Sipay Secures $78 Million to Propel Fintech Expansion in Emerging Markets
Turkish fintech company Sipay has garnered significant attention after announcing a $78 million Series B funding round, resulting in a valuation of $875 million. The firm has dubbed itself as the “Stripe for emerging markets,” aiming to fill the gap for comprehensive digital financial services.
Funding and Future Expansion
The recent funding round, which is entirely equity-based, was spearheaded by U.S. venture capital firm Elephant VC. Notable participation also came from QuantumLight, a venture company initiated by Nik Storonsky, the co-founder of Revolut.
With these new resources, Sipay plans to broaden its reach beyond its home base of Turkey. The company intends to introduce additional services, including money remittances, which are currently not provided by Stripe in these locales.
Company Overview and Services
Founded in 2019, Sipay offers a comprehensive application designed for digital wallet management, investments, and loyalty programs. Its platform incorporates embedded finance solutions, forex transactions, and a variety of other financial products.
Partnering with global entities like Visa and Mastercard, along with major Turkish banks and e-commerce platforms such as Trendyol, Sipay proudly serves 6.3 million wallet users and boasts 25,000 registered merchants.
Financial Performance
Sipay has reported profitability since 2023, marking a remarkable 5x year-on-year revenue growth. The company finished the previous year with a run-rate revenue of $600 million.
“Stripe is sorting out one single problem, but there is no all-in-one fintech solution in our markets,” stated Nezih Sipahioğlu, founder and global CEO of Sipay. “So that’s why we have different products.”
Strategic Growth Model
Sipay operates as a white-label solution, similar to the approach taken by Solaris Bank in the U.K. This business model allows fintech companies to issue their own cards or wallets using Sipay’s infrastructure.
The company initially bootstrapped its growth until raising a $15 million Series A funding round in June 2024, led by Anfa, which set the stage for its subsequent expansion initiatives.
Looking Ahead
As global markets increasingly integrate, Sipay’s commitment to facilitating cross-border payment solutions positions it well for future growth and the enhancement of international trade.
“As markets become more globalized, Sipay’s focus on cross-border payment solutions will help drive international growth and trade,” highlighted Peter Fallon, general partner at Elephant VC.