A London fintech startup backed by one of SIlicon Valley's most prestigious accelerator programmes has raised millions of pounds in fresh funding from venture capital investors.
GoCardless has landed $22.5m from existing investors Accel, Balderton Capital, Notion Capital and Passion Capital, bringing total funding to $35.5m.
The five-year-old payments firm was part of US startup hot house Y Combinator and also gained seed funding from the scheme which boasts Dropbox, Airbnb and Stripe among its alumni.
The startup provides technology that makes it easier for firms to integrate payments online, pitching itself as bringing direct debits into the digital age, and boasts Sage, Zuora, Xero and QuickBooks among its clients. It has processed more than $4bn of payments for more than 30,000 firms across the UK and Europe to date and will use the fresh cash to expand into new markets, initially Australia and Denmark.
"As more and more businesses become international, they face endless frustrations in managing payments across multiple territories. What we have engineered is a way to simply plug recurring payments into their existing systems, across the world, so they can focus on the challenges that really matter," said chief executive Hiroki Takeuchi who founded the firm with Monzo entrepreneur Tom Blomfield and Matt Robinson, who has now gone on to found proptech startup Nested.
Accel's Martin Gibson said: “We look for businesses solving real problems and using tech to make cumbersome processes scalable. GoCardless has already demonstrated tremendous growth in this area, and recent hires at the senior level show it is building the business to own this sector."
He added: "To see GoCardless with such a head start on this mission, yet still pushing to accelerate faster, is exactly what we look for in our founders.”