Payrexx AG is starting its Series A financing round: INS Holding AG is supporting the Swiss online payment platform for SMEs with an amount of around CHF 2.5 million. The resources will be used to improve the existing offering and to launch new projects.
It is an important step for Payrexx AG: until now, the Swiss online payment provider has successfully financed itself through organic growth and with the help of smaller investments from existing private investors. In this way, the startup from Thun was able to build up a comprehensive service.
If a company uses Payrexx, it can offer its customers over 200 payment methods for payment with just a few clicks. Payrexx was also named the most popular payment service provider (PSP) among Swiss SMEs in the 2023 online retailer survey conducted by the Institute of Marketing Management.
The company is now entering the next financing round, known as Series A, in which external investors are involved: INS Holding AG from Zug is investing around 2.5 million Swiss francs in the platform as an investor. As part of this transaction, carried out by a consortium of Icelandic investors, the company valuation of Payrexx is in the double-digit million range.
This investment was made in close cooperation with Corestar Partners GmbH, which acted as exclusive strategic and financial advisor to Payrexx in this financing round. The investment banking boutique has focused exclusively on the fintech sector in Europe since 2013 and is regarded as the market-leading investment advisor within the payment service provider sector.
Improving the existing and tackling the new
CHF 2.5 million is a rather small investment compared to the international payment industry, says Ivan Schmid, founder and CEO of Payrexx. And yet the financial injection represents an important step, especially for the more than 50,000 customers:
“The resources will be used to a large extent to expand our existing service, strengthen customer service and create jobs in the region. This investment will also enable us to launch pioneering growth initiatives and position them on the market for the first time since our foundation.”
The existing offering is not only to be improved, Payrexx also intends to tackle new projects in the future. The company is currently pursuing five major growth targets, such as the introduction of bank-to-bank instant payment methods, the further development of distance selling into an on-site POS terminal solution and the expansion of the already launched QR code payment – all functions designed to simplify online and on-site payments for end customers.
This constant development is particularly important for an SME like Payrexx, emphasizes CEO Ivan Schmid:
“The digital payment market is characterized by intense competition and an international presence. To survive in this dynamic environment and secure the best conditions for small and medium-sized enterprises (SMEs), it is crucial to be innovative and agile.”
This is the only way to implement the company’s own vision: Payrexx wants to simplify digital payment transactions and thus enable all people and companies to participate in the success of global online commerce.
Featured image credit: edited from Unsplash
