Trustly secures $40M from shareholders to support growth plans

Swedish fintech Trustly has secured over $40 million in equity commitments from two key shareholders, a move aimed at supporting its growth strategy. The funding, disclosed today, follows a period of mixed activity in the sector, where some companies have faced challenges in raising capital.

The round is notable for its reliance on existing investors rather than new backers. This approach may indicate confidence in Trustly’s position, though it also suggests a cautious environment for attracting fresh funding. Recent trends, such as FlatPay’s recent funding success (covered in *StartupReader* on 29 September), highlight how only select companies in the region have managed to secure significant rounds.

Trustly’s business model—focused on embedded payments for merchants and banks—has been a staple in parts of Europe. However, like many in the sector, it has navigated a changing market. The $40 million commitment suggests shareholders are opting to support the company’s expansion rather than pursue alternative paths, such as external funding or a sale.

This decision stands in contrast to other fintech activity globally. In the Middle East, Abu Dhabi-based AI fintech Mal accounted for over a third of regional funding in the first half of the year (*StartupReader*, 15 September), while Saudi fintechs have driven SME-focused deals. Meanwhile, Indian credit fintechs like Kiwi are reportedly seeking funding amid a broader slowdown in venture capital. Trustly’s move, by comparison, appears focused on reinforcing its existing operations rather than chasing rapid growth.

The funding environment has shifted, with late-stage rounds becoming less common and valuations under pressure. Trustly’s shareholders—likely institutional players—seem willing to provide capital without immediate returns, possibly due to the company’s established relationships or financial stability. The round feels more like a strategic step than a traditional venture investment.

What comes next remains to be seen. Trustly has not detailed specific expansion plans, but the funding could support new initiatives or market entry. If the company leverages its core strengths—regulated payment infrastructure—it may strengthen its position. Alternatively, if growth slows, the $40 million could serve as a temporary measure. For now, the funding underscores how some fintechs are relying on committed backers to navigate uncertain conditions.

Sources: tech.eu