Param, Turkey's biggest FinTech, is entering the European market with the acquisition of leading CEE Buy Now, Pay Later (BNPL) provider Twisto.
Setting the scene for wider global expansion, Param is introducing its technology and integrated embedded finance products and services to Europe.
One of the first Czech FinTechs, Twisto was acquired from previous proprietor Zip Co for an undisclosed sum. The transaction reinforces the company’s future, providing it with financial resilience and opportunities for growth as it aims for profitability in 2023.
An FCA-approved electronic money institution, ParamUK currently allows customers to make international and domestic transfers in the UK. The acquisition will enable it to expand its footprint across Europe, starting with Twisto’s core markets – Czech Republic and Poland – as well as Germany and the Netherlands as the next new markets.
Param is backed by leading international private equity firms and funds including the European Bank for Reconstruction and Development (EBRD), CEECAT, Alpha Associates and RevoCapital. The company offers a wide range of embedded finance solutions to SMEs and large corporations. This includes sophisticated online and offline payment solutions, open banking, customer loyalty, wallet services, prepaid cards, collections and its own BNPL service and SME lending business called Kredim. Its consumer-focussed digital solutions provide user-friendly, secure, and seamless payment experiences.
Combined, Param and Twisto serve 85,000+ merchants. Param is the preferred payment partner of major brands in Turkey, such as Shell, Michelin, Getir, Panasonic, Burger King, IKEA and others. Meanwhile, Twisto’s customers include international brands including Answear, Allegro, KFC and Pizza Hut. The acquisition will not impact Twisto’s operations, existing partnerships, or management team. The focus will be on providing more enhanced products and services to clients, merchants and partners, and exploring new synergies with Param customers.
Emin Can Yılmaz, Founder and CEO of Param, said: “Europe is a core focus for us as we continue our bold, yet healthy and sustainable, expansion strategy. 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. Not only does the acquisition give us the opportunity to expand our position in the FinTech ecosystem; but it also represents a meeting of minds. Twisto already claims the #1 position in Buy Now Pay Later (BNPL) services in Czechia with a strong, recognisable, and top-of-mind brand awareness. Twisto puts consumers at the core of its business and continuously innovates to deliver reliable and value-adding products to its customers. There is a significant overlap between Twisto’s business model, the Founders’ vision and the Group”
First-to-market synergies
Param has been a Fintech of firsts since its inception. It was the first e-money institution in Turkey – and still stands out as the sole e-money institution holding four card schemes: Visa, Mastercard, Troy, and Discover.
With Kredim, Param introduced the BNPL model to Turkey, now boasting 500,000+ total loans. Meanwhile, Twisto also became one of the first to bring the BNPL concept to the Czech Republic in the form of deferred payments. In early 2022 it launched a major product innovation, Pay in Three, and on top of its BNPL products offers a fully fledged credit app delivering revolving and instalment facilities to consumers. Since inception, Twisto has processed over 33 million transactions with a Total Transaction Value (TTV) of €845 million and growing.
While the remit of both companies extends far beyond BNPL, they share a common drive to bring creative new solutions to the market and innovative products for consumers. By aligning their highly skilled teams and technology capabilities, together Param and Twisto aim to continue customising offerings to meet the needs of diverse industries.
Param is focused on its B2B2X proposition, aiming to roll out its comprehensive solutions across Europe. A fast-growing segment, B2B2X is set to power the next era of Fintech – predicted to grow at a 25% CAGR to reach $440 billion in annual revenues globally by 2030.
Meanwhile, Twisto intends to broaden its product suite, integrating embedded finance solutions, payments, prepaid cards, digital wallets, BNPL, SME lending and loyalty programmes.
The holy grail of profitability
Ranked the most valuable FinTech in Turkey, Param is highly profitable and has been EBITDA positive since its inception in 2014. The company has seen 90% year-on-year growth in TTV in the last 12 months to June 2023, totalling over €4.2 billion.
Its cash-generation capability enables Param to grow steadily and invest, capturing new growth opportunities in Europe. The combined TTV potential of the Param Group is estimated to reach €20 billion per year. The acquisition also puts Twisto on the path to becoming EBITDA positive in 2023.
"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. We believe that with this know-how Param will make a significant contribution to the further sustainable growth of Twisto, as we get closer to achieving profitability. In the meantime, we will continue to look for new quality growth opportunities in our region and Europe with the certainty of support from Param," Twisto CEO Michal Šmída commented.
Royal Park Partners acted as the exclusive financial and strategic advisor to Twisto and its shareholders throughout the transaction.
Odin Financial Advisors acted as the exclusive financial and strategic advisor to Param and its shareholders throughout the transaction.