Payments fintech firm Izettle today announced an initial public offering on the Nasdaq Stockholm.
The firm aims to raise two billion Swedish krona (£170m). It expects the float to complete this year.
Izettle chief executive and co-founder Jacob de Geer told City A.M. the funds would be used to fund “pretty ambitious” expansion targets, while a listing would allow future fundraising for “potential M&A”, mergers and acquisitions.
The firm will target 40 per cent annual revenue growth over the next three years while aiming to be profitable on the basis of adjusted earnings before interest, tax, depreciation and amortisation by 2020.
The funds raised will be used to support growth and improve access to capital markets for future placements, de Geer said, allowing it to compete with the large cash piles offered by rivals Shopify and Square, run by Twitter chief executive Jack Dorsey.
De Geer declined to give a target valuation for the firm, although Swedish press reports have previously said it will target a so-called unicorn valuation above $1m (£740m).
Izettle produces apps and card readers which allow small businesses to turn tablets or mobile phones into point-of-sale payment devices.
The firm, which was started in Stockholm in 2010, made 966m Swedish krona in revenues last year. From 2015 to 2017, gross revenue grew at a compound annual growth rate of 56 per cent, the firm said.
The firm grew active users by 20 per cent between 2016 and 2017 to reach 413,000. The bulk of revenues, 783m krona, come from transaction fees, followed by hardware sales and subscription revenues.
“From a personal perspective I’m quite happy we’re listing in Stockholm,” De Geer added. “I feel a bit patriotic.”