Turkish fintech company Sipay, often referred to as “Stripe for emerging markets”, has successfully concluded a Series B funding round, securing $78 million and reaching a valuation of $875 million. The round is pivotal for Sipay as it gears up to extend its operations beyond Turkey, planning to introduce services such as remittances, which are currently not provided by Stripe in those areas.
The funding round was spearheaded by U.S.-based Elephant VC, with additional participation from QuantumLight, the venture capital firm founded by Nik Storonsky, co-founder of Revolut. Established in 2019, Sipay delivers an all-in-one app that facilitates the management of digital wallets, investments, and loyalty programs. The platform is designed for embedded finance, foreign exchange transactions, and various other financial products. Notably, Sipay collaborates with major partners such as Visa and Mastercard, integrating its services with Turkish banks and prominent e-commerce platforms like Trendyol. Currently, Sipay boasts 6.3 million wallet users and 25,000 registered merchants.
The company claims to have achieved profitability since 2023, with a remarkable fivefold increase in year-on-year revenue. For the previous year, Sipay reported a run-rate revenue of $600 million.
Nezih Sipahioğlu, founder and global CEO of Sipay, articulated the company’s differentiation from competitors like Stripe, stating, “Stripe is sorting out one single problem, but there is no all-in-one fintech solution in our markets,” which justifies their diverse range of offerings. He further explained that Sipay operates on a white-label model, akin to Solaris Bank in the U.K., enabling fintech companies to issue their own cards or wallets through Sipay’s infrastructure.
Sipay initially bootstrapped its operations until it raised $15 million in a Series A funding round led by Anfa in June 2024. As Sipay continues to expand its footprint, Peter Fallon, general partner at Elephant VC, highlighted the company’s focus on cross-border payment solutions, emphasizing their potential to enhance international trade and growth in an increasingly globalised market.
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