Fintech Update, 6/21 - 6/27
Hi! It’s Monday, June 28, 2021.
Quick note that we’ll be off next week, but we’ll be back in your inbox in July! Wishing you and your families a happy, barbecue-filled, and hopefully mask-free July 4th weekend :) - Team TFU
Leading Off
Following the collapse of their planned acquisition of Plaid, Visa acquired Swedish open banking platform Tink for $2.1B. // In other news, German deposit marketplace Raisin and German banking software provider Deposit Solutions agreed to a merger, Revolut reported that its annual losses doubled, Circle announced that it plans to launch a new API for companies using Circle accounts to manage crypto assets including stablecoins, and Stash acquired financial literacy platform PayGrade. // All this + more below!
Heavy Hitters
Visa acquires Tink. The global payments network is acquiring Swedish open banking fintech Tink for $2.1B. The move follows the collapse of Visa’s efforts to buy American competitor Plaid after regulators nixed the deal for antitrust concerns. Similar to Plaid, Tinks product allows banks to access and refresh aggregated financial data, initiate payments, verify account ownership and build personal-finance management tools. Tink’s technology connects to “roughly 3,400 banks and extends to 250 million customers across Europe,” but it is much smaller than its American rival. The move represents Visa’s second attempt to expand beyond its core business of handling card payments. However, as we learned last time around, the deal remains subject to regulatory approval, and although the EU open banking rules are different, the market in the space is more competitive, and the standards are highly regional, could raise similar concerns for antitrust watchdogs in Europe given Tink’s status as a market leader. We’ll be watching closely!
Quick Takes
German fintechs unite! Two of Germany's largest fintech firms – deposit marketplace Raisin and banking software provider Deposit Solutions – agreed to a merger to create a pan-Europe banking services provider. The combined company, Raisin DS, will “link banks with savers” throughout Europe, “work[ing] with around 400 banks and . . . a deposit volume of around 20 billion euros ($24 billion).”
Revolut losses double. The digital bank reported that its annual losses doubled to $278 million outpacing growth in revenues as “administrative costs rose from investment in risk, compliance and controls.”
Circle to launch API for crypto management. The cryptocurrency firm said it will offer an API for companies using Circle accounts to manage their crypto assets (especially USDC stablecoins) on the platform. The DeFi API will allow users to access “[decentralized finance] protocols without having to manually send USDC tokens to another wallet.”
Stash acquires PayGrade. Stash, the personal finance app, announced the acquisition of financial literacy platform PayGrade. Stash’s CEO said the acquisition is “directly aligned with our mission of empowering everyday Americans to invest for the future.”
UK police seize millions in crypto in AML case. The UK Metropolitan Police’s financial crime unit seized £114 million in cryptocurrency following a money laundering investigation – the “largest ever crypto seizure in the UK and . . . one of the largest globally.”
Pop Flies
The Financial Times explores how fintechs are serving increasingly specific niches amid growing fragmentation in the financial services marketplace and customer demand for specialized products.
Amazon set up a fintech lab at Dubai’s International Financial Centre Innovation Hub, providing fintech-related “mentorship, roundtables, [and] workshops” among other offerings.
Digital assets startup Bakkt launched a Visa backed debit card that will allows customers to use their bitcoin and cash balances to purchase everyday goods and services online or in-store.
Crypto platform Gemini launched Gemini Green, a long-term initiative to incorporate climate conscious practices into its business.
Digital lending platform Blend Labs filed for IPO at a reported likely valuation of $3.3 billion.
a16z raised a new $2.2 billion crypto fund.
Fundings!
Wealth management
Chilean asset management startup Fintual raised $15 million in Series A funding.
Fractional trading provider Gotrade raised $7 million in seed funding.
Lending
Home finance platform Lower raised $100 million in Series A funding.
Credit card platform Deserve raised $50 million Series D funding round.
Dubai-based BNPL provider Tabby raised $50 million in debt financing.
Indian credit card challenger for millennials Slice raised $20 million in Series A funding.
UK-based credit scoring service ClearScore raised £200 million in funding.
Banking
Majority, provider of mobile banking services for migrants, raised $19 million in seed funding.
Payments
Australian SMB banking service provider Zeller raised $37.5 million in new funding at a $300 million valuation.
Dutch payments provider Mollie raised $800 million in new funding at a $6.5 billion valuation.
Crypto
Digital assets securities company Securitize raised $48 million in a Series B funding round co-led by Morgan Stanley.
Finnish digital-asset lender Tesseract raised $25 million in Series A funding.
Crypto-focused cross-border payments provider Mercuryo raised $7.5 million in Series A funding.