Payments service iZettle has secured $55.5 million of new growth capital to accelerate the roll out of its hardware and software products.
London and Stockholm-based iZettle first arrived on the payments scene in 2011 and has developed a range of business payment services such as card readers for smartphones, applications for using them and tools to increase sales.
The business company’s last funding round came in June 2013 when it secured a new corporate investment partner in the form of Banco Santander and £4.3 million of funds.
Also joining the current $55.5 million (£32.7 million) transaction are backers from iZettle’s Series A and B rounds including Creandum, Greylock Partners, Index Ventures, Northzone and SEB Private Equity.
The funds will be used to grow in iZettle’s existing markets as well as sourcing new territories suited to expansion.
iZettle co-founder and CEO Jacob de Geer comments, ‘Small businesses are the lifeblood of the global economy. Our mission from the start has been to democratise and simplify payments around the world to help small businesses grow their business.’
The inspiration for the business came when de Geer’s wife, an entrepreneur producing and importing glasses from Asia, tried to sign a point of sale (POS) merchant agreement with a bank but found it too complex and expensive for a small company.
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Having first produced a mini credit card reader to turn smartphones into cash registers, iZettle has now added free sales overview apps for businesses to spot opportunities and loyal customers.
Nathan Medlock, principal at Zouk Capital, says, ‘Building on its early success in Europe, we’re excited about iZettle’s growth plans, and believe this round will give them the firepower required to execute on the next phase of expansion.
‘At the core of Zouk’s investment thesis is the emergence of what we call resource intelligence: recognising that not only should we be doing more with less, but that resources, process and systems are more connected than ever. iZettle is a great example of this concept in action.’
Medlock will now join iZettle’s board as the company seeks to identify new regions around the world to move into.
iZettle’s card readers and business management software are now available in the UK, Spain, Germany, Sweden, Denmark, Norway, Finland, Mexico and Brazil.