Checkout.com valued at $12 billion in employee share buyback

Checkout.com, a leading fintech unicorn, is offering its employees a unique opportunity to cash in their shares through a share buyback initiative. The London-based payments platform announced its plans to launch this program to provide employees with a path to liquidity.

The share buyback program is based on a new internal valuation of $12 billion, which represents a significant decrease from its previous valuation of $40 billion after a $1 billion funding round in 2022. Checkout.com has adjusted its internal valuation multiple times in the past, with valuations of $11 billion in 2022 and $9.35 billion in 2023, as part of its ongoing effort to monitor the value for its employees in its share incentive program.

Competing with industry giants like Stripe, Adyen, and PayPal, Checkout.com processes billions of dollars in transactions annually for major clients such as eBay, IKEA, and Sainsbury’s. The company’s focus on growth and innovation, particularly with the impact of AI and the expected rise of agentic commerce, has positioned it for continued success in the competitive fintech landscape.

Several other private fintech companies have also allowed employees to sell shares in recent months. For example, Stripe announced a tender offer at a valuation of $91.5 billion, while Revolut offered staff the chance to sell shares at a $75 billion valuation on the secondary market.

Checkout.com is on track to exceed its target of 30% core net revenue growth this year and is forecasting $300 billion in annual e-commerce payment volume. The company’s CEO and founder, Guillaume Pousaz, emphasized the company’s relentless focus on growth and innovation as it continues to expand its presence in the global payments industry.

Overall, share buyback initiatives like the one offered by Checkout.com are becoming increasingly popular among startups looking to provide liquidity to employees and investors, especially as tech companies remain private for longer periods amidst a decline in initial public offerings. This strategic move not only benefits employees but also demonstrates the company’s commitment to supporting its workforce and fostering a culture of long-term success.