Fintech Highlights - 8/13/2024
White House, Harris Advisers Hear Out Crypto Leaders. Revolut plans to sell up to $500 million worth of existing shares. The Zebra buys Marble. And more….
Here's what we've been watching this week 👇
Pinned to the Top
A group of top crypto executives talked with White House officials along with an advisor to Vice President Kamala Harris on a conference call on Thursday, giving their input as the Democratic presidential candidate formulates her policy stance on crypto issues.
Industry executives outlined their concerns about crypto policy. Neither White House representatives nor Harris’s advisor made any promises, according to a person familiar with the discussion.
Among the participants in the calls were top executives from Coinbase, Ripple, Kraken, Circle as well as venture capitalists Mark Cuban, Chris Dixon and Ron Conway. White House deputy chief of staff Bruce Reed, National Economic Adviser Lael Brainard, Deputy Treasury Secretary Wally Adeyemo and Kristine Lucius, a senior adviser and director of legislative affairs for the vice president, were on the call.
The BFD
Revolut reportedly told staff last week of plans to sell up to $500 million worth of existing shares at a $45 billion valuation, according to the Financial Times.
This is notable because, if true, it would make the banking giant Europe’s most valuable startup.
The valuation also marks a significant jump from the $33 billion Revolut was valued at in 2021. As the FT noted, the company is “one of the few fintechs to have increased its valuation since a slowdown in venture capital hit the sector in the past two years.”
In late July, Revolut was granted a banking license from the Prudential Regulation Authority (PRA) in the U.K. — a significant milestone for the London-based fintech company, particularly since it had been trying to secure this license since 2021.
M&A
Sendsprint, an international payment and remittance startup with offices in London and Lagos, acquired U.S.-based global remittance service provider Nobel Financial. More here ->
Flywire (Nasdaq: FLYW) acquired Invoiced, an Austin, Texas, business invoicing platform. More here ->
MUFG buys stake in Philippine fintech GCash for $393 million. More here ->
Insurance comparison site The Zebra buys Marble. More here ->
Fintech
Octane, a fintech for recreational purchases, raised $50m in Series E funding. The company offers digital tools, including a dealer platform and a suite of prequalification tools, which are used by over 4,000 dealer partners More here ->
FranShares, a Chicago-based startup that wants to offer investors another form of passive income: the chance to invest in franchises for as little as $500, raised $4.2 million in seed funding. More here ->
CloudPay, a British provider of payroll and payment solutions, raised $120m. Founded in 1996, it has evolved into a comprehensive provider of managed services that streamline payroll processes, enhance payment efficiency, and improve employee experiences across international borders. More here ->
Stori, a Mexican fintech serving the underbanked, raised $105m in equity funding (plus $107m in debt). Stori's mission is to democratize access to financial services, offering products like credit cards, personal loans, and deposit accounts. The company launched its first credit card in 2020, targeting consumers who have been traditionally neglected by banks. This credit card is notable for its 99% approval rate and its role in helping users build credit. More here ->
Lucky One, an Egyptian credit product company, raised $3m in Series A funding. Founded in 2018 by Momtaz Moussa, Ayman Essawy, and Marwan Kenawy, the company aims to provide financial flexibility and increased spending power to its users, particularly focusing on the unbanked population in Egypt and Morocco More here ->
Crypto
Lingo, a crypto rewards token, raised $15m at a $150m valuation. It aims to facilitate mainstream adoption of cryptocurrency by providing tangible value through partnerships with over 3,000 brands, including Spotify, Netflix, Starbucks, Nike, and PlayStation. More here ->
Insuretech
🚑 Walnut Insurance, a Toronto embedded health insurance startup, raised C$4.6m in seed funding. More here ->
Duck Creek Technologies has launched Policy with Active Delivery, a new product which aims to streamline operations for property and casualty insurers. More here ->
Inscora, a Canadian startup providing automated cyber risk assessments and sales enablement solutions to cyber insurance brokers, has successfully raised $2 million in a funding round. More here ->
Cresso Health, an insurtech providing sales and marketing solutions for health insurance carriers in the U.S., has officially launched. More here ->
Chaiz, a Texas-based marketplace for extended car warranties, has successfully raised $3.7 million in a seed funding round as it seeks to expand its coverage options. More here ->
U.S.-based insurtech startup Faye announced $31 million in Series B funding. What is keeping this online insurance company on the rise? Well, it would appear to be the way it combines travel insurance, assistance while you are away from home, and a range of financial solutions, packed inside a comprehensive smartphone app. It might be said that in the way Lemonade managed to hit a millennial generation with a sexier-packaged insurance platform, Faye has been plowing a similar field. More here ->
From the Stash
Truist lands Wells Fargo tech leader as CIO - Truist is tapping Wells Fargo CIO of Consumer Technology Steve Hagerman to fill its chief information officer role. Hagerman was the “right person at the right time for our enterprise technology team,” a Truist spokesperson told Bank Automation News, noting that selecting a new CIO was a “thorough process.” More here ->
TD cautious about consumer-facing AI - TD Bank is taking a conservative approach to AI for consumer-facing operations as it taps the tech for back-end efficiencies. “We are very knowledgeable about the benefits of the AI and what that might bring,” Christopher Fred, head of U.S. credit cards and unsecured lending at TD Bank, told Bank Automation News More here ->
StanChart invests in fintech M&A company, joining Citi, BNP - Standard Chartered Plc will take a stake in United Fintech Group, becoming the fourth large bank this year to invest in the London-based company as it negotiates new acquisitions to serve the capital markets industry. Standard Chartered will get board observer rights and may later receive a rotational board seat, the two companies said on Thursday More here ->
Robinhood Reports Record Quarterly Revenue as Crypto Trading Jumps - Robinhood reported record quarterly revenue of $682 million, up 40% from a year ago, driven by a surge in trading in crypto and equities. Crypto revenue jumped 161% from a year ago to $81 million, while equities revenue rose 60% to $40 million. Net income increased to $188 million, up from $25 million a year ago. The company’s retirement business, which Robinhood launched in late 2022 in an effort to retain investors as they age, also grew, with assets under custody soaring to $8.7 billion versus $800 million a year ago. More here ->
Crypto-Friendly Customers Bank Hit By Fed Enforcement Action - The Federal Reserve Board announced an enforcement action against Customers Bank after identifying “significant deficiencies” related to its risk management and compliance with anti-money laundering rules for its services for crypto clients. More here ->
Alex Cook, a partner at Tiger Global who oversaw some of its largest fintech investments and India deals, is departing the firm after a tenure of nearly seven years, three people familiar with the matter told TechCrunch. Cook has briefed multiple people around him about his departure news over the past week, although he hasn’t explained why he's leaving. More here ->
The serious, long-term negative impact of the bankruptcy of banking-as-a-service (BaaS) fintech Synapse will be significant - “on all of fintech, especially consumer-facing services,” one observer has said. In the wake of that company’s collapse, other startups in the space are working hard to prove that not all BaaS companies are created equal. More here ->
More from the stash:
PYMNTS
Vaidik Trivedi
Whitney McDonald
Bloomberg News
Reports / Webinars
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