PayTech companies led this week’s FinTech funding rounds, accounting for seven of the 25 deals.
The FinTech sector returned to full force following a slower week. Last week, there were just 13 FinTech funding rounds reported on by FinTech Global While there was a sizable uptick in deals completed, the volume of capital raised this week was not much higher. A total of $736m was raised by FinTechs last week, while this week saw $848m raised by the companies.
While the funding isn’t much higher, six companies did not reveal how much they raised, so the amount of capital raised this week is not entirely clear.
Of the companies to secure funds this week, PayTech giant Zip led the pack with its $190m Series D. The investment round, which was led by BOND, raised Zip’s valuation to $2.2bn. The US-based company revolutionizes the procurement landscape by integrating a consumer-grade interface that simplifies the purchasing process akin to online shopping, ensuring compliance, cost-efficiency, and streamlined operations.
PayTech was the dominate sector of the week, accounting for seven of the deals, including four of the top ten deals. These companies are: Zip, DailyPay, Finix, AFS, Akua, CardFlight and PayToMe.co.
Three sectors were tied with their amount of deals. CyberTech, InsurTech and RegTech each saw four deals. The CyberTechs are Reality Defender, Stream.Security, Cyber Guru and Protostars, the InsurTechs are Inspectify, Agentech, Onesurance and Aurora, and the RegTechs are Interos, Socket, Tookitaki and Authologic.
As for the other sectors contributing to this week’s deals, there were three WealthTech deals (Moneybox, Uprise and Monark Markets), two marketplace lending funding rounds (Valon and Agrolend), and an infrastructure and enterprise software deal (Interface.ai).
In terms of countries, it comes as no surprise that the US was the domineering force. The country housed 14 of this week’s FinTech deals (Zip, DailyPay, Valon, Finix, Interos, Socket, Reality Defender, Inspectify, Uprise, Agentech, Monark Markets, CardFlight, Interface.ai and PayToMe.co).
The UK was the only other location to home more than one FinTech deal this week. The UK-based FinTechs are Moneybox and Aurora. Other countries represented in this week’s deals are Brazil (Agrolend), Bahrain (AFS), Israel (Stream.Security), Italy (Cyber Guru), Poland (Authologic), Colombia (Akua), Ireland (Protostars), the Netherlands (Onesurance) and Singapore (Tookitaki).
Research from FinTech Global this week found that FinTech in Latin America is having a strong year for funding.
During H1 2024, LATAM FinTech funding increased by 15% YoY. A total of $1.1bn was raised during the first six months of the year, compared to the same period in 2023 when $1bn was raised. While funding was up, deal activity was down. Only 79 deals were recorded in the first half of the year, marking a 58% decline compared to the 189 deals completed in H1 2023.
Here are the 25 FinTech funding rounds covered by FinTech Global this week.
Zip boosts valuation to $2.2bn with $190m in Series D raise
Zip, an enterprise software firm, has raised $190m in a Series D funding round, boosting the company’s valuation to $2.2bn.
This latest financial injection was led by BOND, with new backers including DST Global, Adams Street, and Alkeon joining alongside long-term investors such as Y Combinator and CRV.
In an era of digital transformation, Zip stands out for its innovative approach to procurement—a sector traditionally plagued by inefficiencies. Annual corporate expenditure on procurement runs into trillions, representing the second-largest area of business spending after payroll. Despite its significance, the sector has historically suffered from outdated processes that are both time-consuming and costly.
Zip’s platform revolutionizes the procurement landscape by integrating a consumer-grade interface that simplifies the purchasing process akin to online shopping, ensuring compliance, cost-efficiency, and streamlined operations. This transformative strategy has yielded significant savings for major corporations like Snowflake, Discover, and Sephora, with more than $4.4bn saved and over $107bn processed through the Zip system in less than four years.
The fresh capital will be strategically allocated to various growth initiatives. Zip plans to double down on its research and development efforts, focusing on its successful Procure-to-Pay (P2P) product line and expanding into new product categories to meet evolving market demands. Additionally, the establishment of the Zip AI Lab will further enhance its suite of AI solutions, improving integration with existing enterprise systems.
Moreover, Zip aims to accelerate its global outreach, particularly in the EMEA region, leveraging its new London office and expanded team to cater to the growing demand in key markets like the UK, Germany, and France.
