STOCKHOLM (Reuters) - Fast-growing financial technology business iZettle is set to be one of the biggest European fintech companies to list after announcing plans on Tuesday to join the Nasdaq Stockholm stock exchange this year.

An entrance of the iZettle company is pictured in the headquarters in Stockholm, Sweden, August 12, 2016. REUTERS/Violette Goarant

The mobile payments firm and operator of e-commerce platforms for small businesses in Europe and Latin America is planning to raise around 2 billion Swedish crowns ($227 million) in the IPO, to fund continued growth.

After Spotify SPOT.N joined the New York Stock Exchange in April, iZettle would be the second largest Swedish tech firm to list in 2018. Its rivals include Square Inc SQ.N, a U.S. mobile payments company which went public in 2015.

“I personally think, having been in the tech sector for a long time, that it’s incredibly nice to be able to bring a Swedish tech company out on the Swedish stock market,” co-founder and Chief Executive Jacob de Geer told Reuters.

“Until now our focus has been growth, growth and growth. During the coming years that is still our ambition,” he said, adding the loss-making company should reach its new long-term EBITDA net margin target of 30-35 percent in 2023.

Established in 2010, iZettle is known for offering small businesses and individuals a way to take payments using mini credit card readers that turn smartphones or tablets into cash registers. The main part of its revenue comes from payments, for which it charges a transaction fee.

iZettle was aiming for a total valuation of at least 10 billion crowns when it lists, business daily Dagens Industri said last month on its tech site Di Digital, citing sources.

iZettle plans to list this year “depending on market conditions”, it said in a statement, adding that its listing application had been approved by the Nasdaq Stockholm stock exchange.

It could face competition for investor interest after sources told Reuters last month that Dutch fintech firm Adyen was eyeing a listing in June.

The Stockholm-based company has set an annual net revenue growth target of at least 40 percent in the medium term and positive consolidated EBITDA by 2020.

Lancelot Asset Management analyst Johan Dyrstad said that if iZettle would reach its targets, “it looks really exciting.”

“The company already has a much better gross margin than Square,” he said. Square had a gross margin of 38 percent last year versus iZettle’s 68 percent.

The Swedish company’s revenue surged to 966 million crowns last year from 641 million crowns in 2016, while the operating loss narrowed to 228 million crowns from 244 million in the previous year.

The company’s advisors include Carnegie, JP Morgan, Barclays, ABG Sundal Collier and Nordea, it said in Tuesday’s statement.

($1 = 8.8156 Swedish crowns)