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GoCardless acquires Latvian open banking connectivity startup Nordigen

GoCardless Nordigen

UK fintech GoCardless has announced the acquisition of Latvian open banking firm Nordigen, which claims to have the widest open banking connectivity in Europe.

GoCardless has not disclosed the acquisition fee, however, Nordigen is estimated by Dealroom to be valued at $9m to $14m.

Nordigen provides access to open banking data through a freemium model. Its API connects more than 2,300 banks across Europe and serves fintech companies in 31 countries across the continent.

Nordigen’s open banking network will be incorporated into GoCardless, adding the Latvian startup’s services to its existing product line.

Nordigen has previously raised $3.4m (£2.8m) in total funding, with the last fundraise being a £1.8m seed round in June 2021.

“Over the past few years, it’s been amazing to watch open banking grow from a trend on the horizon to a global phenomenon which has given rise to a market worth over $400bn,” said Hiroki Takeuchi, co-founder and CEO of GoCardless.

“The Nordigen acquisition will take us to the next level. By intelligently combining free, state-of-the-art open banking connectivity with deep payment expertise, we can now offer open banking-as-a-service to any developer, partner or fintech.”

The acquisition deal is expected to close later this summer.

“We share GoCardless’s excitement about the growth of open banking,” said Roland Mesters, CEO of Nordigen.

“We’re delighted to join forces with a group of people who not only share our passion for driving game-changing innovation in financial services but will also help us bring free open banking access to a far wider audience.”

GoCardless joined the growing list of UK fintech unicorns in February, after a $312m (£230m) Series G funding round left the firm with a valuation of $2.1bn (£1.55bn).

Founded in 2011, GoCardless manages direct debit collections on behalf of more than 60,000 businesses and merchants around the world.

GoCardless’ Takeuchi spoke to UKTN in March, discussing the journey of the company and advice for future founders.