Biggest Turkey’s Fintech Param Acquires Czech Twisto

Biggest Turkey’s Fintech Param Acquires Czech Twisto

Time Stamp: August 17, 2023 3:11 AM
Biggest Turkey’s Fintech Param Acquires Czech Twisto PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The
European financial technology market has just become a bit more competitive, all due to
the appearance of Param, one of the largest Turkish fintech. Wanting to open up to a
broader market, it acquired Twisto, a company focusing on Central and Eastern
Europe from the Buy Now, Pay Later (BNPL) sector.

Twisto, one
of the Czech Republic’s pioneering fintech companies, was procured from its
former owner, Zip Co. This strategic move not only fortifies Twisto’s future
but also grants it increased financial stability and growth potential,
especially intending to turn profitable by 2023.

Furthermore,
Param’s current UK operations, which offer domestic and international
transfers, will now witness a broader outreach. With this acquisition, it aims
to extend its services to Twisto’s primary markets, including the Czech
Republic, Poland, Germany and the Netherlands.

Supported
by globally recognized equity firms like the European Bank for Reconstruction
and Development, RevoCapital, and others, Param delivers a myriad of financial solutions. These span from advanced payment solutions, open banking, and
customer loyalty programs to its own BNPL service, Kredim. Through their
combined expertise, Param and Twisto cater to over 85,000 merchants,
associating with prominent brands from Turkey and others globally.

“Europe
is a core focus for us as we continue our bold, yet healthy and sustainable,
expansion strategy,” Emin Can Yılmaz, the Founder and CEO of Param, commented. “Our proven business model and innovative solutions have already set a
gold standard, and we are excited to introduce our technology and embedded
finance solutions to eight European markets.”

Mutual Benefits of the Acquisition

Param was
Turkey’s first e-money institution and remains unique in holding four distinct
card schemes. Concurrently, Twisto is among the frontrunners introducing
the Czech Republic to the BNPL model, now accounting for over 33 million
transactions and a transaction value approaching €845 million.

Their
collaboration aims to craft tailored offerings catering to varied industry
needs. Param’s primary focus lies in its B2B2X proposition, targeting expansion across Europe. This segment is expected to grow exponentially,
reaching an estimated $440 billion in annual global revenue by 2030.
Meanwhile, Twisto plans to diversify its product range further.

What’s
more, Param has consistently demonstrated profitability since 2014. With year-over-year
growth of 90% last year, it has a transaction value of over €4.2
billion.

“In
Param, we have found a partner that has proven time and time again the strength
of its business model, and thirst for payments innovation,” Michal Šmída,
the CEO of Twisto, commented. “We believe that with this know-how, Param
will make a significant contribution to the further sustainable growth of
Twisto.”

Fintech in Distress?

Param is
becoming more prominent in the European market while the Old Continent is
witnessing a significant slowdown in funding. In the first half of 2023, it
shrank by more than half compared to the previous period.

In the
second half of 2022, fintech funding amounted to $63.2 billion, which was spread across
2,885 deals. Yet, the first half of 2023 witnessed a decline, with funding dropping
to $52.4 billion from 2,153 deals, as reported by the Pulse of Fintech, a
publication by KPMG. This demonstrates a notable decrease in both total
funding and the number of deals.

A report
released in early July by Innovative Finance further validates these findings.
Its data suggests a total capital investment of $27.3 billion across 1,714
deals, representing a decrease of 14% from the latter half of 2022. On a global
scale, the financial technology sector witnessed a reduction in funding of 30%,
totaling $95 billion for the year.

The
European financial technology market has just become a bit more competitive, all due to
the appearance of Param, one of the largest Turkish fintech. Wanting to open up to a
broader market, it acquired Twisto, a company focusing on Central and Eastern
Europe from the Buy Now, Pay Later (BNPL) sector.

Twisto, one
of the Czech Republic’s pioneering fintech companies, was procured from its
former owner, Zip Co. This strategic move not only fortifies Twisto’s future
but also grants it increased financial stability and growth potential,
especially intending to turn profitable by 2023.

Furthermore,
Param’s current UK operations, which offer domestic and international
transfers, will now witness a broader outreach. With this acquisition, it aims
to extend its services to Twisto’s primary markets, including the Czech
Republic, Poland, Germany and the Netherlands.

Supported
by globally recognized equity firms like the European Bank for Reconstruction
and Development, RevoCapital, and others, Param delivers a myriad of financial solutions. These span from advanced payment solutions, open banking, and
customer loyalty programs to its own BNPL service, Kredim. Through their
combined expertise, Param and Twisto cater to over 85,000 merchants,
associating with prominent brands from Turkey and others globally.

“Europe
is a core focus for us as we continue our bold, yet healthy and sustainable,
expansion strategy,” Emin Can Yılmaz, the Founder and CEO of Param, commented. “Our proven business model and innovative solutions have already set a
gold standard, and we are excited to introduce our technology and embedded
finance solutions to eight European markets.”

Mutual Benefits of the Acquisition

Param was
Turkey’s first e-money institution and remains unique in holding four distinct
card schemes. Concurrently, Twisto is among the frontrunners introducing
the Czech Republic to the BNPL model, now accounting for over 33 million
transactions and a transaction value approaching €845 million.

Their
collaboration aims to craft tailored offerings catering to varied industry
needs. Param’s primary focus lies in its B2B2X proposition, targeting expansion across Europe. This segment is expected to grow exponentially,
reaching an estimated $440 billion in annual global revenue by 2030.
Meanwhile, Twisto plans to diversify its product range further.

What’s
more, Param has consistently demonstrated profitability since 2014. With year-over-year
growth of 90% last year, it has a transaction value of over €4.2
billion.

“In
Param, we have found a partner that has proven time and time again the strength
of its business model, and thirst for payments innovation,” Michal Šmída,
the CEO of Twisto, commented. “We believe that with this know-how, Param
will make a significant contribution to the further sustainable growth of
Twisto.”

Fintech in Distress?

Param is
becoming more prominent in the European market while the Old Continent is
witnessing a significant slowdown in funding. In the first half of 2023, it
shrank by more than half compared to the previous period.

In the
second half of 2022, fintech funding amounted to $63.2 billion, which was spread across
2,885 deals. Yet, the first half of 2023 witnessed a decline, with funding dropping
to $52.4 billion from 2,153 deals, as reported by the Pulse of Fintech, a
publication by KPMG. This demonstrates a notable decrease in both total
funding and the number of deals.

A report
released in early July by Innovative Finance further validates these findings.
Its data suggests a total capital investment of $27.3 billion across 1,714
deals, representing a decrease of 14% from the latter half of 2022. On a global
scale, the financial technology sector witnessed a reduction in funding of 30%,
totaling $95 billion for the year.

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