Earlier today it was reported that GoCardless may be raising $200 in a funding round led by JP Morgan. Last year, GoCardless raised growth capital at a valuation of just under $1 billion and expectations are for the Fintech to be firmly in unicorn territory following this round.
Crowdfund Insider received a comment from Ivan Zhiznevskiy, CEO at 3S money, an online banking service that targets cross border businesses. Zhiznevskiy threw some shade at the report stating, “Unicorn status’ is just another tired buzzword in Fintech. GoCardless’ recent move to seek £200 million from JPMorgan to reach this level is simply another playing piece in the race of power among Fintechs.
Zhiznevskiy said while he is happy to hear about GoCardless’s growth he would rather see Fintech unicorns “putting their money where their mouth is and demonstrating their business profitability by providing genuine value to customers. Not just adding the unicorn badge to their list of achievements.”
“We cannot continue to wilfully look the other way, dazzled by the frankly ridiculous investment figures and valuations we’ve seen in recent months. We need Fintechs to get back to focusing on what’s important – helping customers.“