Recently, another fintech company has decided that they want to take advantage of an initial public offering. We are talking about Trustly. This Swedish company enjoys a value of almost $11 billion or 9 billion euros. Due to world events, as well as advancements in technology, digital payment services are more popular than ever. There is a lot of money to be made in this sector and this means that fintech companies know they are going to attract investment. It is likely that Trustly will be successful with its initial public offering.
Who and What isTrustly?
Let’s take a little look at Trustly and what they bring to the market. This company was founded in 2008 and they are a Swedish fintech business. They are known for being a licensed payment institution, which means that customers can choose them as a payment method when they are online, whether they are shopping, traveling or gaming.
Since 2015, Trustly has been popular for pay n play casinos. This is a system that allows players to play their favorite casino games but without going through the laborious registration process. Using Trustly means that they only have to deposit money from their bank account and the company takes care of the registration details. Online casinos have been boosted by offering Trustly and as a result has already led to higher retention of players in a crowded market. You can find detailed information here.
What are the Benefits of an Initial Public Offering?
To keep it simple, an initial public offering is about offering a portion or share of a company for public investors to buy. This is a business move that is referred to as ‘going public’ and the process means that other people can enjoy shares of stocks in a company like Trustly.
But, what are the benefits of going public for Trustly? The main reason a business chooses to do this is to raise capital. So, Trustly would be able to benefit from funds and this can be used to expand and grow the business. For instance. Trustly has plans to increase the number of countries that can enjoy their software. So, money from an initial public offering would help them to do this.
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The Future for Trustly
In 2018, Trustly was acquired by Nordic Capital. Their majority stake came at a price of around $800 million. While they are keeping their cards close to their chest, it is believed that they are in contact with J.P. Morgan, Carnegie and Goldman Sachs for an initial public offering. This is believed to be taking place in late March to early April, and it is likely to be in Stockholm. However, none of these companies have made a comment confirming this yet.
Trustly is likely to generate some interest. It is believed that their revenue in 2019 stood at around 130 million euros. This has gone up substantially in 2020 and stands at around 200 million euros. They are known to process over 4 million payments every month.