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Welcome back to The exchanger, where we look at the hottest fintech news from the previous week. If you’d like to receive The Interchange straight to your inbox every Sunday, visit here register! Last week we chronicled some big events in fintech, Intuit’s decision to shut down Mint and what that means for startups and much more. Continue reading!
The return of mega-towers
Last week felt like 2021. Well, sort of.
There have been at least three nine-figure fintech funding rounds announced in the past week. It’s pretty rare these days to see ONE nine-figure spin, let alone two or three. So we were excited to say the least.
First, I covered the Brazilian banking-as-a-service startup Tech IQ $200 million increase led by General Atlantic. It was a big deal, in addition to being a lot of money, because it was also the biggest venture capital round in Brazil so far this year – not just in fintech, but in all sectors. The company was kind enough to share its revenue figures, which is also not very common, noting that its revenue increased by 89% in the first half of 2023 compared to the same period last year. It also proves that infrastructure continues to demonstrate resilience, even during this downturn. Earlier this year, Visa announced it would acquire Brazilian payments infrastructure company Pismo in a billion-dollar deal.
Meanwhile, in the Middle East, Tiger caught $200 million in a Series D funding round this valued it at $1.5 billion. I was a little surprised that a buy now, pay later platform would attract so much venture capital given that so many in the industry have faced challenges over the past year. But TC’s Tage told us that the markets Tabby operates in don’t have the same kind of access to credit cards that we have in the United States. He wrote: “As a result, BNPL constitutes a crucial source of credit; Where it is considered convenient in developed markets with many credit options, it is essential for many consumers in the Middle East and, by extension, the Gulf. Tabby is also profitable!
And finally, based in Palo Alto, California Next insurance announced that he had Landed $265 Million in Strategic Capital of Allianz and Allstate. As CNBC reports, Next is “approaching $1 billion in premium revenue but remains unprofitable.” In April 2021, TechCrunch reported that the SMB-focused insurance provider had raised a $250 million funding round for a valuation of $4 billion.
Together, the three fintech companies raised $650 million alone. And it’s worth noting that two of the three companies were in markets outside the United States.
While I don’t think this means we’ll suddenly see regular mega-towers, it’s still encouraging news for space!
You can listen to Alex Wilhelm, Becca Szkutak and I (Mary Ann) delve deeper into the topic on Friday’s episode of Equity:
Where are all the Mint users going?
Now that Intuit says it does Stop its personal finance app Mint in January, the company hopes that most of Mint’s customers will stay and join Credit Karma. However, some of Mint’s competitors told me they’re already seeing an increase in new customers.
The company shared via email that over the past week it has seen “twice as many users” since the news was announced. After the story was published, Monarch executives responded to me that the normal registration rate increased to 10x and ended the day 20x higher.
I then heard from a number of other Mint competitors, including Copilot co-founder Andrés Ugarte, who told me that November 2 was the “biggest day in the company’s history.” . Like Monarch, Copilot, which we covered here And here in 2020, is a subscription-based personal finance tracker, and even from the first story, it was attacking Mint.
“We are currently receiving more than five times the number of users we see daily,” Ugarte said via email.
I covered Plenty’s pre-seed round in May, which offers couples a platform to manage their finances together. Emily Luk, co-founder and CEO, said via email that the startup surveyed hundreds of millennial couples who manage their finances online and found that of the 90% who had tried Mint, only 10% used it Again. Their reason? “Budgeting and reporting is too granular for this stage of their life, or too much work to maintain,” Luk said.
“Mint was part of the latest generation of products that helped people track and monitor their finances,” Luk said. “The next generation will help people actively manage their money. »
Many are still in waiting list mode; However, following this news, the startup added a drop-down item on its waitlist to measure whether new users who sign up are looking to replace Mint. If so, those individuals will get early access and a way to import transaction history before Mint’s January 1 deadline.
In the meantime, Origin had a well-timed launch on November 3. The startup claims it is “the first personal finance platform to provide holistic net worth tracking, AI-powered financial advice, automated investing, easy tax filing, estate planning, and the opportunity to meet people. a certified financial planner. It’s too early to know if Mint’s shutdown will affect user signups, so hopefully I’ll be able to come back with an update. -Christine
Revolution, the UK-based fintech giant, has appointed a new CEO for its UK division. Francesca Carlesi will be responsible for the Revolut division in her home country, and Nik Storonsky remains CEO of Revolut Ltd. It’s worth noting that today’s news comes as Revolut still does not have a UK banking license after years of back-and-forth with UK regulators. The company has applied for a UK banking license back in 2021. More here.
Unit, which raised $100 million at a valuation of $1.2 billionhas launched a white-label app that it says allows software companies to integrate banking and lending into their platform “with a single line of code.”
Klarna employees were due to strike next week in Sweden, the fintech’s home country, according to reports. tech.eu articles. But late last week, the strike was called off. Via email, Klarna CEO and co-founder Sebastian Siemiatkowski told TechCrunch on Friday that “after an intense week of negotiations,” the company had reached an agreement to join the Bank Employers’ Organization by January 1, 2024. here.
As reported by Yahoo Finance, PayPal announced third-quarter results “that beat analysts’ estimates on both revenue and profit.” The fintech company reported adjusted earnings of $1.30, compared with estimates of $1.23. Revenue of $7.42 billion was slightly higher than the $7.39 billion expected. The company’s shares “closed up nearly 7% at $55.06 on Thursday, as strong full-year profit forecasts also eased market jitters over slowing spending.” , as the newspaper reports. Reuters. Interestingly, the company’s new CEO, Alex Chriss, said American banker: “Our cost base is too high and this is slowing us down. The company’s direction is unclear.
Neon Money Club last week became the first black-owned technology company in the United States to launch an American Express card: “According to information provided to AfroTech (and cited by Yahoo Finance), Neon Money Club — co-founded by Luke Bailey and Jackie Liao — has entered into a partnership with American Express (Amex) ‘to start an American Express card. credit card that will challenge norms with its design and benefits, including allowing users to invest rewards points in the US stock market. » » Hear Bailey in this article from TC’s Dominic-Madori Davis. here.
Other articles we read:
Financing and mergers and acquisitions
As seen on TechCrunch
Charlie’s Senior-Focused Banking Dedicates New Funds to Fight Fraud (The round came just six months after the company announced and launched its seed funding round. Since then, it has amassed “thousands of users,” according to its CEO.)