Flatpay has emerged as Denmark’s latest fintech success story, reaching unicorn status after closing a major growth round. The Copenhagen based startup, which focuses on payment solutions for small and medium sized businesses, is now valued at around $1.7 billion. Its rapid ascent, achieved in just three and a half years, positions Flatpay among Europe’s fastest growing fintech companies in the highly competitive payments space.
New Funding Round and Unicorn Milestone
The company recently raised roughly €146 million in fresh capital from a syndicate including Hedosophia, AVP Growth, Smash Capital and existing backer Dawn Capital. This round, which follows a €45 million Series B led by Dawn Capital in 2024, pushed Flatpay’s valuation to about €1.5 billion and confirmed its unicorn status. Co founder Rasmus Busk announced the milestone on LinkedIn, framing it as a validation of the team’s belief that small businesses deserve better, more transparent payment services.
Business Model and Market Strategy
Flatpay’s core proposition is simple, it offers card terminals and point of sale systems at a flat transaction rate with no hidden fees or monthly subscriptions. By stripping out complexity and unpredictable charges, the company aims to give small merchants a clearer view of their payment costs and cash flow. This focus on simplicity and transparency is central to its strategy to win over SMBs, which represent the overwhelming majority of businesses across Europe.
Growth Metrics and Expansion Plans
The model has translated into fast scaling. Flatpay reports around 60,000 customers, a sharp increase from about 7,000 in April 2024, and reached €100 million in annual recurring revenue in October, a figure it says is growing by nearly €1 million per day. CEO and co founder Sander Janca Jensen has outlined an ambitious plan to reach between €400 million and €500 million in ARR by the end of 2026, while simultaneously targeting a tenfold increase in both revenue and headcount by 2029.
Operations, Human Centric Sales and Technology
Flatpay currently employs roughly 1,500 people and plans to double its workforce by the end of next year, reflecting its sales intensive approach. Instead of relying solely on digital onboarding, the company sends sales staff physically to merchants, where they explain pricing with pen and paper and demonstrate terminals on the spot, a tactic that drives higher acquisition costs but, according to management, much faster growth. Alongside this human centric model, Flatpay is investing in real time features, experimenting with voice AI agents, and preparing a broader fintech offering that will include cards and accounts for business clients.
The new funding will be used to deepen Flatpay’s presence in its existing markets, which include Denmark, Finland, France, Germany, Italy and the United Kingdom, while also supporting entry into one or two additional European countries, with the Netherlands widely seen as a likely next step. The company continues to compete in a crowded field against legacy providers and global players such as PayPal, Stripe, SumUp and Adyen, leaning on its flat pricing and high touch service as differentiators. If Flatpay can sustain its current pace of customer and revenue growth while scaling operations efficiently, its move into the European unicorn ranks may prove to be an early chapter rather than the climax of its story.