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Chronicles

The story behind the story

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London-based online payments startup Checkout.com raises $150M Series B, led by Coatue, at a 5.5B valuation

Ryan Browne / CNBC :

CNBC Ryan Browne

Context & Ripple Effects

Checkout.com's arc is one of the steepest valuation climbs in European fintech. The company raised a $230M Series A in 2019 co-led by Insight Partners and DST Global at just under $2B, and this $150M Series B — led by Coatue at $5.5B — nearly triples that mark within roughly a year.

The round lands in a London funding market where peers are also raising big: GoCardless pulled in a $75M Series E months earlier, part of the wave that later saw Dealroom rank London as Europe's leading tech hub. What makes Checkout.com's trajectory notable is how it ends: after peaking at a $40B investor valuation, sources reported its internal valuation was slashed to around $11B.

First-order effects

  • Coatue takes a position in one of Europe's fastest-appreciating payment processors at $5.5B — up from under $2B in the 2019 Series A — giving Checkout.com fresh capital while merchant demand for online processing surges.

Second-order effects

  • The step-up resets the pricing benchmark for London payments rivals like GoCardless, whose own $75M Series E now looks modest against a $5.5B peer, pressuring them to either accelerate growth metrics or accept relative devaluation in subsequent rounds.

Third-order effects

  • Checkout.com's full path — from ~$2B to $15B in a Tiger Global-led round, to $40B in a January 2022 share sale, then to an internally slashed ~$11B by December 2022 — has become the template case for how late-2020/2021 growth-stage markups unwound when rates rose, shaping how investors now diligence payments infrastructure valuations.

The trend: European payments infrastructure is riding a venture repricing cycle in which headline valuations inflate rapidly between rounds before private marks catch down with public-market reality.