Sipay raises $78M Series B for international expansion

Turkish fintech Sipay has closed a $78M Series B funding round at a valuation of $875M. The Series B round was led by Elephant VC, a U.S.-based venture capital firm, with participation from QuantumLight, the venture firm founded by Revolut co-founder Nik Storonsky.

The round comes as the company plans to expand its services outside of Turkey, targeting markets in emerging regions where it will introduce offerings not currently available from Stripe, such as remittances.

As part of its growth strategy, the fintech startup plans to offer new services, including cross-border remittance solutions that will differentiate it from other fintech players like Stripe, which does not yet offer remittance services in the emerging markets Sipay plans to target.

Nezih Sipahioğlu, the founder and global CEO of Sipay, shared his vision for the company:

“Stripe is sorting out one single problem, but there is no all-in-one fintech solution in our markets. So that’s why we have different products.” This approach positions Sipay to cater to diverse fintech needs across the emerging markets it plans to enter. 

Sipahioğlu added, “Our services run as a white label, so any fintech that wants to issue their own card or wallet can do it through us.”

After bootstrapping its development from its founding in 2019 until June 2024, the company raised a $15M Series A funding round led by Anfa.

With its Series B funding, Sipay is now poised to accelerate its expansion and enhance its product offering, providing more comprehensive fintech solutions across a broader range of markets.

Peter Fallon, general partner at Elephant VC, remarked, “As markets become more globalized, Sipay’s focus on cross-border payment solutions will help drive international growth and trade.”

Sipay’s model represents a significant shift in the fintech landscape, particularly in emerging markets. While global players like Stripe have made considerable inroads in developed markets, they have yet to address the full range of financial services needed in these regions. By offering an all-in-one platform tailored to local needs and integrating with both global financial systems and regional banks, it can capitalise on the growing demand for fintech solutions in emerging markets.

The fintech space in Turkey and the broader Middle East is evolving rapidly, with a growing number of consumers and businesses adopting digital financial services. By partnering with global giants like Visa and Mastercard, as well as local Turkish banks and e-commerce platforms like Trendyol, Sipay has acquired 25,000 registered merchants on its platform.