Scalapay Takes Over Italian Payment Institution Cabel IP to Expand in Europe

Scalapay, a Milan-based fintech company that has developed a payment solution that allows customers to purchase products by paying for them in a limited number of installments (Buy Now Pay Later or BNPL), has acquired the Italian payment institution Cabel IP, which will be renamed Scalapay IP.

Cabel IP, operates predominantly as a service provider for financial intermediaries and corporations, for whom it acts as a highly qualified interlocutor in the field of monetics and payment systems. With an offering that anticipates new business frontiers and accompanies a change in the financial system, the company serves financial intermediaries as an enabler of market changes resulting from digital innovation.

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For Scalapay, the acquisition is an important step in its continued expansion in the European market

Cabel closed its 2021 financial statements with €36 million in net revenues, EBITDA of €3.9 million, and net financial debt of €23 million. Until now, the group was owned by Banca Cambiano (29.6 percent), Trust Pro Bono (20 percent), Castagneto Banca 1910 (19.5 percent), Cassa Centrale Banca (7.6 percent), and other minor shareholders.

For Scalapay, the acquisition is an important step in its continued expansion in the European market. In fact, the company, in addition to Italy, already operates in Spain and France and, with this acquisition will reach other countries through passporting its license.

The acquisition comes after Scalapay reached unicorn status last year with a valuation of €1 billion, having closed a new $497 million mega-round of investment in May 2022, led by Tencent and Willoughby Capital, with the participation of Tiger Global and Fasanara Capital (already investors in previous rounds), Gangwal, Moore Capital and Deimos. This round was then followed a few months later by a $27 million investment by Poste Italiane, bringing the fintech’s total funding up to a total of $727 million.

Previously, in September 2021, the scaleup had raised an additional $155 million, based on a valuation of $700 million

The a round led by Tiger Global and in which Woodson Capital had also participated, in addition to investors from the $48 million January 2021 round, Baleen Capital, Fasanara Capital, and Italian family office Ithaca Investments (which in the fintech sector in Italy has already invested in Fido, Yapily, and Soldo).

Simone Mancini, founder and managing director of Scalapay, about the acquisition of Cabel, said, “Merchants across Europe have adopted Scalapay payment solutions to acquire more customers and increase sales. I would go so far as to say that we are the most loved BNPL provider in Europe judging by NPS (90+) and customer satisfaction ratings. The license will enable Scalapay to offer its slow payment experience to even more countries.” He added, “With the license, merchants can now integrate Scalapay through their Payment Services Provider (PSP). We have a long waiting list of merchants who want to integrate our solutions through their PSP, many of whom are looking for an alternative to other BNPL solutions that do not have the level of visibility that Scalapay has across Southern Europe or has proven to provide less value, taking customers away from them in an attempt to create a so-called super app.”

Founded in 2019 by Simone Mancini together with Johnny Mitrevski, joined by Raffaele Terrone, Mirco Mattevi, and Daniele Tessari, Scalapay has developed an innovative payment solution for online merchants worldwide that allows customers to buy and pay later, interest-free. Scalapay’s BNPL offerings include three options for customers: Pay in 3, Pay in 4, and Pay Later, in which customers are not required to make any payment upfront and can instead choose to pay in 3 or 4 installments or in full after 14 days.

The fintech company boasts more than 3,000 partner merchants, including Decathlon, Calzedonia, Alberta Ferretti, Intimissimi, Liu Jo, Luisa Spagnoli, Moschino, MSGM, Twinset, Bata, Aosom and Bricobravo, Samsonite, Nike, and Pandora. In 2021, Scalapay had sales of €6.6 million, EBITDA was negative €10.5 million, net cash of €12, 2 million, and equity of €22.8 million.

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(Featured image by StartupStockPhotos via Pixabay)

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First published in Be Beez, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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