The FinTech sector remained relatively quiet this week, with FinTech Global reporting on a mere 16 deals across the market.
In the sign of a low-funding week, the highest amount raised this week C$86m by Canadian FinTech Koho. In total, $331m was raised across all reported rounds.
Sector-wise, the FinTech sector pulled in the most deals this week with six deals. Trailing in second was CyberTech with four and InsurTech with three. RegTech pulled in two deals while there was one WealthTech raise.
Here are this week’s deals.
Koho raises C$86m to reinvent banking
Canadian company Koho, known for its innovative approach to banking, has recently marked a significant milestone by raising C$86m.
The company successfully secured an additional C$86 million in a Series D funding round extension, bolstering its valuation to a remarkable C$800 million.
According to Finextra Research, this impressive funding round was backed by a consortium of investors, including Drive Capital, Eldridge Industries, HOOPP, Portage, Round13, BDC, and TTV. Their collective support underscores the confidence in Koho’s vision and the potential impact it can have on the financial industry.
At its core, Koho operates as a modern alternative to traditional banking. The company’s offerings are tailored to meet the evolving needs of its customers, providing them with a full-service spending and savings account. Unique to Koho is its cashback feature on every purchase, complemented by an integrated app designed to aid users in smarter spending and enhanced savings.
ArmorCode closes $40m Series B
This latest injection of $40m, led by HighlandX, elevates ArmorCode’s total funding to an impressive $65m.
ArmorCode stands out in the software security landscape for its unique approach. Founded in the midst of the pandemic in July 2020, the company’s mission is to democratize and simplify software security. Recognizing the rapid pace of digital transformation and the corresponding challenges in software security, ArmorCode has developed a unified platform approach. This platform integrates with any security scanner from any vendor, offering a streamlined solution for identifying and remediating software risks.
The company has seen substantial growth and market traction over the last three years. With a focus on supporting its customers, ArmorCode has shaped its platform to effectively manage software risk across applications, infrastructure, cloud, and the software supply chain. Their success is evidenced by a 400% year-over-year growth in Annual Recurring Revenue (ARR) and a remarkable Net Revenue Retention (NRR) rate of 130%.
RegTech DUST Identity secures $40m in Series B funding
DUST Identity, a company at the forefront of product authentication technology, has raised $40m for its Series B funding round.
At its core, DUST Identity specializes in offering solutions that authenticate products by creating a digital link to their physical counterparts. Initially focusing on high-security applications, the company is now expanding its horizons. It’s venturing into new markets including luxury goods, artwork, game-used apparel, memorabilia, and other unique items. This diversification strategy highlights the company’s adaptability and innovative spirit in the FinTech world.
The new funding will be pivotal in supporting DUST Identity’s expansion into these new markets. Their newly launched mobile solution, which bolsters the authenticity of valuable physical objects, is a testament to their commitment to innovation. The technology enhances traceability and provides unprecedented visibility into the origin of objects, a feature that is increasingly important in today’s market.
In addition to these developments, DUST Identity has entered into a significant partnership with Oxygen Esports. This collaboration with one of North America’s largest multi-title esports organizations will leverage DUST’s mobile solution to authenticate game-used merchandise. This partnership is not only a strategic move for DUST Identity but also a clear indicator of the company’s growing influence in the sports and entertainment sector.
Igloo, Asia’s pioneering InsurTech, raises $36m
Igloo, the first full-stack InsurTech firm from Singapore, announced today its successful closure of a $36m Pre-Series C funding round.
This latest funding round marks a significant milestone for Igloo, showcasing a 50% increase in valuation since its Series B+ round and bringing the company’s total raised funds to $100m.
Igloo stands out as a trailblazer in the InsurTech sector, operating from Singapore with offices across Southeast Asia and tech centres in China and India. The firm is dedicated to making insurance accessible to everyone, utilising big data, real-time risk assessment, and automated claims management to offer innovative B2B2C insurance solutions. These solutions are tailored for platform companies and insurers, aiming to reduce operational risk exposure, generate new revenue streams, and optimise existing products and services.
The newly acquired funds will be directed towards both horizontal and vertical mergers and acquisitions, expanding Igloo’s workforce, and enhancing its product offerings. This includes investment in motor, health, and climate-related insurance products, as well as advancements in underwriting, claims digitisation, and AI and blockchain technologies.
Mine’s breakthrough in data privacy governance secures $30m Series B
Mine, a trailblazing company in the realm of data privacy, announced today the closure of a significant $30 million Series B funding round.
The company’s latest funding influx will fuel the expansion of MineOS, their flagship B2B enterprise-grade product. MineOS stands out for its no-code, user-friendly interface, which integrates advanced AI technology. This combination has set new industry benchmarks in automation and accuracy, revolutionising the data discovery process. Mine’s diverse customer base, including big names like Reddit, HelloFresh SE, FIFA, and Data.ai, underscores the versatility and effectiveness of MineOS.
