Sweden’s Trustly Is Latest FinTech To Test IPO Waters

The Swedish FinTech Trustly is readying up an initial public offering (IPO) for the Stockholm market that could value the company at as much as $11 billion, or 9 billion euros.

Nordic Capital, which acquired Trustly in 2018, is reportedly working with Goldman Sachs, J.P. Morgan and Carnegie on an IPO for late April or early March. Trustly could be valued from 6 to 9 billion euros, sources close to the matter told Reuters.

Nordic Capital and the banks declined to comment on the matter, Reuters added.

Last June, BlackRock led a slate of high-powered investors in a funding round for Trustly. The deal valued Trustly at more than $1 billion, according to TechCrunch. Other participants included Aberdeen Standard Investments, funds managed by Neuberger Berman, Investment Corporation of Dubai and RSIC.

Trustly had revenue of more than $147 million in 2019, according to Nordic Capital’s website. In 2018, the investment firm bought a majority stake in Trustly for around $800 million. Trustly merged with California-based rival PayWithMyBank in 2019.

IPOs have been all the rage this past year, with investors bidding up equities to dizzying heights. FinTech has been a particularly attractive investment as demand surges for digital payment services amid the ongoing global pandemic.

London-based TransferWise, for example, is expected to file for an IPO on the British market, which could make it one of the most valuable tech companies in the U.K. The company was valued at around $5 billion in July. TransferWise’s investors include Silicon Valley’s IVP, Richard Branson and Peter Thiel.

Last month, the British FinTech Paysafe announced its plans to merge with publicly traded “blank check” company Foley Trasimene Acquisition Corp. II in a deal valued at $9 billion. The deal is expected to close in early 2021, the companies said. And in September, Canadian payments firm Nuvei filed to go public on that country’s market.