Lemon Way: Another Funding Round to Aim for Futher Expansion
Lemon Way reported 55% growth last year and now announces a 10 million euros funding round from the French VC firm Breega and Austrian VC Speedinvest. They each will be holding more than 10% share in this FinTech’s capital. This operation still needs to be approved by the ACPR and would enable Lemon Way to improve their European presence.
Lemon Way specialises in managing payments on marketplaces, on behalf of third parties. They announced €1.4 billion in yearly cash flow of or 2017 (vs 900 million in 2016). They now have 1,400 client marketplaces and over 5 million opened payment accounts.
Considering this success, Lemon Way now intends to further reach out for larger accounts and aims to achieve 100 million euros turnover. This start-up just signed CNP Assurances, Groupe SoLocal, CCI Store and the French Football Federation. Other partnerships could be announced in the months to come, discussions are underway.
Lemon Way also plans to grow stronger in Europe, especially in the UK and Germany. They will be hiring 30 additional employees and they intend to process €2.6 billion euros in payments this year.
Comments – Lemon Way sees bigger
Marketplaces have been experiencing unprecedented growth, yet industry players still have to deal with complex regulatory issues. After being granted approval by the French regulator, Lemon Way went on focusing on securing transactions. As a European leader, they soon became the independent Financial Institution of choice for many marketplaces. They now aim for Germany, and may take advantage of current upgrades in marketplaces' platforms to achieve this goal. This FinTech also entered the crowdfunding sector, which has been expanding fast, and the volume of which has been doubling every two years.
Lemon Way is looking into speeding up the pace of their development via focusing on larger companies. Conventional banking institutions are also addressed and relationships with banks are still being built. Their list of partners now includes Barclays and Crédit Mutuel-CIC, in addition to Banco Sabadell and BNP Paribas (their long-standing partners). In order to secure this profit, and achieve 100 million euros in revenue within four years, they will rely on the larger-scale companies they managed to attract.