PayPal rival Mollie raises €90m in funding on back of coronavirus shopping boom

Payment startup Mollie this week revealed it raised €90 million in a round of funding led by a Silicon Valley-based investment company TCV.

The Series B funding brings the total raised by Mollie to €115 million and raises the startup’s valuation to over $1 billion, founder and chief executive Adriaan Mol confirmed in an interview with TechCrunch.

READ MORE: PayPal launches ‘buy now, pay later’ scheme in major challenge to Klarna

Launched in 2004, this is only the second time Mollie has raised funding, after achieving €25 million in an initial drive around a year ago.

“I built the backend and front end by myself when I still lived with my parents,” Mol said. “It’s the Dutch way. Bootstrap your idea for a pretty long time. I think that’s the foundation of the company,” Mol told TechCrunch.

At the moment, Mollie focuses mainly on small and medium businesses, counting some 100,000 merchants as customers, predominantly in the Netherlands, Belgium and Germany.

Those customers include Deliveroo, Moet champagne, TOMS and UNICEF.

Mollie is currently on track to process more than €10 billion in transactions this year, representing growth of 100 per cent on a year ago.

This will bring Mollie closer in line with its international competitors, including Stripe, Ayden and PayPal.

“Obviously COVID has helped a lot as well. But now you keep on accelerating. We believe that consumers have fundamentally changed their behaviours. We’ve gained a couple of years on the trend of offline to online conversion, which was already happening,” Mollie’s chief commercial officer Ken Serdons told Yahoo Finance UK.

While Mollie is yet to expand into the UK, Serdons told Yahoo Finance UK that the business was considering “all the biggest markets in Europe.”

The news comes as PayPal this month stepped up its offering with the launch of its own “buy now, pay later” (BNPL) scheme, in order to compete with market leaders like Klarna and Afterpay.

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