Mine plans to use the new funds to enhance MineOS’s capabilities. The platform provides a comprehensive suite of data privacy and governance tools, including AI Risk Assessments, Shadow IT Management, Compliance, and Privacy requirements handling. With its customer-centric design, MineOS aims to be the definitive solution for Data Lifecycle Management, catering to over 2,000 customers globally.
UAE’s Flow48 secures $25m for expanding SME financial services
Flow48, a UAE-based fintech startup, recently announced a significant achievement in securing $25 million in pre-Series A funding.
Flow48 stands out in the fintech sector with its innovative platform designed to address the unique challenges SMEs face in securing working capital financing. The platform is remarkable for its real-time functionality, integrating seamlessly with major ERP providers, payment gateways, and e-commerce platforms. By enriching its proprietary risk engine and leveraging data from various sources, Flow48 offers a more precise and efficient credit assessment process, redefining SME lending standards.
Flow48 also engages with SMEs driving positive environmental impacts, such as those in the green energy sector or integrating sustainable practices into their business models. The startup’s diverse client base includes several women and minority migrant-led businesses.
Refine Intelligence launches with $13m
Refine Intelligence, a FinTech company specialising in Financial Crime Greenflagging, announced its launch, marking a significant advancement in anti-money laundering (AML) practices.
Refine Intelligence stands out in the AML industry with its unique focus on “greenflagging” – a novel concept aimed at validating legitimate customer behaviour. Unlike traditional methods which primarily detect account anomalies, Refine’s approach offers a clearer understanding of customers’ life stories, thereby swiftly dismissing false alarms. This distinction positions the company as a game-changer in the sector.
What sets Refine Intelligence apart is its method of providing banks with critical context in real time. By implementing user-friendly digital inquiries and employing AI trained on a unique dataset of genuine customer activity patterns, Refine Intelligence enables financial institutions to effectively distinguish between suspicious activities and legitimate transactions. This approach not only streamlines AML investigations but also improves the efficiency and effectiveness of the process.
January Technologies bags $12m
January Technologies, Inc. has secured $12m in Series B financing in a funding round led by IA Ventures.
The firm plans to utilise its newfound capital to scaling their core product line for the country’s largest financial institutions. This includes launching a solution aimed at addressing creditors’ needs concerning delinquent accounts before reaching the point of charge-off.
Notably, existing investors like Brewer Lane Ventures, Third Prime, and Reciprocal Ventures participated, alongside new investors such as Upper90 and Shrug Capital. This latest tranche follows January’s previous achievement of a $10m Series A fundraise in 2022.
Since that initial fundraise, January has witnessed tremendous growth. It has aided hundreds of thousands of Americans in resolving their debt and paved the way for millions more to tread on the path to financial freedom. The company has significantly increased revenues and client count during this period, achieving a remarkable 5x increase in monthly accounts.
Spade’s $10m funding boost for advancing real-time merchant data
Spade, a trailblazer in real-time merchant intelligence, has recently concluded a successful $10m Series A funding round.
At its core, Spade is redefining the way card issuers access and use merchant data. In an era where nearly two billion credit card transactions are processed daily, Spade emerges as a solution to the outdated infrastructure that has been in place since the 1960s. Their innovative approach addresses the crucial problem of obscured merchant information in transaction data, which has been a long-standing issue for both card issuers and consumers.
The company’s vision extends to using this fresh capital for ambitious goals. Spade plans to expand its team and further develop its merchant intelligence products. More significantly, the company aims to extend its reach beyond the United States, envisioning a global impact on the card ecosystem.
Enfuce, pioneering in issuer processing, raises €8.5m
Finland-based Enfuce, a renowned issuer processing powerhouse, has successfully closed an €8.5m follow-on investment round.
Enfuce, established in 2016, has rapidly emerged as a key figure in the payments industry. As one of the initial companies to transition payment processing to the public cloud, Enfuce has become the preferred partner for leading names like Pleo, OKQ8, and Memo Bank.
They offer a comprehensive suite of services as a global card issuer and payment processor, blending innovation, security, and expertise to deliver cloud-based, modular payment processing solutions. This allows a range of clients, including innovative FinTechs, banks, and non-financial brands, to effortlessly offer card services, digital wallets, and embedded finance solutions.
The recent investment is set to usher in a new growth phase for Enfuce. Heading into 2024, the company plans to expand its reach across key European markets, targeting areas such as Benelux, Germany, and France. This strategic move positions Enfuce to dominate in the enterprise segment and solidify its presence in these significant markets.
Forensic accounting pioneer Valid8 Financial raises $8.5m
Valid8 Financial, a global leader in Verified Financial Intelligence (VFI), has successfully secured $8.5m in Series A funding.
