people for its fintech and payment business. This minimalist approach seems to be a new window for others. Following Billhop’s expansions, brand new enterprises might pop up as competitors.
Erik Malm, CTO said “Billhop takes established infrastructures and concepts, such as paying bills and using cards and creates a new service by first looking at them from a different perspective, and then connecting the two. It allows us to present a product in a way that is both understandable and user-friendly. We are data and tech-driven, and we have always wanted to develop an innovative service that we can be proud of and would want to use ourselves”.
What’s the issue?
The transaction volumes in the B2B market orbit around $120 trillion. Yet, debit or credit cards are like a fly in the ointment. But the expansion of Billhop changed the game. It holds a license from the Swedish Financial Supervisory Authority. With the headquarters in Stockholm, Billhop is now feeding the Fortune 500 enterprise customers all over Europe and sole proprietorship and SMEs not just in Sweden but also in the Netherlands, Ireland, Finland Italy, and the U.K. The current annual transaction volume to be handled is around 250 million euros.
Sebastian Andreescu, CEO & co-founder of Billhop, commented “We have seen a very strong product market fit in the last 12 months and the investment from EQT Ventures further accelerates our plan of becoming the preferred payments partner for businesses of all sizes across Europe.”
The 10.5 million-euro funding will be helping Billhop, co-founded by Sebastian Andreescu (CEO), Erik Malm (CTO), and Ingemar Sjögren (CFO), become the first name come to mind when the subject is proprietary straight-through processing (STP) payments or B2B payments in general. For further achievements to simplify the way business owners manage and make transactions, the company adopts a constant working policy. The aim is to offer more features for existing and future customers of its.
Ashley Lundström, Partner at EQT Ventures, said “At EQT Ventures we are keen to back founders tackling large markets seeing large changes, particularly when there are win-wins. The payment industry globally has seen a proliferation of choice in B2C payments, and we are excited to back Billhop as they bring LONG-AWAITED innovations to B2B payments.”