Author: Fintech News America

Private Equity Firms Set Sights on Middle-Market Fintech and Payment Companies

Middle-market fintech and payment companies are gaining significance within the broader fintech mergers and acquisitions (M&A) landscape, attracting attention from private equity (PE) firms for their strong growth potential, stable profits margins, and solid customer bases, a new analyst note by private market data provider PitchBook says. Middle-market fintech firms fall between small, early-stage startups and large, established corporations in terms of size and maturity. These companies target mid-sized businesses or consumers, and often specialize in specific products or services tailored to their target audience. They typically generate moderate revenue and hold moderate market presence compared to larger fintech players…

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Robinhood to Acquire Bitstamp

Robinhood has entered into an agreement to acquire Bitstamp, a global cryptocurrency exchange. Bitstamp was founded in 2011 and has offices in Luxembourg, the UK, Slovenia, Singapore, and the US. Acquiring a global exchange will significantly accelerate Robinhood Crypto’s expansion worldwide. Bitstamp holds over 50 active licenses and registrations globally and will bring in customers across the EU, UK, US and Asia to Robinhood. This acquisition will introduce Robinhood’s first institutional business. Bitstamp has been trusted by its institutional clients for reliable trade execution, deep order books and industry-leading API connectivity. With Bitstamp’s other institutional offerings like white label solution…

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Solutions by Text Secures $110 Million Growth Round Led by Edison Partners and StepStone Group

Solutions by Text (SBT), an US based platform for compliance-first messaging and payments, announced raising $110 million in new growth financing . Growth equity investment firm Edison Partners co-led the transaction with StepStone Group, a global private markets investment firm. Stifel Venture Bank, a division of Stifel Bank, provided a lending facility. Since Edison Partners’ initial investment in November 2021, both SBT’s bookings and revenue have grown more than 3X through compliant messaging and payment solutions built for consumer finance businesses across origination, servicing, marketing and accounts receivable use cases. In 2023, SBT’s messaging volume increased 95% from the prior…

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Mexico-Based Commerce and BNPL Fintech Platform Aplazo Secures $70 Million in Equity Funding

Aplazo, a Mexican omni-channel payment platform announced today the closing of $70 million of additional equity financing, including a $45 million Series B. QED Investors led the equity financing, which also included participation from new investor Volpe Capital as well as existing investors Oak HC/FT, Kaszek and Picus Capital. Aplazo has now secured more than $100 million in equity financing and $75 million in committed debt funding since launching in late 2020. The financing round comes on the back of a threefold growth in revenue from rapidly expanding market share among online and offline merchants, as well as strong financial…

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8 Upcoming Fintech Events in South America to Attend in H2 2024

Latin America (Latam) is emerging as a hotbed for fintech innovation, driven by its young, tech-savvy population and government support for digital financial services. In 2021, the number of fintech platforms in Latam and the Caribbean reached 2,482, soaring 112% from 2018, data from a report by the Inter-American Development Bank (IDB), IDB Invest and Finnovista show, underscoring the region’s increasing reliance on digital financial services. At the same time, government initiatives like Brazil’s Pix and Mexico’s CoDi instant payment systems are further propelling the adoption of digital transactions and highlighting efforts by Latam governmental bodies to modernize their financial…

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Securitize Announces $47 Million Strategic Funding Round Led by Blackrock

Securitize, a leader in tokenizing real-world assets announced last week the successful completion of a $47 million funding round led by BlackRock. The strategic investment also includes funding from Hamilton Lane, ParaFi Capital, and Tradeweb Markets. This investment underscores Securitize’s industry pioneering efforts in digitizing capital markets with blockchain technology. The contributed capital will fuel Securitize’s continued innovation and expansion as it further solidifies its position as a leader in the digital asset securities ecosystem. As part of the investment, Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystem Partnerships, has been appointed to Securitize’s Board of Directors. “We are thrilled…

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Permira to Acquire Majority Position in BioCatch at $1.3bn Valuation

BioCatch, a digital fraud detection solution provider, announced that Permira Growth Opportunities II, a fund managed by global private equity firm Permira, will acquire a majority stake in the company. Financial terms of the deal was not disclosed. This agreement also sees increased investments from existing shareholders Sapphire Ventures and Macquarie Capital, aiming to bolster BioCatch’s global presence and product development. The transaction, which involves Permira buying out major shares from Bain Capital Tech Opportunities and Maverick Ventures, values BioCatch at approximately US$1.3 billion. This change comes as BioCatch continues to evolve its capabilities in fraud prevention, having extended its…

