Pleo, which sells corporate expense management software and linked “smart” payment cards, has boosted its valuation to $1.7 billion in a $150 million equity financing round. The investment, led by Bain Capital Ventures and Thrive Capital, makes Pleo the latest privately-held tech company in Europe to surpass the coveted $1 billion “unicorn” valuation. Pleo makes about 70% of its revenue from interchange fees taken from a merchant’s bank account every time a customer uses their card. The other main chunk of the company’s sales comes from paid subscriptions.
Following the investment, Bain Capital Ventures’ Keri Gohman will join Pleo’s board. Gohman previously held executive positions at accounting software provider Xero and U.S. bank Capital One. Pleo is also a rare example of a billion-dollar tech company emerging in Denmark. Pleo’s founders were early employees at Tradeshift, a $1.1 billion fintech that was originally based in Copenhagen but relocated to San Francisco.