GIC leads $150m round for US e-commerce start-up Square - report
Singapore sovereign wealth fund GIC Private is said to have led a $150 million Series E round investment in US e-payments start-up Square.
According to The New York Times, the round values the company at about $6 billion. Previous investors Goldman Sachs and Rizvi Traverse Management also participated. Last month the start-up was reportedly seeking to raise $100 million. A Square spokesperson confirmed the company had received new funding but offered no further details.
Square managed to raise $100 million in debt financing from a consortium of banks, including Goldman Sachs, in April. Prior to that it received $200 million in Series D funding in September 2012 from investors including Citi Ventures, Rizvi Traverse, Crunchfund and Starbucks. In total the company has raised $590 million across seven rounds involving 34 investors.
Set up in 2008, Square provides mobile credit card payment solutions to small and medium-sized enterprises (SMEs). The company supplies merchants with a small square card reader that can be plugged into a smart phone for free. In return it takes 2.75% cut on all transactions.
The new funding comes at a time when the firm is launching a new card reader that is compatible with EMV microchip technology, a more secure form of processing credit cards.
More recently the company has sought to diversify its business by introducing Square Capital, a cash advance program aimed at SMEs, and acquiring Caviar, a start-up that offers food delivery services. It also provides a subscription-based appointment booking platform for small businesses.
The news comes at a time when the US e-payments market is taking off with the launch tech giant Apple's Apple Pay platform. Meanwhile, Amazon has released its own credit card reader with a low transaction fee to tempt new merchants and PayPal has launched its reader PayPal Here and cash advance program PayPal Working Capital.
More on North America
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.