FinTech
Digital payments alone could become a $100 trillion industry, according to PwC. And that’s just one component of the global Fintech industry. This channel tackles the lenders and buyers, the obstacles and achievements, and the trends and trend makers leading the ongoing technological evolution in global finance.
Top Story
Swedish fintech company Klarna achieved a significant improvement in its financial performance during the first quarter, as it halved its net loss compared to the same period last year. The company reported a net loss of 1.3 billion Swedish krona ($120.7 million), down 50% from the previous year’s loss of 2.6 billion krona.
Get Daily Updates
Subscribe to DailyAlts Today to get Alternative Investment news, insight, and commentary delivered straight to your inbox every day.
More Stories on FinTech
FinTech: Aeropostale Launches Brand Presence On the Metaverse
Fashion brand Aéropostale has partnered with MetaversePlus and Authentic Brands Group to create an immersive experience for its fans in the metaverse. The partnership will use non-fungible tokens (NFTs) and virtual experiences to build community and offer members-only perks and promotions.
Venture Capital: Saudi Arabia’s Venture Arm To Invest $80M In Fintech VC Firms
Saudi Venture Capital Company (SVC) has partnered with the Capital Market Authority (CMA) and the Financial Sector Development Program to launch a new investment program called “Investment in Fintech VC Funds”. The program aims to stimulate the establishment of venture capital funds in the financial technology (FinTech) sector. Around SR300 million ($80 million) has been earmarked from SVC’s investment portfolio for this new initiative, which was launched at the Financial Sector Conference 2023 in Riyadh.
FinTech: PhonePe, India’s Highly Popular Payment Network, Raises $200M From Majority Owner Walmart
PhonePe, a fintech platform, has raised an additional $200 million in primary capital from Walmart (NYSE: WMT) at a pre-money valuation of $12 billion. The company is in the process of raising $1 billion following its move to domicile in India, and has raised $650 million from several global investors so far.
FinTech: E-Commerce Focused, Corporate Credit Card Issuer Parker Raises $157M
Parker, a charge card built specifically for e-commerce, has raised $157 million in total funding to support the growth of online brands. The card offers differentiated features such as limits based on business performance, rolling terms, emphasis on credit duration over rewards, and software tools to help business operators invest in their best projects.
FinTech: Stripe Raises $6.5B At A Heavily Truncated Valuation Of $50B
Payment processor Stripe raised $6.5 billion in a non-dilutive Series I financing round, valuing the company at $50 billion, down almost 50% from the record valuation of $95 billion in garnered in a 2021 funding.
FinTech: Lenovo and Tabit Tie-Up To Offer BNPL To Small Businesses In Canada
Lenovo (HKG: 0992) has partnered with Tabit, Canada’s first B2B Buy-Now-Pay-Later (BNPL) solution available at Point-of-Sale, to offer their business customers financing options of up to 12 months, including a 30-day interest-free option. This partnership will help small businesses access immediate and fully automated financing at the point of sale, relieving cash flow pressure while benefiting from attractive payment terms and a seamless customer experience.
FinTech: Indonesian Fintech Broom, Which Finances Auto Dealers, Nabs US$10M
Indonesian automotive SME solutions startup Broom has secured $10m in a pre-Series A funding round led by Openspace Ventures, with participation from MUFG Innovation Partners, BRI Ventures and existing investors AC Ventures and Quona Capital.
Digital Assets: Federal Support Action For Resolving SVB And Signature Bank Crises
The US Government has taken swift action to stem the economic backlash from the failures of Silvergate Bank, Silicon Valley Bank, and Signature Bank. While Silvergate and Signature were both crypto-focused banks, Silicon Valley was the go-to bank for the venture capital industry. Silvergate, however, voluntarily chose to down shutters. A statement from the Department of Treasury detailed a concerted strategy to protect depositors at SVB and Signature.
FinTech: Depositors Relieved After HSBC Acquires SVB UK For £1
HSBC has acquired Silicon Valley Bank UK for £1 in a rescue deal that was confirmed by the UK Treasury. HSBC will take on the accounts of SVB UK’s 3,500 customers with deposits worth more than £6.7bn, and the customers will be able to access their deposits and banking services as normal.
FinTech: Worldline Launches White-Label Shopping Mall In The Metaverse
Global payment services provider, Worldline, has launched a shopping mall in Decentraland to help companies across all industries get an easy entry into the Web 3.0 world, and create an initial presence in the Metaverse. The white-label solution provides retailers, service providers, and banks with an opportunity to prepare for the Metaverse now and gain initial experience ahead of the estimated global market volume of Metaverse commerce of between $2 and $2.6tn by 2030.
FinTech: Uber May Hive Off Uber Freight, Its Truck Broking Business
Uber (NYSE: UBER) is considering spinning off its Uber Freight logistics unit in a sale or as a separate publicly traded company in order to focus on its core ride-hailing and food delivery businesses. The company is discussing options with advisers, but no decision has been taken and plans could change, according to a Bloomberg report, which cited confidential sources.
