Online direct debit provider GoCardless has raised $13 million in a new funding round led by Notion Capital with participation from previous investors Accel Partners, Balderton Capital, and Passion Capital.
The UK-based fintech startup has now expanded its services to the Netherlands, Spain, and Sweden and intends to use its new funds to reach new regions and grow its customer base. It had already been serving the UK, France, and Germany.
According to a statement, GoCardless is processing £1 billion worth of payments a year. Since its launch in 2011, the company has added a number of high-profile corporate clients like Thomas Cook, the Financial Times, and late last year signed a partnership with Mangopay to facilitate payments on crowdfunding platforms.
“While our early years focused on helping SMEs get access to Direct Debit, larger corporates now also realise the benefits of automating away legacy complexities and reaching new markets,” said CoCardless co-founder Hiroki Takeuchi. “This puts us in a unique position to solve a significant global challenge and Notion’s support will only accelerate our progress.”
Stephen Chandler, managing partner at Notion Capital, said the VC firm decided to invest in GoCardless to address collecting payments in a world that is “moving toward subscription models and Direct Debit is the most efficient and cost effective way to process them.”