Danish Startup Pleo boosted its valuation to $1.7 billion in a $150 million equity financing round. The investment, led by Bain Capital Ventures and Thrive Capital, makes Pleo the latest privately-held tech company in Europe to surpass the coveted $1 billion unicorn valuation.
Jeppe Rindom, CEO and co-founder of Pleo said that the whole digitization and automation of finance processes has been going on for a while. Danish Startup Pleo makes about 70% of its revenue from interchange fees taken from a merchant’s bank account every time a customer uses their card. The other main chunk of the company’s sales comes from paid subscriptions.
The coronavirus pandemic has been an accelerator for Danish Startup Pleo. Rindom also added that the working-from-home trend offset a decline in international business travel. The company’s customer base more than doubled from 2020 to 17,000. Following the investment, Bain Capital Ventures’ Keri Gohman will join Pleo’s board. Gohman previously held executive positions at accounting software provider Xero and U.S. bank Capital One.
Pleo is also a rare example of a billion-dollar tech company emerging in Denmark. Pleo’s founders were early employees at Tradeshift, a $1.1 billion fintech company that was based in Copenhagen but relocated to San Francisco. The company has raised $228.8 million to date. The firm plans to use the fresh funds to boost its presence in countries like the U.K. and ramp up marketing and PR. The main markets are currently Denmark, Sweden, Germany, Spain, Britain and Ireland. Rindom said Pleo is growing fast and is currently on track to hit $100 million in annual recurring revenue.