FinTech: Alternative Credit Firm Evolution Credit Raises Over $1B
Boston-based alternative credit firm, Evolution Credit Partners Management, has announced the final close of its opportunistic credit strategy, Evolution Credit Opportunity Fund II, L.P. (ECO II). With approximately $1.05 billion of investable capital, the Fund will invest opportunistically across Evolution’s entire credit platform, including leveraged finance and trade finance strategies.
Fintech: Stripe Raising Funds To Buy Employees’ Shares And Cover Their Tax Bill
Stripe, a payments company, plans to use the funds it raises in its latest round of fundraising to cover a $3.5 billion tax bill. The company is aiming to raise $2.3 billion to cover tax withholdings in Q1 and an additional $500 million and $700 million in taxes later this year and next year respectively, according to a Bloomberg report.
Venture Capital: UK Fintech Abound Lands $601M
Abound, a UK-based consumer lending service, has raised £500m ($601m) in equity and debt funding to expand its open banking business. The start-up, which uses open banking data and machine learning algorithms to offer lower interest loans and develop “better credit scores”, will use the funds to finance loans, bring in more customers and invest in its technology.
FinTech: WhatsApp Gets Brazil’s Nod For Payments To Small Businesses
Guilherme Horn, PhD, Head of WhatsApp, Latin America, announced that Brazil’s Central Bank has authorized the launch of the payment service for small and medium-sized enterprises through WhatsApp.
FinTech: Klarna Reports Record $1B Loss In 2022
Klarna, the Swedish fintech company that was once Europe’s most valuable private tech firm, has reported its largest annual loss to date in 2022, but is optimistic about its prospects for returning to profitability. The company’s annual losses increased by 47% to SEK10.4bn ($1bn) in the 12 months to December 31, 2022, up from SEK7.1bn ($680m) in the previous year.
FinTech: Zenus Bank Ties With Visa To Issue Debit Cards Across 46 Countries
Zenus Bank and Visa (NYSE: V) have extended their partnership, and Zenus has become the first bank to launch a single Visa Infinite Debit Card to customers across the globe. Zenus offers true US bank accounts remotely to people in over 46 countries and provides a virtual Visa Infinite debit card, and a physical card can be received in under 10 days.
FinTech: Payments Giant Stripe May Accept A Lower, $50B Valuation In Funding Round
As negotiations progress, investors are reportedly seeking to lower the Stripe valuation. Payments processing company Stripe has reduced the valuation of its $55 billion fundraise by around 10%, according to sources cited by The Information. The valuation has been reduced from $23 per share to around $20 per share, bringing the company’s overall valuation down…
FinTech: CoreLogic Acquires Digital Mortgage Platform Roostify
CoreLogic (NYSE: CLGX), a property information and analytics provider, has acquired digital mortgage platform Roostify for an undisclosed amount. The integration of Roostify’s digital lending platform with CoreLogic’s data and analytics suite will allow lenders to access important data on borrowers and properties early in the lending process, resulting in a faster and more efficient customer experience with lower underwriting expenses.
FinTech: Revolut Reaches Profitability Milestone In 2021
Revolut has reported revenues of £636.2 million ($766.9 million) in 2021, three times what it made the previous year, and swung to a net profit of £59.1 million. The main drivers of its profitability were higher subscriptions to its paid packages and growing use of its app.
FinTech: Italian Paytech Nexi Buys 80% Of Banco Sabadell’s Merchant Acquiring Business For €280M
Italian paytech company Nexi (BIT: NEXI) has acquired an 80% stake in the merchant acquiring business of Banco Sabadell (BME: SAB), the second-largest merchant acquirer in Spain, for €280 million. The transaction reflects an Enterprise Value of 350 €M for 100%. The business is expected to generate an EBITDA of around 30 €M based on 2023 figures, resulting in an implied EV/EBITDA 2023E of ~11.5x.
FinTech: Hong Kong-Based FundPark Provides Collateral-Free Loans To SMEs
Hong Kong-based start-up FundPark is seeking a new round of fundraising to help small and medium enterprises (SMEs) access trade finance. Unlike banks, FundPark provides SMEs with a range of financing options for working capital without collateral requirements.
FinTech: FinTech Powers LatAm E-commerce Giant MercadoLibre Inc To Quarterly Profit
Mercadolibre (NASDAQ: MELI), a leading e-commerce company in Latin America, reported better-than-expected profits in Q4, leading to a surge in its stock price by over 6% during Thursday’s extended session. The company’s earnings per share for the quarter were $3.25, exceeding consensus estimates by $0.93. The 40.8% increase in revenue from the previous year was also slightly higher than analysts’ expectations.
Digital Assets: Binance And Ingenico Tie Up For In-Store Crypto Payments In France
Ingenico, the world leader in payment acceptance solutions, has partnered with Binance, the world’s largest blockchain ecosystem and digital asset exchange, to offer an in-store cryptocurrency payment acceptance solution in France.