Berlin still “major destination” for attracting VC capital, says payments boss

Berlin remains a “major destination” for attracting VC capital, despite lagging behind London, according to the boss of a Berlin-based payments startup which has just bagged sports brand Puma as a client.

The UK is the top European country in terms of fintech investment, according to recent figures from industry body Innovate Finance.

In the UK, $2 billion was invested in fintech across 184 deals, in the first half of 2024, ahead of second-placed Germany, with $462 million invested across 37 deals.

But Berlin remains a key startup hub, says Orkhan Abdullayev, CEO and co-founder of Payrails.

He says:

“Berlin is still very exciting and has a lot of opportunity in terms of talent and in terms of being one of the major destinations for attracting VC capital.”

While Munich and Düsseldorf have growing reputations as startup German hubs, Abdullayev says that Berlin is the German city still attracting the most capital, and engineering talent.

Headquartered in Berlin, Payrails has raised over $20.8 million from  investors including Andreessen Horowitz, EQT Ventures, General Catalyst, and HV Capital.

Payrails, which was founded by executives from Delivery Hero in 2021, provides payment infrastructure for businesses to accept payments and automate financial operations on a unified platform.

Payrails has a 70-strong team, most of whom are based in Berlin, and around 10 people based in Cairo.

Along with its deal with Puma, which means Puma customers will have a “wider variety of payment options” and receive a "more seamless buying experience”, the startup also has deals with Just Eat Takeaway and Vinted.

Abdullayev added:

“It shows us there is a world where a fintech startup at the beginning of their journey can partner with heavyweight and global brands like Puma.”