Trustly’s owner, Nordic Capital, is currently working cooperatively with Goldman Sachs, JP Morgan and Carnegie and could be in the process of receiving assistance from more banking institutions with the goal to conduct the IPO in April or May 2020. This, according to Reuters which cited sources familiar with the matter.
Just like other payment processing service providers in Europe, Trustly is taking advantage of the increased investor interest as the COVID-19 pandemic leads to more consumers and businesses conducting all-digital transactions.
Established in 2008 and with business offices based in Sweden, Spain, Malta, Germany and Britain, Trustly handles over 4 million payments every month (on average). The company’s revenues were valued at €130 million in 2019 and are on track to reach €200 million for FY 2020.
Nordic Capital acquired a 70% stake in Trustly back in 2018 at a valuation of approximately €700 million and then merged its operations with US-headquartered PayWithMyBank in 2019.
The company’s most recent investments round, which was led by BlackRock in June 2020, led to a valuation of around €2 billion.
As noted by Reuters, Trustly’s planned IPO will mostly likely be conducted in Stockholm. It’s notably one of several technology listings expected this year in Europe as investors increasingly turn to growth stocks in fairly strong equity markets.
The appeal of Fintech businesses has increased considerably during the pandemic as more consumers engage with digital commerce platforms and make online payments to avoid physical contact and the further spread of the virus.
Global money transfer Fintech Transferwise is also reportedly getting ready for a potential stock market listing in Britain with assistance from Goldman Sachs, Morgan Stanley and Barclays. The move might value TransferWise at a lot higher than the $5 billion suggested, after a 2020 investment round (according to sources).
Many Fintechs are simultaneously considering an IPO and also a deal with a special purpose acquisition (SPAC) company, which secures funds in an IPO and then acquires a private company in order to give it a listing.
In December 2020, such a blank-check acquisition company backed by professional investor Bill Foley had decided to merge operations with Paysafe, which reportedly valued the payments provider at roughly $9 billion.