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ComplyAdvantage Acquires Golden, Expanding Financial Crime Intelligence Offering

ComplyAdvantage, a leader in financial crime intelligence, announced its acquisition of Golden. Golden is a San Francisco-based innovator automating the construction of one of the world’s largest knowledge graphs, which shows interconnected data points and their relationships for the purpose of analyzing complex information. Financial institutions and other regulated entities are required by law to ensure the people and organizations they choose to do business with are legitimate and that the transactions they facilitate are legal. ComplyAdvantage uses AI and machine learning to parse through a continuously updated database of entities to give clients the most accurate 360-degree view of…

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PayPal Ventures to Ramp Up Investments in AI, Cybersecurity, Crypto

PayPal Ventures, the investment arm of the online payment firm, plans to increase its investment activity to keep up with technological advancements, seeking investment opportunities in fields such as artificial intelligence (AI), cybersecurity, employee benefits and stablecoins, James Loftus, managing partner at PayPal Ventures, told Global Venturing in an interview. Discussing PayPal Ventures’ strategies and investment focuses for the years to come, Loftus said the fund will be shifting towards placing more emphasis on early-stage ventures, especially in Series A rounds. This move aims to gain valuable insights and strategic advantages early on. Investing in early-stage startups allows PayPal Ventures to…

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Betterment Acquires Marcus Digital Investing From Goldman Sachs

Betterment, the largest independent digital investment advisor in the United States, announced that it has reached an agreement with Goldman Sachs to acquire Marcus Invest’s digital investing accounts. Marcus Invest, which offers digitally customized investment portfolios to consumers, will transfer these accounts to Betterment in the coming months. Betterment pioneered digital investing more than a decade ago, and today serves more than 850,000 customers and manages more than $45 billion in assets. Betterment’s diversified, expert-built portfolios, commitment to service excellence, and easy-to-use technology make it a natural fit for Marcus Invest customers as they continue to build towards their financial…

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Andreessen-horowitz-New-Funds-New-Era

Andreessen Horowitz announced that they have just raised $7.2B for the following venture strategies: American Dynamism ($600M), Apps ($1B), Games ($600M), Infrastructure ($1.25B), and Growth ($3.75B). When Ben Horrowitz and Marc Andreessen started the firm in 2009, the conventional wisdom in Venture Capital was that in any given year, only 15 companies would ever generate $100M in revenue and those 15 companies would drive almost all of VC returns. At that time, the conventional wisdom was right. Venture Capital firms configured themselves to address a market of 15 important companies. This meant relatively small fund sizes and a small number…

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Blackrock Launches Its First Tokenized Fund on Ethereum

BlackRock unveils its first tokenized fund issued on a public blockchain, the BlackRock USD Institutional Digital Liquidity Fund (“BUIDL”) BUIDL will provide qualified investors with the opportunity to earn U.S. dollar yields by subscribing to the Fund through Securitize Markets, LLC. “This is the latest progression of our digital assets strategy,” said Robert Mitchnick, BlackRock’s Head of Digital Assets. “We are focused on developing solutions in the digital assets space that help solve real problems for our clients, and we are excited to work with Securitize.” Tokenization remains a key focus of BlackRock’s digital asset strategy. Through the tokenization of…

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10 Fintech Events Taking Place in Q2 2024 in the USA and Canada

North America is a dynamic fintech hub, with major centers located in New York, San Francisco and Toronto. The region excels in areas like digital payments, digital assets, and robo-advisory services. These sectors have propelled the region’s prominence in the fintech sector. Projections by German statistic portal Statista indicate substantial growth in North America’s digital assets market, forecasted to surpass US$41 billion in assets under management (AUM) by year-end. Anticipated revenue expansion of 17.99% is expected in 2025. Likewise, the digital payments sector is on an upward trajectory, with a total transaction value forecasted to hit US$3.36 trillion by the…

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SAP Announces New Commerce Cloud Payment Solution, Drawing on Vast Partner Ecosystem to Help Retailers Gain an Edge

