European venture capital firm Balderton Capital has led a $7m Series B investment round for GoCardless, a payments platform providing online direct debit services. Existing investors Accel Partners and Passion Capital also participated in the funding round.
Launched in London in February 2012, GoCardless is the UK’s largest direct debit provider. The company, which has focused on serving subscription services and B2B businesses, is now processing over $200m of transactions per year, having grown by 700 per cent in 2013.
GoCardless will use this latest funding to build out its proposition for enterprise customers and expand its engineering team.
Tim Bunting, general partner at Balderton Capital, said, “GoCardless is an exceptional team with the potential to radically improve the way payments are done for businesses. For us, the most distinguishing feature was the feedback from their existing customers, who stressed that the technology they have developed, and the technical team they have built, is world class. We believe this technological advantage, the scalability of the GoCardless model and size of the market it operates in will allow GoCardless to play an important role in the future of online payments.”
Bunting will join existing investor Sven Schmidt from Accel on the GoCardless Board. Robert Dighero from Passion Capital also remains on the Board as an observer.
Based in London, Balderton manages more than $2.1bn. Its current portfolio includes innovative companies such as 3D Hubs, Globoforce, Kobalt, Natural Motion, Openet Scytl, Talend, The Hut Group, Wonga, Wooga and WorldStores.
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