Things are going well in London with new unicorn GoCardless and stealth-loving m3ter grabbing tech funding.
Account-to-account payments provider GoCardless has secured a Series G funding round of $312 million (£230 million), making it the latest UK tech unicorn at a valuation of $2.1 billion (£1.5 billion).
m3ter, a metering and pricing engine for SaaS companies, has launched from stealth with the announcement of $17.5 million (£13 million) in funding.
GoCardless Rises to Occasion
GoCardless says the investment is led by Permira, which has also invested in Klarna, Clearwater Analytics and Carta. New investor BlackRock Private Equity Partners also joined the round.
The funding will be used to look for action in the open banking space through both product and geographical expansion.
Hiroki Takeuchi, Co-Founder and CEO of GoCardless, says: “The rise of open banking presents a once-in-a-generation shift, one that will change the way payments happen all over the world.”
He adds that the fintech firm is “building a direct bank payment network that lets payments flow freely, without cards, expiration dates or extra costs”.
GoCardless processes more than $25 billion (£18.5 billion) in transactions per year and has over 70,000 businesses as clients including DocuSign, Klarna, TripAdvisor and Epson.
Since its last funding round in December 2020, the company’s valuation has more than doubled, while headcount has grown by 85%. (It has 733 employees listed on LinkedIn.)
Klarna recently selected GoCardless to offer bank debit payments to its 21 million+ customers in the US. In addition, PayPal and GoCardless have signed an agreement which will see GoCardless become a direct debit partner for PayPal.
GoCardless adds that the first close of $192 million (£142 million) has been completed. The round is expected to fully close later in the year subject to regulatory approvals.
M3ter explains that the investment will be used for recruitment in Europe and the US, and to extend its product. Kindred Capital, Union Square Ventures and Insight Partners all participated in the round.
The tech startup was co-founded by Griffin Parry (CEO) and John Griffin (CRO), who previously built and sold Back End as a Service business GameSparks to AWS.
Parry points out: “Usage-based pricing offers huge rewards for SaaS businesses, but it isn’t easy to implement. We experienced the pain ourselves when building our previous startup, but we also saw what good tooling can look like at AWS.”
m3ter provides data infrastructure that captures granular usage and cost data, enables pricing configuration and calculates bill amounts in near real time. The company says this feeds systems throughout the stack, including the billing and finance system (to automate billing operations), SaaS platform (to deliver billing dashboards to end customers), and sales CRM and customer success platforms.
m3ter will also use the funding for development of analytics tooling for sales and finance teams. New features will allocate costs algorithmically to provide insights into unit economics, deliver pricing recommendations and provide revenue forecasts based on usage signals.