SAP announced a new composable payment solution to help retailers stay ahead of changing customer expectations. The new solution, SAP Commerce Cloud, open payment framework, helps retailers become more agile as new payment options – such as buy now, pay later – gain popularity. The framework integrates SAP Commerce Cloud with numerous third-party payment service providers (PSPs), including Stripe, Adyen, Worldpay and Airwallex, based on their specific use case. Additionally, SAP’s composable architecture allows retailers to pick payment partners tailored to their unique needs and international markets, enabling them to build at their own pace, scale their business faster and…

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Coinshares Completing Acquisition of Valkyrie ETF Business Including US Bitcoin ETF

CoinShares, a European investment company specialising in digital assets, announced the completion of its acquisition of Valkyrie Funds LLC, as well as the Sponsor rights to the Valkyrie Bitcoin Fund, the physically-backed Bitcoin ETF. With the addition of approximately Valkyrie’s $530 million of assets under management , CoinShares’ AUM has increased to approximately $7.3 billion globally as of 11th March 2024. This move accelerates CoinShares’ expansion into the U.S. market and is a further milestone towards building a global asset management franchise. As previously announced, CoinShares has held an option to acquire Valkyrie since November 2023, which was exercised following…

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Visa and Western Union Expand Partnership to Enhance Global Money Transfers

Visa and Western Union have entered into a seven-year agreement to significantly enhance the way money is sent across borders. This collaboration aims to simplify the process for Western Union customers to transfer funds directly to Visa cardholders and bank accounts in 40 countries across five continents. The partnership involves the issuance of cards, integration with Visa Direct for faster money transfers, and the provision of risk management services. Additionally, it will introduce Visa prepaid cards in certain markets, offering a seamless blend of physical and digital payment solutions. Using Visa Direct capability, Western Union customers will be able to…

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Simetrik Raises $55 Million in Series B Round, Led by Goldman Sachs Asset Management

Simetrik, a B2B financial solutions platform founded in 2019 in Colombia, announces a $55-million Series B funding round led by Growth Equity at Goldman Sachs Asset Management. Other investors joining this round include FinTech Collective, which led the Series A, and Cometa, who led the seed round, Falabella Ventures, Endeavor Catalyst, Actyus, Moore Strategic Ventures, Mercado Libre Fund, and the co-founders of Vtex. “This funding marks a pivotal step for Simetrik in reinforcing its role in the rapidly transforming financial sector and expanding its global reach,” says Alejandro Casas, Co-founder and CEO of Simetrik. Simetrik has developed intuitive solutions to…

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Nuvei Launches Direct Local Acquiring in Colombia

Nuvei Corporation, the Canadian fintech company, announces that it has launched direct local acquiring capabilities in Colombia, further expanding its presence in Latin America  and strengthening its overall footprint in the region. Nuvei is the first global payments company to offer direct local acquiring in Colombia, enabling local and international partners to accept card payments from their customers in the country without relying on intermediaries or third-party payment processors. Simplifying payments relationships in Colombia enables eCommerce businesses to maintain greater control over transaction flow management, as well as develop a more localized payments experience for customers. This announcement is the…

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Citi Collaborates With Wellington Management and Wisdomtree to Explore Tokenization of Private Markets

Citi has announced that it has successfully completed a proof of concept on tokenization of private funds along with Wellington Management and WisdomTree. The proof of concept, which was conducted on the Avalanche Spruce institutional test Subnet, found that smart-contract capabilities could deliver new functionality and operational efficiencies, which are currently unavailable with traditional assets. These new functionalities could enable buy- and sell-side institutions to engage with distributed ledger infrastructure in a low-risk, low barrier-to-entry manner that is consistent with regulations. Private markets, although a $10 trillion asset class, are characterized by an infrastructure that is complex and manual, with…

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Apple Claims Expanding Reach in Finance with 12M Credit Card Users and US$10B in Savings Balances

Apple has been steadily expanding its foothold in the financial services industry, with new data released by the company revealing more than 12 million users of its Apple Card credit card product, and US$10 billion in total balances in Apple Savings accounts. In a new blog post published on January 30, 2024, Apple shares growth metrics for its Apple Card product, highlighting the popularity of the credit card among customers. Among the key data, Apple claims that: Apple Card has garnered 12 million users; In 2023, users earned over US$1 billion in Daily Cash from spending on Apple Card; Apple…

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