ppro Raises $180M at $1B+ Valuation - Payments Innovation

The recent surge in online shopping, accelerated by the pandemic, has brought increased attention to companies that facilitate e-commerce processes.

PPRO, a London-based company specializing in localized payment solutions for marketplaces, payment processors, and other online businesses, has secured $180 million in new funding. This investment elevates PPRO’s company valuation to exceed $1 billion.

PPRO, whose name is pronounced “P-pro” referencing payments professionals, intends to utilize these funds to broaden its reach into new international markets.

According to Simon Black, PPRO’s Chief Executive Officer, the company will prioritize expansion in Asian nations such as Singapore and Indonesia, as well as Latin America, where it previously acquired allpago in 2019.

These regions present opportunities due to the increasing volume of online transactions and the inherent complexity of fragmented payment systems.

The funding round included participation from investors including Eurazeo Growth, Sprints Capital, and Wellington Management. This follows a $50 million investment received last August from Sprints, Citi, and HPE Growth, and an additional $50 million raised in 2018 with PayPal as the lead strategic investor.

PPRO currently serves over 100 major global clients, including PayPal, Citi, Mastercard Payment Gateway Services, Mollie, and Worldpay, providing them with access to its APIs for functions like localized payment gateways, processing, and merchant acquiring.

The increased online activity from both consumers and businesses – a consequence of the pandemic and temporary closures of physical stores – has resulted in a doubling of PPRO’s transaction volumes between the fourth quarter of 2020 and the same period in 2019.

PPRO is not alone in recognizing this market opportunity.

The financial services sector is fundamentally fragmented. While the core types of transactions – deposits, payments, and credit – remain relatively consistent, there are countless ways to execute them, with local preferences shaping the dominant methods in each market.

This has spurred the growth of “banking as a service” and “fintech as a service” companies, which integrate numerous services, often through APIs, enabling their clients to easily incorporate these functionalities for their own customers, frequently alongside other financial management tools.

Other companies operating within this broader fintech landscape include Rapyd, Mambu, Thought Machine, Temenos, Edera, Adyen, Stripe, and newer entrants like Unit, many of which have recently secured substantial funding to capitalize on the expanding market.

PPRO distinguishes itself by being an early adopter in addressing the challenges of payment fragmentation for companies operating internationally, and by maintaining a dedicated focus solely on payments, without diversifying into related services.

“We remain highly focused because the issue of local payments is becoming increasingly complex,” stated Black, who believes that “the gap between consumer payment preferences and the growing number of available options” contributes to this complexity, potentially offering consumers both greater choice and overwhelming options.

Black emphasizes that PPRO’s concentration on payments has enabled it to develop superior technology tailored to address global challenges.

“PPRO develops robust, scalable solutions. Its rapid growth is driven by the lack of other truly global players. We are expanding globally to support clients who are localizing their operations, allowing us to concentrate on payments and serve as a strategic outsourcing partner.”

The company is also exploring potential areas for product expansion, including compliance solutions and enhanced analytics, in addition to its core payment services.

“Our value lies in anticipating shifts in consumer behavior,” Black explained. “We analyze how customers utilize various payment methods – whether they are service providers, furniture retailers, or travel companies – to identify the most effective options.” He cited open banking and buy-now-pay-later services as examples of emerging opportunities.

“We are pleased to support Simon and the PPRO team as they continue to develop leading local payment solutions,” said Nathalie Kornhoff-Brüls, Managing Director at Eurazeo Growth, in a statement. “All indicators suggest that digital commerce, particularly cross-border commerce, will continue to grow rapidly, and innovation in payment methods will remain strong. Consequently, facilitating local payments is becoming increasingly challenging. Payment service providers have no alternative as merchants and their customers are demanding adoption.”

“PPRO has established itself as the premier problem solver in this domain, providing the local payments technology and expertise relied upon by the world’s largest payment companies. Our investment reflects our confidence in PPRO’s growth potential, and we are excited to support the team on their journey,” added Voria Fattahi, a Partner at Sprints Capital, in a separate statement.