Let’s remind ourselves of Adyen’s business model first, before comparing it to Checkout.īy now, the ‘Adyen legend’ is well-known in the market. Checkout’s business model has some important differences vs Adyen. Compare this to Adyen’s explicit strategy of only organic growth and zero use of M&A.Ģ. And on the M&A front, in just the past year Checkout made two outright acquisitions: buying technology ( ProcessOut ), and buying an existing payments business in a specific geography ( Pin Payments in Australia). That’s the same as the size of Adyen’s employee base at the time of Adyen’s IPO in 2018 (and Adyen was founded 6 yrs before Checkout was founded). As of mid-2020, Checkout employed c.750 people. And those wins are acquired organically by hiring salespeople or through M&A. Why is Checkout raising so much more capital than ever raised by Adyen? I think the simplest and truest answer is that Checkout has an explicit goal to grow as fast as humanly possible. Based on the disclosed $260M cumulative sizes in 3 out of 4 of Adyen rounds in 2006-2015, it’s probably safe to say Adyen raised less than half of what Checkout raised, and Checkout has not even gone public yet (while Adyen’s IPO was purely secondary). CHECKOUT COM SERIESIn less than 2 years, across its Series A, Series B and Series C, Checkout raised a total of $830M. Checkout is prioritizing growth, and is raising A LOT of money to do it. For Adyen’s public investors, there’s not a huge amount of existing analysis out there assessing Checkout’s business model (the sell-side certainly hasn’t done it, or at least not that I’ve seen) and comparing it against Adyen, so I took a stab at putting something together to stir up some discussion.ġ. As of January 2021, Checkout’s post-money valuation was $15 billion. Checkout continues to raise significant funding (with backers including some illustrious names - Tiger Global, Coatue, DST, Insight Venture Partners), at ever-increasing valuations. To that end, today we’ll be looking at one of the fastest-growing B2B payment processors that is billed as “the next Adyen” and increasingly, loosely cited as a risk to Adyen’s growth rate in the long-term.Ĭ (in this post, I refer to it as just ‘Checkout’) is a privately-held, rapidly growing payments company that is a direct competitor to Adyen. But even when you believe the business you are invested in is a “winner”, I think it pays to always be vigilant and monitor for potential changes in competitive intensity.
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