Dutch payments startup Fero just raised a $3 million seed round led by Coatue with this 11-slide pitch deck

  • Dutch payments startup Fero has raised $3 million in a seed funding round.
  • The Amsterdam-based company landed the funds in a deal led by US investor Coatue.
  • Fero, founded last year, plans to use the capital to expand its teams in Europe and the US.

Fero, a Dutch payments fintech startup, has raised $3 million in seed funding from Coatue, a US hedge fund.

The Amsterdam-based startup, which was founded in 2022, aims to improve customer verification at checkouts and reduce the number of abandoned purchases. Payment authentication, which verifies customer identities, has become much more important for businesses since the implementation of Europe’s PSD2 Open banking regulations.

Fero’s cofounder and CEO Craig Savage stated that the startup wants to reduce the level of friction customers face during the authentication process.

“Today, upwards of 45% of customers place items in their shopping cart, but never finalize their purchase due to payment-related issues,” he went on to say.

“This equates to more than $5.2 trillion in lost revenue per year.” Fero was founded to assist retailers in providing a more seamless and customized shopping experience to their customers.”

Traditionally, customer authentication could be based on ownership of information known only to them, such as a pin or the name of their first pet. By treating all customers the same, many potential transactions are lost, according to Savage. Fero analyzes each shopper’s behavior and activity, as well as their preferences, to predict the likelihood of them completing a purchase and then personalize the process.

“We have a lot of customer detail which gives us a good holistic view of purchases and from that, we can generate certain ideas and information,” Savage went on to say. “By focusing on payment conversion, we get the benefit of knowing about the transaction right away, giving our systems instant learning and looping, allowing us to run and test things right away.”

Before raising this $3 million seed funding round led by Coatue, alongside Volta Ventures and Antler, the company went through the Antler tech startup incubation program. The funds will be used to grow Fero’s team, including its data science and engineering team in Madrid, its Amsterdam office, and its operations in the United States.

Similar Posts

Leave a Reply