BlackRock Makes $700 Million Investment in Australian Battery Storage

Banking payment application start-up, Trustly has been in the news recently for raising a massive investment amount in a funding round. The Sweden-based Start-up has not disclosed the exact amount received in the funding but the valuation of the start-up has crossed the mark of $1 Billion at this round. The major investor in this deal is BlackRock with other backers such as Aberdeen Standard Investments, Investment Corporation of Dubai,  funds managed by Neuberger Burman, and RSIC. 

Trustly is an open banking solutions provider company, founded in  2008 in Stockholm, Sweden. The co-founders of Trustly are Joel Jakobsson,  Lucas Gratte, and Carl Wilson. Coming under the category of major fintech companies in Sweden, it was acquired by Nordic Capital in 2018 for an amount of $700 Million.

Online banking solutions start-up, Trustly offers a service of online payment to customers in multiple currencies through their bank account registered on the application. Applicable in multiple categories such as E-commerce, telecom, media, travel, and many more, it serves areas of Europe and Northern America. Millions of customers and merchants in their operational areas are using Trustly for payments and other online transactions.

Hassle-free online payment services can be attained without using any credit or debit card. Popular merchants that use Trusty are Paypal, Boozt, Refunder, Facebook, Alibaba, ACE money transfer, Transfer Galaxy and others combined making a total of more than 6000 merchants on the platform and providing online transfers from around 3000 banks.

Providing bank-based transfers to its consumers addresses multiple cybersecurity issues and cyber frauds, as the payment can be done without any bank card with the added facility of two-factor authentication. Trustly also has collaborations with some third-party payment services including  Rapyd, Worldpay, etc for efficient banking services. Trustly also merged with PaywithMyBank in 2019. Stripe Connect, Payoneer, and GoCardless are some of the competitors of Trustly.   

According to Chief Executive Officer of Trustly  Oscar Begurlund, they are building a global payments system using Trustly so that people, globally can do transactions without any security issues and in a convenient manner. On the new investment from BlackRock, Trustly welcomes the major investor along with other “minority shareholders” of the company to build online banking solutions.

He also said about not disclosing the latest investment amount but gave a sneak peek into last year’s revenue and the overall valuation, which is more than a Billion USD. On the credit cards, the Chief Executive Officer said that Bank transfers play a major role in saving the young generation from falling into a ” Debt trap” “while also being used to everything being done in real-time”. 

This fresh investment of the unrevealed amount will be used to expand its operations in the global market and will improve its infrastructural services. Currently, it is only operational in 29 countries in Europe and parts of North America, while they are targeting a wider and global area to grow the business with this funding round. 

Coming to the investors in the major one is BlackRock. It is a debt and equity-based investment firm founded in 1988 in New York City, United States of America. Blackrock also deals in secondary market-based investments. Blackrock was co-founded by Robert Kapito and Barbara Novick. 

Backers of this investment include Aberdeen Standard Investments( an investment firm, founded in 2017 with its headquarters in Edinburgh, United Kingdom), Investment Corporation of Dubai ( United Arab Emirates-based sovereign wealth fund, headquartered in Dubai, UAE), funds managed by Neuburger Burman, and RSIC(Retirement System Investment Commission is a United States based investment management company).

The biggest investor of Trustly is Nordian Capital which acquired Trustly after buying the majority of stakes in 2018. Fredrik Nurslund of Nordic Capital said that Nordic Capital is looking forward to “continuing a successful journey with Trustly” and welcomes their “ new partners as co-investors”. He also praised Trustly’s fantastic services and said about attracting “world-class” investors through the services. 

Talking about the other investment raised by the firm to date, In November 2014, an investment of $23 Million was raised by Bridgepoint in a Late Venture Capital round. 

In March 2018, Nordic Capital acquired and invested in Trustly for $700 Million in return for most of the stakes of the firm. There are other funding rounds too but the amount was not disclosed by the company, so we cannot comment on the total investment amount raised by Trustly. 

Trustly is performing mindblowing in the field of online banking transactions and as a banking solutions provider. From addressing safety issues from using cards to doing cardless transactions and managing finances seamlessly and conveniently, Trustly is working at a good pace. The recently raised funding round will widen its market base after the company plans to expand its operations in outer areas of its already built marketplace. 

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