Swedish mobile point of sale company iZettle has raised about $80 million in funding, in part from U.S. investors.
Processing Content
The round includes debt funding from New York-based Victory Park Capital, and will be used to help pay for technology expansion and an acquisition of Scottish startup Intelligentpos. iZettle also appointed Maria Hedengren as CFO. Hedengren served in the same position at gaming company NetEnt.
iZettle did not immediately respond to a request for comment. In an interview on CNBC, iZettle CEO Jacob de Geer said the company is adding other services to its existing mobile point of sale technology to address the need to diversify in a competitive marketplace. He also said the company was planning its "next step" for the next 18 to 24 months.
An iZettle logo sits on the wall of the iZettle AB headquarters in Stockholm, Sweden, on Friday, Aug. 28, 2015. Swedish payments startup iZettle AB, a rival to Twitter Inc.founder Jack Dorsey's Square Inc., raised 60 million euros ($67 million) to expand in Europe and fund a plan to offer merchants cash advances on future card sales. Photographer: Johan Jeppsson/Bloomberg
Johan Jeppsson/Bloomberg
Intelligentpos allows iZettle to deliver management tools to restaurants and other types of merchants, enabling them to optimize table turnover, inventory and back office planning.
iZettle's CEO mentioned his industry was undergoing consolidation, and added the IPO market is heating up. He did not confirm plans to go public, nor did he discuss an expansion to the U.S. market or acquisition plans.
Square, the most recognizable mobile point of sale company in the U.S., has entered a series of collaborations to broaden its product mix and merchant reach. iZettle would need to find the a "strong distribution partner" for a move to the U.S., de Geer told CNBC.
Artificial intelligence developments are stoking investor fears about software companies. Banks' limited exposure to the sector and general stability is proving attractive to investors.
Prosperity Bancshares finalizes the second of three acquisitions it's announced since July; Sumitomo Mitsui Banking Corporation appoints a new chief information security officer for its American operations; Huntington Bancshares, Third Coast Bancshares and Heritage Financial completed acquisitions; and more in this week's banking news roundup.
Fintech and crypto groups said in comment letters to the Federal Reserve that the proposed "skinny" master account is too limited and could keep firms dependent on banks. Banking groups asked for more time to comment.
Federal Reserve Vice Chair Philip Jefferson said in a speech Friday that long-term productivity gains brought on by artificial intelligence could compel the central bank to maintain higher rates to keep prices stable.
