Sipay Secures $78M Funding to Propel Stripe-Style Payment Solutions into Emerging Markets
In an exciting development for the fintech landscape, Sipay, a Turkish fintech company, has successfully secured $78 million in a Series B funding round, positioning itself as a prominent player in emerging markets, often referred to as the “Stripe for emerging markets.” With this latest funding, Sipay’s valuation has soared to $875 million, reflecting its ambitious plans for future expansion.
Significance of the Series B Funding Round
This recent funding round is particularly noteworthy as Sipay aims to extend its reach beyond Turkey. The company plans to introduce additional financial services such as remittances, which are currently not offered by Stripe in these regions.
Investors and Funding Details
- The all-equity round was spearheaded by Elephant VC, a U.S.-based venture capital firm.
- Notable participation from Revolut co-founder Nik Storonsky’s venture capital firm, QuantumLight.
About Sipay
Founded in 2019, Sipay offers an all-in-one app designed for digital wallet management, investment tracking, and loyalty schemes. The platform integrates various financial services, including:
- Embedded finance solutions
- Foreign exchange (FX) transactions
- Partnerships with major entities like Visa and Mastercard
Sipay collaborates with Turkish banks and large e-commerce platforms, such as Trendyol, boasting an impressive 6.3 million wallet users and 25,000 registered merchants.
Financial Performance and Growth
Sipay proudly claims profitability since 2023, with a remarkable 5x year-on-year revenue growth. The company reported a run-rate revenue of $600 million at the end of the previous year.
Nezih Sipahioğlu, founder and global CEO of Sipay, emphasized the unique value proposition of the company, stating, “Stripe addresses a single problem, but there is no comprehensive fintech solution in our markets. That’s why we offer a variety of products.”
Future Outlook
Sipay’s services function as a white-label solution, similar to Solaris Bank in the U.K. This model allows any fintech company to issue its own cards or wallets through Sipay’s infrastructure. Sipahioğlu mentioned that the startup bootstrapped its growth until June 2024, when it raised a $15 million Series A funding round led by Anfa.
Peter Fallon, general partner at Elephant VC, highlighted Sipay’s potential, stating, “As markets become more globalized, Sipay’s focus on cross-border payment solutions will drive international growth and trade.”
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