European fintech startup Flatpay has reached unicorn status after securing fresh funding that pushed its valuation to €1.5 billion. The Danish company, which provides flat-rate payment processing for small and medium-sized businesses, has experienced rapid growth, expanding its customer base from 7,000 in April 2024 to about 60,000 today. Its model, built around simple pricing and in-person onboarding, positions it as a challenger to larger players like Adyen in a market where SMBs make up 99 percent of all businesses.
Flatpay’s revenue has accelerated alongside its valuation, with the company surpassing €100 million in annual recurring revenue (ARR) in October. CEO and co-founder Sander Janca-Jensen disclosed that ARR is increasing by nearly €1 million daily, with plans to hit between €400 million and €500 million by the end of 2026. To support this ambitious trajectory, the company raised €145 million in a new funding round backed by AVP Growth, Smash Capital, and Dawn Capital.
The startup intends to use the new capital to deepen its presence in existing markets — including Denmark, Finland, France, Germany, Italy, and the U.K. — while also expanding into one or two new territories next year. Although Flatpay has not disclosed which markets these will be, recent job openings signal a likely entry into the Netherlands. The company also plans to double its workforce of 1,500 “flatpayers” as it aims for a tenfold increase in revenue and headcount by 2029.
Flatpay’s hands-on, pen-and-paper customer onboarding approach remains its biggest differentiator in a crowded market dominated by legacy payment processors and major fintech firms like PayPal, Stripe, and SumUp. While this model raises customer acquisition costs, the company believes it enables deeper engagement and trust among SMBs seeking simplicity. Flatpay is also developing AI-driven tools and plans to roll out a broader financial services suite, including cards and business accounts, as it positions itself for long-term growth in Europe’s competitive payments landscape