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Chronicles

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London-based GoCardless, which processes recurring direct debit payments, raises $75M Series E co-led by GV and PE firm Adams Street Partners

Ryan Browne / CNBC :

CNBC Ryan Browne

Context & Ripple Effects

GoCardless' $75M Series E, co-led by GV and private equity firm Adams Street Partners, is an early marker in what became one of London's most closely watched payments trajectories. The company processes recurring direct debits for businesses — infrastructure-style revenue rather than card interchange — and this round set up the successive raises that followed: $95M led by Bain Capital at a $970M valuation in late 2020, then $312M led by Permira at a $2.1B valuation in early 2022 with Klarna and DocuSign among its customers.

The raise also lands mid-way through a broader London fintech funding wave visible in the related coverage — Checkout.com's $150M Series B at a $5.5B valuation, SumUp's ~$895M round, and Global Processing Services' $300M raise — making GoCardless part of a cohort of UK payments firms scaling on venture and growth capital simultaneously.

First-order effects

  • GoCardless gains $75M to expand its recurring direct debit processing business, now backed by both a top-tier VC (GV) and a PE secondary specialist (Adams Street Partners) — a signal the company is positioning between startup growth and late-stage maturity.

Second-order effects

  • Rival London payments firms respond in kind over the following years: Checkout.com, SumUp, and Global Processing Services each raise nine-figure rounds, turning London into a dense cluster where talent, customers like Klarna and DocuSign, and investor attention are contested across overlapping payment rails.

Third-order effects

  • The arc from this Series E to Mollie's agreed €1.5B acquisition — below GoCardless' $2.1B peak valuation — shows how the 2019-2022 payments funding wave repriced: consolidation by strategic buyers, not public listings, became the exit path for European payments infrastructure firms.

The trend: European payments infrastructure is consolidating as the venture-funded cohort of the late 2010s matures into strategic acquisitions rather than independent public companies.