Danish startup FlatPay enters the ranks of European fintech unicorns to watch.

Flatpay, a provider of card payment solutions for SMBs, has entered the ranks of European fintech unicorns — startups with valuations exceeding $1 billion — a feat that has spurred some of the region’s most significant exits. These include rivals like Adyen, a major Dutch payment processor that still leads in scale. However, Flatpay’s new funding might enable it to close the divide.

Flatpay is betting on its ability to challenge larger competitors by providing small businesses with a consistent transaction fee for utilizing its card terminals and point-of-sale systems. This targeted approach to a segment comprising 99% of European businesses has fueled rapid growth: the company now reports around 60,000 clients, a rise from 7,000 in April 2024.

Flatpay’s valuation has increased at a similarly rapid rate. The Danish startup, now valued at €1.5 billion ($1.75 billion), attained unicorn status in just three years. Yet, while CEO and co-founder Sander Janca-Jensen is proud of this achievement, he is focused on another measure: annual recurring revenue (ARR).

“We surpassed €100 million in ARR in October,” Janca-Jensen informed TechCrunch. He noted that this figure (roughly $116 million) is growing by almost €1 million daily ($1.16 million). “The goal for 2026 is to achieve an additional 300% growth, aiming to end the year with between €400 million and €500 million in ARR.”

To finance this ambitious expansion — given that the startup is still operating at a loss — Flatpay secured €145 million in its most recent funding round (about $169 million). The round saw participation from AVP Growth and Smash Capital, as well as Dawn Capital, which previously spearheaded the startup’s €$47 million Series B. German footballer Mario Götze also invested in the prior round.

The fresh funding will support ongoing growth in Flatpay’s existing markets — Denmark, Finland, France, Germany, Italy, and the U.K. — alongside further expansion into one or two new markets in the coming year. Janca-Jensen chose not to disclose which markets, but job postings hint that the Netherlands may be next.

Flatpay currently employs 1,500 people — or “flatpayers” — and intends to double that number by the end of the next year. The company considers increasing its workforce as important as revenue growth, stating in a press release its aim to increase both tenfold by 2029. While this might seem unusual, these goals are intertwined for the company, which onboards customers face to face.

This approach is based on the idea that SMB owners are constantly seeking new solutions, even if their current systems are overpriced or inadequate. “That’s our entry point,” Janca-Jensen stated. He means this literally — Flatpay representatives arrive with physical materials to explain pricing, and with card terminals for live demonstrations. “Every salesperson carries that suitcase.”

This personalized strategy might be what allows Flatpay to grow its market share in a space also pursued by established providers, major fintech companies like PayPal, Stripe, and SumUp, and new entrants concentrating on particular industries, like hospitality. But the actual distinction might come from the fundamental understanding: SMBs prioritize simplicity, and Flatpay ensures they are “ready to go.”

Although this results in higher customer acquisition costs than average, especially when paired with round-the-clock customer support, Janca-Jensen explained that generating demand enables the startup to expand at a much more accelerated pace than it would otherwise. Consequently, this triple-digit growth makes Flatpay’s emphasis on human interaction more agreeable to investors, even in the current investment climate focused on AI.

The company is not completely disregarding AI — it utilizes the technology for real-time functionalities and is testing voice AI agents. Flatpay also intends to broaden its fintech offerings with a banking suite that would include cards and accounts. For Janca-Jensen, the crucial aspect is gradual implementation — ensuring that SMB owners are not overwhelmed, but can “tackle the challenge in manageable steps.”