DailyPay bolsters financial strength with $100m credit boost from Citi
DailyPay, a New York-based worktech company, announced a significant enhancement to its credit facility, having secured an additional $100m from Citi.
This boost doubles Citi’s previous commitment, bringing their total to $200 million.
The total revolving secured debt facility commitment for DailyPay now stands at $760m, which includes contributions of $500m from Barclays, $200m from Citi, and $60m from TPG Angelo Gordon. This extensive credit facility will enable DailyPay to continue providing robust financial services to its growing list of clients.
As the leading provider of earned wage access, DailyPay offers a technology platform that allows employees from various industries, including those at Fortune 500 companies, to access their earned wages before payday. This service helps workers manage their finances more effectively, reducing the need for high-interest credit products and improving overall financial wellness.
The new funds will be used to further enhance DailyPay’s platform capabilities and expand its client services, ensuring the company maintains its leadership position in the worktech sector.
Latham & Watkins LLP provided legal counsel to DailyPay during the financing transaction.
Valon secures $100m in Series C to transform the mortgage industry
Valon, a trailblazer in mortgage technology, has successfully secured $100m in a Series C funding round.
The round was led by WestCap, with both new and existing investors participating. This infusion of capital highlights Valon’s progression from an emerging startup to a leader in the mortgage servicing sector, setting the stage for significant industry innovation.
Valon, known for developing the first modern vertically integrated mortgage servicing platform, aims to correct historical inefficiencies in mortgage data management.
The company’s journey began with the goal of addressing inaccuracies stemming from outdated servicing systems. These systems often provided noisy data that, while sometimes beneficial for market investments due to misinterpretations, represented a clear inefficiency in the industry.
This latest round of funding will be directed towards accelerating the development of Valon’s technology. With a robust pipeline of new products and features and a growing clientele, Valon is poised to exceed its ambitious targets and redefine the standards of mortgage servicing.
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
Moneybox raises £70m ($90m) in new investment, valuation hits £550m
Moneybox, the award-winning UK saving and investing platform, announced today that it has welcomed new investors Apis Global Growth Fund III and Amundi, enhancing its robust investor base.
These new partners join a lineup of prestigious existing investors, including Fidelity International Strategic Ventures, Oxford Capital, Breega, Burda, and CNP.
The company has successfully raised around £70m, facilitated primarily through a secondary share sale allowing existing investors to sell 10-15% of their current shares.
Moneybox provides a dynamic range of financial products and services aimed at helping individuals save, invest, buy homes, and plan for retirement. With over one million customers, the platform is designed to simplify financial management, enabling users to accumulate wealth effortlessly.
The fresh capital will be used to drive further innovation and growth, strengthening Moneybox’s market position. The company, which recently surpassed £10bn in Assets Under Administration (AUA) and reported a 168% revenue increase last fiscal year, is poised for continued expansion.
Additionally, this funding round highlights Moneybox’s commitment to its 35,000-strong shareholder community. Through the secondary share sale, these shareholders, including crowdfund investors and employee shareholders, will have the opportunity to realise part of their investments due to the company’s strong growth trajectory.
Finix secures $75m in Series C to enhance no-code payment solutions for businesses
Finix, a leading full-stack payment processor, has successfully closed a $75m Series C funding round.
This investment was led by Acrew Capital, with Leap Global and Lightspeed Venture Partners co-leading, and saw significant participation from new stakeholders including Citi Ventures and Tribeca Venture Partners. This round also welcomed continued investment from existing backers such as Homebrew, Insight Partners, and Inspired Capital.
Finix specializes in facilitating both online and in-store payments, allowing businesses of all sizes to seamlessly integrate payment systems with minimal technical input.
The fresh capital will be channelled towards enhancing Finix’s comprehensive suite of payment processing tools. Notable among these is their no-code offerings which simplify payment integration and management, making advanced payment functionalities accessible to all businesses without the need for technical expertise.
Finix has made significant strides in product development and market expansion. Over recent years, they have transitioned into a direct processor, gaining the capability to handle payments independently. This shift has enabled them to offer more tailored, reliable, and cost-effective services. Furthermore, the introduction of their no-code product suite, including tools like Checkout Pages and Virtual Terminal, represents a key evolution in their service offering, allowing businesses to customize payment experiences effortlessly.
