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.
Fast-growing, Southeast Asia-focused payments infrastructure platform Xendit closed on a US$300 million Series D funding co-led by Coatue and Insight Partners with additional investment from Accel, Tiger Global, Kleiner Perkins, EV Growth, Amasia, Intudo, and Justin Kan’s Goat Capital. BaaS platform Unit announced a $100 million Series C led by Jeff Horing of Insight Partners, with participation from existing investors Accel, Better Tomorrow Ventures, and Flourish, as well as new investors Stepstone, Moving Capital (Uber alumni syndicate), and prominent fintech angels.
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A Reuters exclusive report said digital payments processor Stripe Inc had hired a law firm to advise on a potential listing. Stripe is reckoned as the most valuable US tech startup after it garnered a valuation of $95 billion in a $600 million fundraising round in March. Investors included Allianz X, Baillie Gifford, Sequoia Capital, and Ireland’s National Treasury Management Agency (NTMA).
That model is clearly working because Clearco has so far paid out $2.4 billion to 5,500 founders in the e-commerce, mobile app, and enterprise software segments. Today (July 8, 2021) the company said it raised $215 million in an equity funding round led by SoftBank Group Corp’s Vision Fund 2.
App-based Atom Bank, which calls itself the UK’s first bank completely for mobile, hit two major milestones this week on the same day: More than £3bn of residential mortgage completions and £1bn in deposits into its Instant Saver accounts. The growth has encouraged the company enough to reconfirm its intention to go public in the next two years.
Fintech Wise Plc (LON: WISE) on Wednesday pioneered the direct listing route for a tech company going public on the London Stock Exchange (LSE), and in the process, garnered a solid capitalization of £8 billion ($11 billion). Apart from turning founders Taavet Hinrikus and Kristo Kaarman into billionaires, Wise’s bumper listing also marked a win for the UK, which has set its heart on turning London into a fintech superhub after Brexit.
Revolut, the British challenger bank, and its advisers have sounded a select group of investors on an investment between $750m (£542m) and $1bn (£723m), according to Sky News. The report, which cited “industry sources,” also said SoftBank’s Vision Fund 2 is one of those investors, and that the round, if successful could value Revolut at a massive $30 billion or more.
ClearScore, the UK-based fintech that provides free credit scores to everybody (forever) announced it had received an investment of $200 million, at a valuation of $700 million, from Invus Opportunities, the global equity investor. Existing investors QED, Blenheim Chalcot and LeadEdge, together with management, retained the majority of their positions in ClearScore, but allowed Invus Opportunities to take a significant minority position in the company.
Visa (NYSE: V) announced Thursday its deal to acquire European open banking platform Tink for €1.8 billion ($2.2 billion) as it moves to take advantage of European Union law – the revised Payment Services Directive (PSD2) – which facilitates open banking. The law requires banks to allow access to customer data by registered third-party providers to boost competition.
Fast-growing Dutch payment service provider Mollie announced Tuesday its closing of a US$800 million in a Series C funding round led by Blackstone Growth. TCV who led the Series B investment in September 2020 also participated in the funding round along with EQT Growth, General Atlantic, HMI Capital and Alkeon Capital.
Revolut, the London-based challenger bank led by Nikolay Storonsky, reported its numbers for the year ended December 31, 2020 on Monday. Though the financial superapp reported strong growth on various metrics including customer base, gross margins and revenue, it incurred a total loss of £168 million for the year, up 57% from 2019.
Dutch digital banking challenger bunq, which offers a completely mobile-based, branch-free banking experience, is to raise €160 million ($190 million) at a €1.65 billion (nearly $2 billion) valuation. Pending regulatory approval, the transaction is an investment from an unnamed UK-based private equity company for 10% of Bunq’s equity. As part of the deal, bunq will also acquire a small business lender from the same investor.
According to Entrepreneur, Credijusto, the Mexican fintech and lending platform acquired Banco Finterra for about $50 million, in the process bagging a banking license. Banco Finterra specializes in financing solutions for the agri-food sector.
