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Checkout.com cuts internal valuation to $11 billion

Online payments firm Checkout.com has adjusted its internal valuation to $11 billion to "reflect current macroeconomic conditions".

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Checkout.com cuts internal valuation to $11 billion

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Checkout.com in January almost tripled its value to exteneral investors to $40 billion on the back of a whopping $1 billion Series D funding round.

Primary investors included Altimeter, Dragoneer, Franklin Templeton, GIC, Insight Partners, the Qatar Investment Authority, Tiger Global, the Oxford Endowment Fund, and another large west coast mutual fund management firm.

In an effort to galvanise the workforce, the firm is lowering the price at which they can exercise their stock options, from $252 a share to $65 a share under the new internal tax valuation - which is separate from the investor-determined valuation

The firm generated revenue of $252.7 million and a pre-tax loss of $38.3 million in 2020, according to a company filing.

Speaking about the company's valuation in a Web Summit tech conference last month, CEO Guillaume Pousaz said: “Valuation is something for investors who care about entry point and exit point.”

“The multiples last year are not the same multiples than this year,” he added. “We can look at the public markets, the valuations are mostly half what they were last year.”

“But I would almost tell you that I don’t care at all because I care about where my revenue is going and that’s what matters,” he added.

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