Now It’s Time For Spotify’s Payment Processor to IPO

Euronext Amsterdam exchange (photo: zandcee (CC SA 4.0))
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Euronext Amsterdam exchange (photo: zandcee (CC SA 4.0))
  • Save
Euronext Amsterdam exchange (photo: zandcee (CC SA 4.0))

Spotify’s payment processor, Adyen, has revealed plans to publicly list on the Euronext Amsterdam exchange.

Amsterdam keeps the company’s financial future close to where Adyen itself was founded and is based.  Other European giants, like Spotify, Etsy, and others, have headed towards Wall Street for splashier prizes.

While there are a variety of valuable payment companies dotting the landscape, such as PayPal and Stripe, Ayden has carved a strong b2b niche.  The global payment company allows businesses to accept e-commerce, mobile, and point-of-sale payments.  The company has over 5,000 customers and is privately held.

The Dutch firm, which was founded in 2006, has chosen a moment of extravagant growth to go public.  Adyen’s volume of processed payments jumped 63 percent in 2017, to $128 billion. The revenue it generated for itself increased 38 percent, reaching $254 billion.

Adyen is claiming their place in the spotlight by announcing that it plans to IPO in Amsterdam next month, seeking a valuation between $7 billion and $10.5 billion.

Although Stripe has a niche serving small-scale retailers and app developers, Adyen has taken on bigger clients with global businesses such as Airbnb, Facebook, Netflix, Spotify and Uber.  All of these companies are in need of mobile-friendly solutions and cross-border functionality.

Adyen’s largest investor is Index Ventures, a London-based VC, and the company is supported by Iconiq Capital, Felicia Ventures, and General Atlantic.   Via Iconiq, Mark Zuckerberg and Twitter cofounder Jack Dorsey are also indirectly backers.

“The unique differentiator of Adyen, they combine the financial services know-how — all the licenses, all the regulatory approvals across the world — with pretty incredible scalable technology,” said Jan Hammer, a partner at Index Ventures, to Fast Company last year. “Because it’s all in the cloud, the most profound bit – their cost of processing is almost zero.”

The Dutch company plans to sell 15 percent of its shares in the offering.



One Response

  1. Adam

    Cool. I’d love to know when Spotify’s travel agent, coffee provider and carpet cleaners are going IPO.

    Music news!