Square set to raise $ 200 million
If the information from New York Times are proven, the start-up Square, specialized in mobile payment and founded by Jack Dorsey (executive chairman of Twitter), is about to raise $ 200M. The operation would then value the company 3.25 billion dollars.
According to the daily, the round table would be led by Suhail Rizvi, at the head of Rizvi Traverse Management. This private equity company is notably known for having previously invested in Twitter or Playboy.
This would therefore be the third capital increase for Square in the space of two years. Founded three years ago in San Francisco, the company first completed a raised valuing it $ 240M, then a second of $ 100M last summer, which valued it nearly $ 1.6 billion.
Via this heavy successive funding, the mobile payment solution would seek to impose itself on a market occupied by many major players, like Google with Google Wallet, Intuit or even Paypal.
In the first six months of 2012 alone, Square would have seen its number of users almost doubled to reach 2M people. At this current rate, the start-up could pass the milestone, by the end of the year, of $ 6 billion in transactions.
Square recently launched a new payment solution. Called “Pay with Square”, it allows users to pay for purchases without even taking out their mobile. In fact, thanks to this new service, the iPad of partner sellers automatically recognizes customers with a photo. Buyers, who must first download the dedicated application to enter their photo and credit card number, then just have to validate their shopping by saying their name aloud.