Turkish fintech company Sipay, positioning itself as “Stripe for emerging markets,” has successfully secured $78 million in a Series B funding round, bringing its valuation to $875 million. This significant advancement will facilitate Sipay’s plans to expand beyond Turkey, offering services such as remittances that are not currently provided by Stripe in these regions.
The funding, consisting entirely of equity, was spearheaded by U.S.-based investment firm Elephant VC, with additional backing from QuantumLight, a venture capital firm established by Revolut co-founder Nik Storonsky.
Established in 2019, Sipay provides a comprehensive application for managing digital wallets, investments, and loyalty programs. It also offers services such as embedded finance and foreign exchange transactions. Sipay collaborates with organizations like Visa and Mastercard and integrates with Turkish banks and major e-commerce platforms, including Trendyol. The company boasts 6.3 million wallet users and 25,000 registered merchants.
Sipay reports that it has been profitable since 2023, with a fivefold increase in revenue on a year-over-year basis. The company’s claims suggest it concluded the previous year with a run-rate revenue of $600 million.
Nezih Sipahioğlu, founder and global CEO of Sipay, noted that, unlike Stripe which addresses a single issue, there is no all-encompassing fintech solution available in their target markets. He emphasized the diversity of Sipay’s offerings, highlighting that their services operate as a white-label solution akin to Solaris Bank in the U.K., allowing any fintech to issue its own card or wallet through Sipay.
Sipahioğlu also mentioned that the startup had been self-funded until June 2024, when it garnered $15 million in a Series A funding round, led by Anfa.
Peter Fallon, general partner at Elephant VC, stated that Sipay’s emphasis on cross-border payment solutions will promote international growth and trade as markets continue to globalize.
