This Week in Fintech (6/19)

Hello Fintech Friends,

Today marks Juneteenth in the United States, a commemoration of the end of slavery (and now a federal holiday). It is a much-needed reminder of the racial inequalities that persist today due to systemic injustice.

Racial inequality takes many forms - differences in education, in career opportunities, in criminal justice, in financial access - and results from many drivers. Those drivers are systemic, in that they permeate the basic architecture on top of which society is constructed. The criteria used by a bank loan officer, for example, can have nothing to do with race, and yet generate disparate racial outcomes. But that architecture is a choice, and it is one we can unmake. This simple fact is a reminder to the fintech community of our responsibility to build a better financial system: one predicated on inclusion and justice.

It’s exciting to see community-focused banks like Greenwood, First Boulevard, and Cheese gain traction for that explicit purpose: to provide the banking services to underrepresented communities that legacy financial institutions won’t.

But there is still much work to be done...

(Source: Brookings)

Please find another week of fintech financings and exits below.


Editor’s Note: If you’re an early-stage startup founder raising equity or debt, I may be able to help - reach out to nik@thisweekinfintech.com.


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💸 Venture Financing

  • Shopify, Sequoia Capital, Silver Lake, and others bought up $1 billion of secondary shares from Stripe.

  • Ebanx, a Brazilian cross-border payments platform, raised $430 million ahead of a potential US IPO.

  • Guideline, a provider of 401(k) solutions to small businesses, raised $200 million at a $1.5 billion valuation.

  • ThinCats, a UK alternative lender to SMBs, raised a £160 million strategic investment.

  • 10x Future Technologies, a banking software provider, raised a (confirmed) $187 million Series C. (We reported on the $130 million rumor last week.)

  • Addepar, a wealth management dashboard software, raised $150 million at a $2.17 billion valuation.

  • Paycargo, a freight payment platform, raised a $125 million Series B.

  • DNA Payments, a UK payment processor, raised £100 million.

  • Unit, a banking as a service provider, raised a $51 million Series B.

  • FIA Tech, a technology provider to the futures industry, raised $44 million from industry backers including ABN Amro, Bank of America, Barclays, Citi, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, UBS, and Wells Fargo.

  • Novo, a neobank for SMBs, raised a $40.7 million Series A.

  • Splash Financial, an online loan comparison tool, raised a $44.3 million Series B.

  • FamPay, an Indian neobank for teens, raised a $38 million Series A.

  • Finleap Connect, a European open banking platform, raised €22 million.

  • Hello Alice, a business capital and CFO suite for SMBs, raised a $21 million Series B.

  • Eltropy, a communications suite for financial institutions, raised $21 million.

  • Upflow, a payments collection optimization platform, raised a $15 million Series A.

  • Booste, a Polish revenue-based financing platform, raised a €12 million Series A.

  • Dapp, a Mexican business payments startup, raised a $12.4 million Series A.

  • Goldfinch, a decentralized lending platform for emerging markets, raised an $11 million Series A.

  • Arrived Homes, a residential real estate investing platform, raised $10 million.

  • Coinme, a startup providing crypto enablement to financial services institutions, raised $10 million.

  • nSure AI, a fraud prediction service, raised a $6.8 million seed.

  • Wajve, a financial advisory app for Gen Z, raised a €5 million seed.

  • Change, a crypto investing platform, raised €3.7 million in crowdfunding.

  • Finley, a debt management CMS, raised a $3 million seed.

  • Ophelos, a UK debt collection platform, raised a $2.3 million pre-seed.

  • B9, a financial app for immigrants, raised a $1.7 million pre-seed.

  • Finantier, a Southeast Asian open banking / open finance startup, raised a “seven figure” seed round.

  • Layer, an Irish digital banking transformation platform, is in the market for new funding.

  • TeamApt, a Nigerian agent banking platform, plans to raise funding at a $1 billion valuation.

💵 Debt Financing

  • Residential real estate platform Arrived Homes raised $20 million in debt.

💰 Venture Funds

  • Fintech partner bank Cross River Bank launched its own venture capital arm, Cross River Digital Ventures, to invest in fintech startups.

  • Build-to-rent operator Amro Partners launched a dedicated fintech venture capital arm.

  • European fintech venture capital firm Augmentum Fintech plans to raise a new £40 million fund.

☯️ Exits

💻 IPOs
  • International cross-border payments company Wise (formerly Transferwise) settled on a direct listing on the London Stock Exchange at a valuation of $6 to $7 billion.

  • Angel Oak Mortgage, a mortgage investment fund, priced a downsized IPO, selling 11% fewer shares than expected to raise $137 million.

🤝 M&A - Fintech
  • JP Morgan Chase’s UK arm will acquire personal financial management startup Nutmeg to expand its consumer wealth management offering in the UK.

  • Global payment solutions provider EVO Payments acquired Chilean payment gateway Pago Fácil.

  • Kenyan retail distribution solution provider MarketForce acquired retailer startup Digiduka to bring financial services to more consumers in Africa.

  • UK online payments giant Checkout.com acquired Estonian software development firm Icefire.

  • BearingPoint RegTech, a European banking regulatory technology provider, acquired Irish regtech Vizor Software.

  • Experian acquired tax solution Tax Credit Co. from private equity firm VSS Capital Partners.

  • Vertically-integrated payments solution provider REPAY completed its acquisition of BillingTree for $503 million.

  • Mastercard completed its acquisition of ID verification provider Ekata.

🏦 M&A - Bank
  • Private equity firm Cerberus will acquire the French retail banking division of HSBC.

💲 M&A - Investment Management
  • Private equity giants Ares Management and Maven Capital Partners launched a new firm,Titan Wealth Holdings, built through its acquisitions of Tavistock Wealth (£1 billion AUM) and Global Prime Partners (£2 billion AUM.)

  • Capital markets service provider D.A. Davidson acquired fintech-focused investment bank Marlin & Associates.


Sponsored Content

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