The Paymill Bankruptcy? It's a thing of the past. After the Munich-based payment service startup filed for strategic insolvency in April 2016, a buyer for the struggling startup was found in July: the fintech company Klik&Pay.
The months following the acquisition brought many changes for the 60-person team of the former Rocket Internet startup. We spoke with Yannick Decaumont, Paymill's new Managing Director.
How did Paymill end up filing for bankruptcy? When did this become apparent?
Well, that's a clear decision that follows legal principles. If you can no longer meet certain requirements, this is the path to take. However, there are ways to address this with self-administration while maintaining business operations.
Until recently, Paymill hadn't reached the break-even point and was supported by its investors. They changed their focus, and it became clear to us that there was no other way.
What were the first steps when it became clear that things couldn’t go on like this?
Transparency, transparency, transparency: transparency with employees, transparency with customers, and transparency with service providers. Insolvency is part of the cycle, and open communication is essential.
What challenges did the startup face at that time?
In openness, we also point out and seize opportunities: We're moving forward, you can trust us.
Topic: Employees and motivation: Did employees have to be laid off, or did they resign themselves due to the uncertainties?
So, a bit of both: some employees left, others had to leave. There was hardly any uncertainty because we dealt with the issue very openly. We all stood together as a team. You might not believe it, but after talking to the team, we opened some beer and wine and spent the evening together.
Customers: You informed your customers in advance about the strategic insolvency. How did they handle it?
Amazingly good. They understood that this could happen, and through open communication, more than 90% of our customers have remained loyal to us – a huge thank you to everyone for that! For others, it was important to choose a different option because they needed reassurance early on.
Klik&Pay was the buyer: What has changed for you since the merger of the two companies?
Changes have occurred for both companies. Paymill can now draw on the Klik&Pay team's many years of experience and also benefit from their license. Klik&Pay now has access to all marketing and benefits from the Paymill brand.
What will the future of Paymill look like without Rocket Internet?
This question could have been asked two years ago. Rocket, as the parent company, was very important at the beginning; all of its marketing power and brand recognition helped us a lot. But for the past two years, Paymill has become well-known in the market and has matured, so we no longer need this help.
Munich Startup wishes you much success on your future path.
