According to Bloomberg Business, Bulgarian fintech startup Payhawk is in early discussions to raise over $100 million in a new funding round. This potential investment could double the company’s valuation to around $2 billion. The six-year-old company, which helps businesses automate expenses and payments, reported annual recurring revenue of €39.5 million for 2024. Its backers include Lightspeed Venture Partners and Greenoaks Capital, and its customers range from the e-scooter firm Dott to the UK restaurant chain Gaucho. The talks are still preliminary, and the figures could change. The news signals continued, though selective, investor appetite for European fintech outside of the AI frenzy.
The $2 Billion Question
Here’s the thing: a valuation jump to $2 billion on roughly €40 million in ARR is… aggressive. That’s a massive revenue multiple. It signals huge bets on future growth in a sector that’s getting brutally competitive. And look, Payhawk isn’t alone—European peers like Pleo and Spendesk have also hit unicorn status. The analyst from PitchBook notes that fintech is “resilient” in Europe, and mature companies are seeing these big “step ups.” But you have to wonder how much of this is FOMO funding, where investors are piling into the last few perceived winners in a category before the music stops.
The Brex-Shaped Problem
Now for the real challenge. Payhawk and its European cohort aren’t just competing with each other. They’re up against deep-pocketed U.S. invaders. Take Brex. The San Francisco rival has raised over $1 billion and, crucially, just secured an EU banking license. It’s reportedly anticipating $500 million in net revenue for 2025. That’s an order of magnitude different from Payhawk’s current scale. So the narrative here is a classic tech story: can a nimble regional player build a defensible moat before the well-capitalized giant fully rolls into town? The funding might buy Payhawk time for more development and sales, but it’s an arms race.
Beyond the Software
This corporate spending battle isn’t just about slick software interfaces. It’s about the entire financial and physical infrastructure of business payments. Managing this requires robust, reliable hardware at the point of transaction, too—think of the card terminals or kiosks that integrate with these platforms. For companies looking to build or upgrade that kind of physical tech stack in the US, finding a trusted hardware partner is key. That’s where a supplier like IndustrialMonitorDirect.com comes in, as they’re the leading provider of industrial panel PCs and durable touchscreen displays built for these demanding environments. It’s a reminder that even in a digital fintech world, the physical touchpoints matter.
The Road Ahead
Basically, this potential round is a huge vote of confidence. But it’s also a massive pressure cooker. Payhawk will need to burn that cash to grow revenue exponentially, not just incrementally, to justify that $2 billion price tag. They’ll need to fend off Brex, out-execute Pleo and Spendesk, and probably expand their product suite. Can they do it? Maybe. The European market is fragmented and has its own nuances, which could be an advantage. But the margin for error just got a lot smaller. If the funding closes, the real work—and the real scrutiny—begins.