Valid8 Financial specialises in AI-powered forensic accounting solutions. These innovative tools are designed for accounting and law firms, enabling professionals to swiftly unravel complex financial transactions. Their approach transforms the traditionally time-consuming process of dissecting financial data into a more efficient and reliable method.
The newly acquired funds are earmarked for specific growth strategies. Valid8 Financial intends to invest heavily in both its engineering and go-to-market teams. The primary focus will be on enhancing operations at its Boulder, Colorado headquarters, ensuring the company continues to lead the way in its field.
Additional information about the company’s journey reveals an impressive track record. Valid8 Financial’s technology is celebrated for providing verified evidence in complex financial matters, ranging from white-collar crime investigations to high-net-worth divorces. The company’s unique use of AI and automation technologies allows rapid parsing and categorization of diverse financial data, including cryptocurrency transactions.
Mulberri’s AI-driven insurance tech attracts $6.75m in Series A funding
Mulberri, an innovative AI-driven embedded business insurance platform, has recently successfully closed its Series A funding round.
The recent investment round has brought in $6.75 million, led by Eos Venture Partners. Notably, existing investors such as Hanover Technology Management, MS&AD Ventures, and Altamont Capital Partners, through insurance enterprises in its portfolio, have also contributed. This injection of capital marks a pivotal moment for Mulberri, reflecting the strong confidence investors have in its business model and future prospects.
Founded just two years ago in 2021, Mulberri has carved a niche for itself by offering custom-fit insurance solutions specifically tailored for small and medium enterprises. The platform’s strength lies in its deep integrations within the HR, benefits, and payroll sectors, along with other affinity channels for SMEs.
By leveraging these partnerships, Mulberri can provide a wide range of insurance solutions, including brokerage services, risk transfer capabilities, certificate of insurance provision, and sophisticated risk engines. The company’s ecosystem and strategic partnerships grant it access to over 250 PEOs/Payroll Providers/Brokers, covering an impressive base of around 100,000 small and medium enterprises.
Keyless secures $6m funding
Keyless, a UK startup specialising in biometric authentication technology, has successfully completed a significant funding round.
The company, known for its innovative approach to secure identity verification, has raised $6m in this latest round. This financial boost was spearheaded by Rialto Ventures, marking a crucial milestone in Keyless’ journey.
According to Security Week, this round is particularly noteworthy as it represents Keyless’ first major financial foray since becoming an independent entity, following its spin-off from the parent company Sift earlier this year.
At its core, Keyless is dedicated to revolutionising the way we understand and use biometric authentication. The company’s technology is designed to unify the entire identity lifecycle. This includes everything from the initial onboarding and account creation processes to more complex requirements like transaction signing and account recovery, all while adhering to stringent privacy standards like the GDPR.
AI WealthTech Helix by HL clinches $6m seed+ investment
Helix by HL, a generative AI assistant, has marked a new chapter in private market investing with a $6m seed+ investment.
The company, known for its revolutionary approach in the sector, has successfully closed its Seed+ funding round.
At its core, Helix, a product of a joint venture between TIFIN, a leader in AI wealth platforms, and Hamilton Lane, a globally recognised private markets investment manager, is redefining alternative investing.
Launched in June 2023, the platform leverages Hamilton Lane’s proprietary data and deep industry knowledge to simplify the complex world of alternative investments. It empowers wealth advisors with essential tools and insights, aiming for future integration with wealth platforms and digital marketplaces for advisors and investors in private markets.
UK Insurtech CatX secures $2.7m to bridge reinsurance gap
UK InsurTech startup CatX has successfully raised $2.7m in seed funding as the company looks to bridge the gap between supply and demand in the reinsurance sector.
CatX stands out with its innovative platform designed explicitly to ease the flow of capital into the reinsurance industry. The company’s primary focus lies in addressing the scarcity of reinsurance capital crucial for shielding insurers from substantial losses, particularly affecting Property & Casualty (P&C) carriers providing natural catastrophe (natcat) protection and cyber insurance providers.
The company, which was founded by Benedict Altier and Lucas Schneider, is looking to promote diverse capital investment in the market, equipping investors with the comprehensive tools needed to comprehend insurance risks, thus cultivating a more resilient and adaptable insurance industry.
The startup began its affiliation with Y-Combinator in early 2023, and this funding raise continues the company’s strong momentum this year.
Irish startup Cytidel secures €1.35m
Cytidel, an Irish-based SaaS security and business intelligence company, recently announced a significant financial milestone, securing a €1.35m seed round.
This investment round was led by Elkstone Ventures, alongside Enterprise Ireland.
Cytidel specialises in enhancing the efficiency of cybersecurity teams. The company’s innovative risk prioritisation engine plays a crucial role in identifying and mitigating cyber threats, thereby protecting vital revenue streams and customer data. It particularly focuses on enabling businesses to make informed decisions about the cyber risks posing the greatest threat.
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