By Liza Tetley on Wednesday 6 April 2022
The transaction saw the private equity house acquire the payments provider for Vinted, La Redoute and Rakuten, and take the majority stake in a French crowdfunding platform Leetchi.
Mangopay, the European payments provider for a number of fintech companies and P2P lenders, has been acquired by private equity software and fintech investor, Advent International.
In addition to the acquisition, Advent plans to invest €75m of primary capital into Mangopay, to “fuel growth through international, vertical and product expansion”.
As part of the transaction, the PE house has also taken a majority stake in Mangopay's parent company - the French charity crowdfunding platform, Leetchi.
“[Advent’s] investment alongside its deep payment expertise and network will help us significantly accelerate our development,” said Romain Mazeries, CEO of Mangopay. “Tomorrow, global exchanges, innovative business models and new consumer habits will bring more complexity and intermediaries to the payments landscape. Mangopay is well-positioned to tackle these challenges.”
Mangopay provides end-to-end payments solutions using developer-friendly APIs to enable platforms and marketplaces to accept payments, onboard sellers and hold and route funds across borders. In addition to its fintech clients it also counts a number of other tech firms such as Vinted, Chrono24, La Redoute, Wallapop and Rakuten as customers. Now boasting over 50 per cent year-on-year growth, the company says it expects to process €13bn worth of transactions in 2022.
Former Amazon vice president, Xavier Garambois, will be joining Mangopay as chairman to help accelerate the company’s growth, alongside the €75m of new capital by Advent.
Since 2008, Advent has invested $6.5bn in 17 payments and fintech companies, with its recent investments including payments providers Medius, Global Processing Services and Planet.
“We have identified Mangopay as one of the leading players in payments for marketplaces and platforms, which is a strategic and highly attractive end market,” said Fabio Cali, Director at Advent. “Over the last two years, we have been following the company and its strong developments under the ownership of Arkea.”
Credit Mutuel Akrea, the French banking group that has been a shareholder since 2015, will retain a minority stake in Mangopay.