Finix’s expansion has not been limited to product innovation alone. They have also extended their geographic reach, launching services in Canada and enhancing their cross-border payment solutions to facilitate smoother transactions between the U.S. and Canada.
Agrolend raises $53m in Series C to bolster agri-finance in Brazil
AFS secures $50m capital boost to expand digital payment solutions
Arab Financial Services, a digital payments solutions firm and FinTech enabler in the Middle East and Africa, has successfully secured $50m.
According to Zawya, this funding, endorsed by AFS shareholders at an Extraordinary General Meeting earlier this year, aims to strengthen the company’s financial health and fuel its ambitious expansion strategies.
The company has announced that the capital will be channelled into broadening its operational base, enhancing its current product lineup, and fostering innovation within the digital payments sector. Arab Financial Services is renowned for its robust service offerings, including advanced solutions like AFS Pay and AFS One, which serve a wide array of merchant categories.
With this fresh infusion of capital, AFS is well-positioned to accelerate its growth plans. The funds are earmarked for territorial expansion, scaling operations within existing markets, and capitalizing on its Payment Services Provider license in Egypt to enhance its acquiring market activities. In the UAE, AFS is on course to introduce merchant acquiring services and is also eyeing the African market to expand its processing business.
Boosting AI capabilities, Interos secures $40m from Blue Owl Capital
Interos, the trailblazer in AI-powered supply chain risk intelligence, has just fortified its financial footing with a substantial $40m growth capital investment from Blue Owl Capital.
This move is a part of a broader trend where Interos, renowned for its robust AI insights, is increasingly trusted by over 100 Fortune 1000 companies and key federal agencies.
The recent funding is underpinned by a strong history of support from esteemed investors such as NightDragon, Kleiner Perkins, and Venrock. Strategic investments have also flowed in from industry giants including Accenture, Coupa, and ServiceNow. This collective backing empowers Interos to amplify its AI-driven insights, significantly enhancing how enterprises and governments manage global supply chain risks.
Interos will leverage the $40m investment to augment its product-led growth strategy, further deepening its AI capabilities. This strategic infusion will broaden its multi-vector go-to-market model, aiming to enrich customer value across the board.
In an increasingly interconnected world, supply chains have become vulnerable to a variety of global threats, including geopolitical tensions, cyber attacks, and severe weather conditions. Interos offers its clients real-time visibility into their supply chains, effectively mapping and monitoring systemic threats to mitigate both present and future risks.
Socket raises $40m in Series B to enhance software supply chain security
Socket, a leading platform in software supply chain security, has just secured a significant $40m in Series B funding.
The round was spearheaded by Abstract Ventures, with noteworthy participation from Elad Gil and Andreessen Horowitz (a16z). This latest financial boost brings Socket’s total raised funds to $65m, underpinning its mission to revolutionize security for open-source software.
This San Francisco-based company is at the forefront of battling software supply chain attacks by proactively monitoring open-source packages for threats such as backdoors and typo-squatting. By focusing on real-time threat detection, Socket protects companies against malware and other security risks that compromise applications and services.
The fresh capital will be channelled into expanding Socket’s team, enhancing its technology, and driving product development. Specifically, the funding will bolster engineering, product, and design capacities, equipping Socket to meet the rising demand for robust software security solutions.
Reality Defender secures $33m to combat AI-generated deepfakes in FinTech
Reality Defender, a startup specializing in detecting deepfake and AI-generated media, has secured $33m in its Series A funding round.
According to Security Week, the investment round included contributions from a diverse group of backers including Illuminate Financial, Booz Allen Ventures, IBM Ventures, the Jeffries Family Office, Accenture, DCVC, and The Partnership Fund for New York City.
Reality Defender is at the forefront of developing technologies aimed at mitigating risks associated with synthetic media. These risks include fraud, misinformation, and identity spoofing, which pose significant challenges to the integrity of information within various sectors, particularly in financial services.
Founded in 2021, the company has developed a robust multi-model, multimodal technology that is capable of detecting AI-generated content at scale. This innovative solution works across different media types, including audio, video, images, and text, addressing enterprise-level concerns over synthetic media manipulation.
