Fintech Checkout.com’s Valuation Slashed to $12 Billion

LONDON – Fintech unicorn Checkout.com is offering its employees a strategic option to realize the value of their equity through a company-initiated share buyback program.

The London-based payments platform announced Friday its plans to implement a share repurchase scheme, designed to “provide [employees] with a clear path to liquidity.” This move comes as a growing number of late-stage private companies are seeking to provide employees with opportunities to monetize their stock options in a challenging IPO market.

The share buyback program is predicated on an internal valuation of $12 billion, according to Checkout.com. While internal valuations should be regarded with caution, this figure reflects a considerable markdown from the company’s peak valuation achieved during its last funding round.

In 2022, Checkout.com secured a $1 billion capital infusion, valuing the company at a reported $40 billion. Subsequently, reports surfaced indicating a revised internal valuation of approximately $11 billion. Checkout.com clarifies that it undertakes regular valuation assessments to inform its employee share incentive program.

Checkout.com operates in a competitive landscape, vying for market share against established players such as Stripe, Adyen, and PayPal. The fintech firm facilitates billions of dollars in annual transaction volume for prominent clients, including Coinbase, Pizza Hut, and H&M. The company’s core business revolves around providing payment processing solutions for e-commerce merchants globally.

Employee share buyback initiatives have gained traction as a mechanism for startups to reward early employees and other investors, particularly as the timelines for tech companies to pursue initial public offerings (IPOs) have extended amidst a prolonged period of market volatility and reduced IPO activity. This program allows employees to convert their equity into cash, providing significant benefit in a period where external liquidity is scarce.

Checkout.com stated that it is on track to surpass its target of 30% core net revenue growth for the current fiscal year, projecting an annual e-commerce payment volume of $300 billion. The company’s ability to achieve this growth amid a challenging macroeconomic environment underscores the strength of its platform and its strategic focus on key verticals.

“We are relentlessly focused on growth and innovation, particularly with the impact of AI and the expected rise of agentic commerce,” stated Guillaume Pousaz, CEO and founder of Checkout.com, in a press release. This statement also highlights the strategic importance of artificial intelligence and the emerging field of agentic commerce. Agentic commerce, where AI-powered agents autonomously conduct transactions on behalf of users, is expected to revolutionize the e-commerce landscape, and Checkout.com’s focus on this area positions it to capitalize on this growing trend.

Several other privately held fintech companies have recently introduced similar programs allowing employees to sell their shares in secondary market transactions. In February, Stripe announced a tender offer, enabling early investors and employees to liquidate their holdings at a valuation of $91.5 billion. Similarly, Revolut offered its staff the opportunity to sell shares in the secondary market at a $75 billion valuation earlier this month.