Ivy Targets Global Open Banking with $20 Million Series A Funding

Berlin-based startup Ivy has secured $20 million in a Series A funding round. Ivy is carving out a "network of networks" for global open banking payments, aiming to disrupt traditional payment networks like Visa.

Transaction Highlights:

  • Deal Value: $20 million in Series A.
  • Lead Investor: Valar Ventures.
  • Previous Funding: Follows a $7.7 million seed round just five weeks ago led by Creandum.

Ivy Snapshot:

  • Focus: Open banking payments, particularly overcoming the limitations of domestic and single-currency transactions.
  • Founding Team: Co-founded by Ferdinand Dabitz (CEO), Peter Mosebjane Lieck (CRO), Joshua Becker (CPO), and Simon Wimmer (CTO).
  • Business Model: Offers tools for merchant integration, smart routing, risk management, and instant payouts.
  • Market Competition: Competes with established players in the open banking sphere like Tink and TrueLayer.

Next on the roadmap:

Ivy aims to expand its banking partnerships globally and acquire more merchant customers in these regions. The startup is looking to revolutionize open banking by creating a single, global point of contact akin to what Visa has done for card payments. "The technology is very domestic right now, but the need for a global network is imminent," said Dabitz.

Despite declining to reveal specific upcoming deals, Dabitz hinted at major partnerships with payment service providers. These collaborations represent potential high-revenue channels for Ivy, fueling investor interest.

Rationale for funding:

The Series A funding aligns perfectly with Ivy's mission to lead the global open banking payments sector. While the industry has seen remarkable valuations—Visa's acquisition of Tink for $2 billion, TrueLayer valued at over $1 billion, and Volt’s recent $350+ million valuation—Ivy aims to stand out by focusing on interoperability and a comprehensive suite of financial tools.

Andrew McCormack from Valar Ventures, who led this round, said, "Ivy is building what Visa and Mastercard built for cards—a single, global point of access. The market demand for Ivy's solution is extremely impressive."

With a valuation between $80-$90 million, Ivy is still in the early stages but has considerable potential. The company already integrates with around 5,000 banks across 50 regions, covering 500 million bank accounts. Its lower transaction fees compared to card payments make it an attractive option for both merchants and consumers.

As open banking regulations continue to roll out globally, Ivy's focus on creating more than just a functional API could be the differentiator that keeps both customers and investors engaged.

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