Danish startup FlatPay joins the club of European fintech unicorns to follow

Flatpay, which facilitates card payments for small and medium-sized businesses, has joined the ranks of Europe’s fintech unicorns – or startups valued at more than $1 billion – a milestone that has led to some of the region’s biggest exits. These include competitors such as Adyen, a Dutch payment processing giant that remains far ahead in scale. However, Flatpay’s fresh funding could help it close the gap.

Flatpay’s bet is that it can challenge bigger players by charging small merchants a flat rate per transaction to use its card terminals and point-of-sale systems. This focus on a segment that represents 99% of European business has led to rapid traction: the startup already has around 60,000 customers, up from 7,000 in April 2024.

Flatpay’s own valuation is growing at the same rapid rate. Now valued at 1.5 billion euros ($1.75 billion), the Danish startup reached unicorn status in just three years. But while CEO and co-founder Sander Janka-Jensen is proud of this achievement, he looks at another metric: annual recurring revenue (ARR).

« We passed €100 million ARR in October, » Janka-Jensen told TechCrunch. He added that this amount (approximately $116 million) is increasing by nearly 1 million euros per day ($1.16 million). « The plan for 2026 is to grow another 300%, so we hope to exit the year with between €400m and €500m ARR. »

To fund this ambitious growth – as the startup is still unprofitable – Flatpay raised €145 million in its latest round (roughly $169 million). The round was backed by AVP Growth and Smash Capital, as well as Dawn Capital, which led the startup’s €47 million Series B. German footballer Mario Gotze also participated in the previous round.

The newly raised capital will support continued growth in Flatpay’s current markets — Denmark, Finland, France, Germany, Italy and the UK — as well as further expansion into one or two new markets over the next year. Janka-Jensen declined to reveal which ones, but job postings suggest the Netherlands could be next.

Flatpay currently has 1,500 employees – or « flatpayers » – and plans to double that by the end of next year. Headcount growth is a goal the company puts on the same level as revenue, saying in a press release that it aims to increase both by 10x by 2029. That may seem unusual, but they go hand in hand for the company that trains its customers in person.

This stems from his hypothesis that small and medium-sized business owners actively seek new solutions, even if their current systems are overpriced or inadequate. « We’re getting in the door here, » Janka-Jensen said. He means that literally – Flatpay shows up with pen and paper to explain its pricing and card terminals for instant demos. « Every salesman has this suitcase. »

This hands-on approach is what could help Flatpay increase its market share, which is also coveted by legacy providers, major fintech players such as PayPal, Stripe and SumUp, as well as new entrants focusing on specific sectors such as hospitality. But the real difference may be the insight behind it: SMBs want simplicity and Flatpay leaves them ‘ready to go’.

While this results in higher-than-average customer acquisition costs, especially when combined with 24/7 customer support, Janca-Jensen said that creating demand allows the startup to grow much faster than it would otherwise. In turn, this triple-digit growth makes Flatpay’s emphasis on human interaction that much more palatable to investors, even during today’s AI-obsessed investment cycle.

The company isn’t ignoring AI entirely—it’s using the technology for real-time features and experimenting with voice AI agents. Flatpay also plans to expand further into fintech with a banking suite that will include cards and accounts. For Janca-Jensen, the key is gradual adoption — so that instead of getting overwhelmed, small and medium-sized business owners can « eat the elephant one bite at a time. »