Copenhagen-based company card start-up Pleo has raised $150 million in a financing round, which was led by Thrive Capital and Bain Capital Ventures. Pleo has said that the round, which is now the largest Series C for Danish startups, has led to the company being valued at $1.7 billion.
Pleo, which sells corporate expense management software and linked smart payments cards, has increased its valuation to $1.7 billion following a $150 million financing round, led by Thrive Capital and Bain Capital Ventures. Following its recent valuation, Pleo is now the latest European fintech firm to reach “unicorn” status.
Around 70% of Pleo’s profit comes from interchange fees from merchant bank accounts, subtracted each time a customer uses their card. Paid subscriptions are Pleo’s second largest form of revenue. The start-up has said that the coronavirus pandemic has served as an accelerator for its business model. Over the course of 2020, Pleo’s customer base doubled to 17,000 as an increase in remote working offset a decline in international business travel.
Pleo’s founders were previously employed by Tradeshift, a $1.1 billion fintech company that relocated from Copenhagen to San Francisco. Moving forward, Pleo’s founders plan to use fresh funds to increase the company’s presence in countries like the United Kingdom and boost marketing and PR.