PayPal Closes $90 Million in Equity Financing
March 6, 2001
Online Payments Leader Cements Strategic Partnerships With Leading Financial
Institutions in Europe and Asia
Demonstrating the power of its business model and the international value
of its brand-name service, online payments provider PayPal today announced
the completion of a $90 million Series D investment round, a strategic placement
that includes the participation of key European and Asian partners that
will work with the company to expand its service internationally. The list
of financial institutions partnering with PayPal, the world's largest Internet-based
payments service, includes leading Spanish bank Bankinter and Japanese Internet
bank eBANK, among others.
PayPal allows people and businesses to send and receive money instantly
and securely via the Internet, currently serving more than 6.5 million customers.
With the closing of Series D, PayPal brings in additional strategic partners
that will help PayPal bolster its international service -- now available
to users in 26 countries.
"As business and consumer adoption of PayPal has continued to grow,
so has partnership and investment interest," said Peter Thiel, CEO
and founder of PayPal. "In light of current economic and private capital
market conditions, this is a testament to the value of the PayPal service
and to the efforts of the PayPal team. We look forward to working with all
our strategic partners to continue to build upon this success."
"As one of the most technologically advanced banks in Europe and the
pioneer of Internet stock trading in Spain, we know that our customers appreciate
the convenience of conducting transactions online,'' said Bankinter spokesman
Jaime Echegoyen. ``By working with PayPal, we continue to deliver valuable
online offerings to customers well beyond traditional financial services."
"PayPal is revolutionizing payments by making them faster, more convenient,
more secure and less expensive to process,'' said Take Wakayama, COO of
eBANK, a joint venture formed by several leading Japanese companies, including
Sumitomo Corp., Itochu Corp., and Hitachi Ltd. ``As an Internet bank focused
on improving payments for businesses and consumers, eBANK is pleased to
partner with PayPal to help create a new, global payment system on the Internet."
Other participants in PayPal's Series D round, which closed February 16,
include ING Group, Providian Financial, and leading French retail bank Credit
Agricole, in addition to new and pre-existing investors. PayPal has raised
approximately $225 million in total equity financing, including a $100 million
Series C round announced on April 5, 2000.
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