This is the first time a tech company is going public via a direct listing in London. Wise, previously known as TransferWise, announced Thursday its decision to go public via a direct listing on the London Stock Exchange. The company justified a direct listing in favour of an IPO on grounds that it is “a…
FinTech: 10X, The Fintech Founded By Ex-Barclays Chief Antony Jenkins, Rakes In $187M To Scale Massively
Founded in 2016 by Antony Jenkins, former CEO of Barclays (LON: BARC), fintech 10X Future Technologies has raised $187 million from a clutch of bulge bracket investors. The firm’s oversubscribed Series C was co-led by BlackRock (NYSE: BLK) and Canada Pension Plan Investment Board (CPP Investments). Existing investors JPMorgan Chase (NYSE: JPM), Nationwide (LON: NBS), Ping An (SHA: 601318), and Westpac (ASX: WBC).
Major investors last month snapped up $1 billion worth of shares from existing shareholders in Stripe in a tender offer that received as much as $4 billion in bids according to the WSJ.
Temenos (SIX: TEMN), a global leader in banking software, announced the successful launch of Virgin Money Australia on the Temenos Banking Cloud. Fully integrated digital banking, bringing together credit cards, transaction and savings accounts, plus a loyalty program and personal financial management tools into a single, native mobile app, is now available to Virgin Money customers.
Clip, a Mexican digital payments and commerce platform founded in 2012, announced June 10, its raise of $250 million in a round led by the SoftBank Latin America Fund and Viking Global Investors LP. The round valued Clip at approximately $2 billion.
Klarna, the Swedish fintech best known for its buy-now-pay-later offering, announced today its raise of $639 million in a round led by SoftBank Vision Fund 2. It included participation by Adit Ventures, Honeycomb Asset Management and WestCap Group, all existing investors. Klarna achieved a post-money valuation of a staggering $45.6 billion.
With the award of the two licenses, which marks a further push in favor of fintech banking in Southeast Asia, the Philippines central bank has greenlighted a total of three banks for digital banking in the country. It awarded a license to state-backed Overseas Filipino Bank in March. Tonik had received its initial rural bank license from the BSP in 2019, allowing the neobank to provide retail banking services focused on retail deposits, card payments, and consumer loans. It claims its digital license is the first for any private and purely digital bank in the country.
Brazilian digital bank Nubank, the largest fintech in Brazil and one of the biggest in the world, on Friday closed a $750 million funding round that included an investment of $500 million by Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A).
Challenger bank Dave, which is backed by billionaire Mark Cuban and other investors such as Norwest, Section 32, Capital One, The Kraft Group, SV Angel, and The Chernin Group, said today it was going public by merging with VPC Impact Acquisition Holdings III, Inc. (NYSE: VPCC), a so-called Special Purpose Acquisition Company or SPAC.
Shinhan Bank, one of South Korea’s oldest and largest national banks, and a part of the Shinhan Financial Group (KRX: 055550) has integrated Wise Platform from the U.K.-based fintech Wise. Shinhan becomes the first South Korean bank to offer international money transfers without any exchange rate markups.
SaaS cloud banking platform Mambu announced Wednesday that PT Bank Jago Tbk (Bank Jago) (IDX: ARTO) an Indonesia-listed bank, has become its first customer in that country. Bank Jago, which is embarking on a path to become a technology-based bank, will implement Mambu’s SaaS banking platform on the Google Cloud.
Wise has rolled out its foreign remittance services for Indians, offering them transactions that are much faster and cost significantly less compared to legacy banks. Indian citizens can now send money to 44 countries globally, including the UK, US, Singapore, Malaysia, UAE, and other countries in the Eurozone. Wise previously did business as TransferWise.
The largest Series C funding globally by an insurtech has been achieved by Berlin-based wefox, the startup announced today. The round, which valued the company at US$3 billion post-money, was led by Target Global. In 2020, wefox reported a profit for its insurance business, wefox insurance, making it the first digital insurance company to become profitable. Furthermore, wefox’s revenue increased to $143M in 2020, doubling its 2019 revenue.