Posted on Feb 11, 2019 2021 at 18:10Updated 11 Feb. 2021 at 19:31
Marketplaces, these platforms that allow merchants to host third-party sellers on their sites, are one of the major economic trends of recent years and have given birth to new giants in each sector of activity.
However, to monetize their vast audience, the nuggets of the sector need reliable and efficient payment solutions. Founded in 2007, the tricolor fintech Lemonway started in crowfunding, but then pivoted to become a partner of choice in the financing of marketplaces.
1,400 partner platforms
“ We collect funds for third parties, we block the money then the sellers are paid in real time ”, explains Damien Guermonprez, executive chairman of Lemonway. For these transactions, the issue of security is important. “The regulator asks us to take care of the payment, but also to check where the money comes from in order to avoid laundering”, explains the entrepreneur.
“We work with 1,400 European platforms”, specifies Damien Guermonprez. In total, Lemonway claims to have opened 8 million e-wallets to its users since its approval in 2012 as a payment institution by the banking supervisor.
In 2020, fintech for example signed contracts with OUI. sncf and the German group Metro and claims to have experienced growth in turnover of 24% – about which it does not communicate. 3.1 billion euros of payment flows were processed, compared to 2.6 billion euros in 2019.
Growth before profitability
Lemonway would have hoped for better, however. “We were affected by the Covid because the activity of some of our historical customers has slowed down”, observes Damien Guermonprez. But the company remains optimistic about the future. “The marketplace system is powerful. Mirakl manufactures them, OVH hosts them and Lemonway wants to take care of the payment ”, summarizes the entrepreneur.
After having self-financed its growth for eleven years, Lemonway has raised 35 million euros with two fundraising (10 million in 2018 and 25 million in 2019) and plans to continue its development by recruiting around twenty employees this year. “Our priority is to grow, not to be profitable. We need to reach a critical size in the payment volume of around 10 billion euros ”, says Damien Guermonprez. Competition is prevented.