Trustly IPO: What You Need to Know

According to NewsGlobewire, the fintech industry is expected to hit a little under $700 billion by the end of 2020s, so it’s no wonder why many people are putting major portions of their investments in that sector.

One of the fastest-growing names in this industry is Trustly. If you want to know more about the company, its financial situation, and how it makes money or a brief outlook on the Trustly IPO status, this article covers everything you need to know!

About Trustly

Trustly is a private, for-profit financial technology company that was founded in Stockholm, Sweden.

The fintech company offers an open-banking model that allows users to shop and make payments online from one account to another, bypassing the need for a dedicated bank card.

The company was founded by Joel Jakobsson, Carl Wilson, and Lukas Gratte in 2008 under the name “Glue Finance”.

By 2019, the company has signed partnership agreements with major fintech companies, including PayPal and TransferWise.

Trustly also announced its merger with PayWithMyBank in June 2019 and later acquired Ecospend in May 2022.

The company now has 500 employees and expanded its operations outside Sweden. Today, it has offices in 50 different countries and operates in Europe, North America, Australia, and several South African countries.

The company also won the “Fintech of the Year” award in 2022.

How Does Trustly Make Money?

Trustly doesn’t charge any fees for downloading, registering, or using its platform. However, it charges the merchants a percentage-based transaction fee when they receive money from payments.

Since these fees are lower than those of a typical card, the company managed to generate massive revenue in the last few years.

According to Trustly, the company surpassed $10 billion in processed payments in 2021, with an estimated revenue of $230 million (1.974 billion SEK) in 2020 and a revenue growth of 53% and a record growth in 2021.

Trustly Funding Rounds and Top Investors

Over the years, Trustly had four funding rounds, raising a minimum of €23 million. Here’s a brief breakdown of each one of them:

• On September 24th, 2011, a funding round under the name of “Venture Round - Trustly” raised an Undisclosed amount of money from a single investor “Alfvén & Didrikson”, acquiring 25% of Trustly AB Group
• On November 4th, 2014, a funding round under the name of “Venture Round - Trustly” raised €23 million from 2 investors: “BDC Venture Capital” and “Bridgepoint”
• On January 1st, 2018, a funding round under the name of “Venture Round - Trustly” raised an Undisclosed amount of money from Nordic Capital. The company later acquired Trustly from Bridgepoint in March.
• On June 10th, 2020, a funding round under the name of “Venture Round - Trustly” raised an undisclosed amount from 4 investors “Neuberger Berman Group”, “Investment Corporation of Dubai (ICD)”, “BlackRock Private Equity Partners”, “Aberdeen Standard Investments”.

Trustly received funding from 10 investors. However, the 3 lead investors are:

• BlackRock Private Equity Partners
• BDC Venture Capital
• Alfvén & Didrikson

What Is Trustly’s Valuation?

Although Trustly doesn’t have an official valuation, the company was valued at $2 billion when it received the final round of investment in June 2020.

According to a report by Reuters, the current value of the company is a matter of debate among several experts, with estimates ranging from as low as €6 billion and up to €9 billion ($6.5 to 9.7 billion).

Trustly IPO Outlook

The first news of an initial public offering by Trustly was in January 2021. During that time, Reuters reported that Nordic Capital was working on an IPO plan with JP Morgan, Goldman Sachs, and other financial institutions in April or May.

In April 2021, Trustly announced on the company’s website its intention to list itself in the Nasdaq Stockholm stock market.

While the announcement was later removed from the website, the company said that it’s aiming to be valued at around €9 billion (around $11 billion at the time). With the IPO, the company was aiming to raise around $920 to $950 million.

However, all plans for an IPO were later halted by the Swedish Financial Supervisory Authority (SEFA).

According to SEFA’s investigations, Trustly didn’t comply with the Swedish anti-money laundering and terrorist financing regulations.

Trustly later released a statement about the SEFA’s decision, saying that the company will work on resolving the issues and questions that the authorities raised, holding any plans for an IPO indefinitely.

Wrap Up

This marks the end of today’s guide that walks you through everything you need to know about Trustly IPO.

As you can see, the company’s IPO was valued at around $11 billion, but with the Swedish authorities blocking the move, the company didn’t specify any intentions for another try in the near future.

Check out our Upcoming IPO Brochures Page.

The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.