The new funding will be utilized to broaden the company’s technological capabilities and expand its operations into the financial sector. This move is aimed at enhancing the detection and prevention of deepfake-related risks that threaten the security and reliability of financial information and transactions.
Stream.Security lands $30m Series B to bolster cloud security capabilities
Stream.Security, the innovator in real-time cloud security solutions, has successfully closed a substantial $30m Series B funding round.
This round was led by U.S. Venture Partners, accompanied by contributions from new investor Citi Ventures, and returning investors such as Energy Impact Partners (EIP), Cervin Ventures, TLV Partners, and Glilot Capital Partners VC.
The company specialises in providing advanced security operations with its unique Cloud Twin technology. This system is pivotal in modelling real-time cloud threats and exposures, thereby accelerating the response capabilities of security operations centres. The technology Stream.Security offers enables rapid identification of attack vectors within ever-evolving cloud infrastructures, significantly reducing both false positives and the mean time to respond to threats.
With this new influx of capital, Stream.Security plans to enhance its innovative platform. The funding will be used to further develop their Cloud Twin technology and expand its deployment across global enterprises, strengthening their ability to preemptively tackle cloud security threats.
The necessity for sophisticated cloud security solutions has never been more apparent, as traditional monitoring and alert-based approaches prove inadequate in today’s dynamic cloud environments. Stream.Security’s platform provides a critical alternative by offering a real-time, cloud-native solution that addresses the rapid pace at which threats evolve in the cloud space.
Among the valuable testimonials underscoring the efficacy of Stream.Security’s offerings, Petr Zuzanov, SecOPS Architect at RingCentral, highlighted how the platform has been instrumental in identifying and mitigating previously undetected threats. Similarly, Niv Schlomo, Vice-President of Cloud Operations at Kaltura, praised the platform for its role in accelerating their investigation processes by correlating behavioural anomalies with real-time cloud context.
Cyber Guru raises $25m Series B to boost cybersecurity awareness and AI capabilities
Cyber Guru, a cybersecurity training and awareness platform based in Rome, has secured $25m in a Series B funding round.
The round was led by Riverside Acceleration Capital, a U.S.-based growth equity firm, with additional support from Educapital, Europe’s largest investment fund focused on EdTech and the Future of Work, alongside existing investor P101.
Founded to address human vulnerabilities in cybersecurity, Cyber Guru offers an innovative security awareness training platform that combines machine learning with behavioural science.
The platform aims to transform employees from potential risks into the first line of defence against cyber threats, providing adaptive training designed to improve organisational resilience to cyberattacks. Since its inception, the platform has gained traction across Southern Europe, currently serving more than 700 organisations and training over 1m active users in 90 countries.
With the new funding, Cyber Guru plans to scale its AI-driven contextual training strategy, investing in sales and marketing to support its expansion across Europe. The company aims to enhance its Go-To-Market operations, further strengthening its position in the cybersecurity training space.
Authologic secures $8.2m Series A to combat AI-driven identity fraud
Authologic, a global digital identity verification platform, has successfully completed an $8.2m Series A funding round.
The round was led by the prominent European venture capital firm OpenOcean, with notable participation from YCombinator, Peak Capital, and SMOK VC.
Authologic addresses a critical vulnerability in traditional KYC systems that depend on document images for digital identity verification. As artificial intelligence advances, it has become increasingly easy to produce counterfeit documents, rendering these outdated methods more susceptible to fraud, identity theft, and compliance failures. Businesses can no longer rely on legacy systems to ensure secure identity verification.
The challenge is further compounded by the fragmentation of identity verification systems across various borders and platforms, particularly in sectors governed by stringent KYC and AML regulations, such as financial services, gaming, telecoms, and cryptocurrency. With the impending requirements of eIDAS 2.0 mandating that all regulated companies accept e-IDs, many organisations face significant hurdles, especially their AML departments.
Customers today expect quick, secure, and seamless digital experiences. Authologic’s platform replaces manual verification processes with a streamlined user experience, facilitating a modern, frictionless onboarding process that caters to the convenience customers demand, while simultaneously safeguarding their privacy. This transformation leads to quicker onboarding times, reduced fraud risk, and lower operational costs, ultimately enhancing customer satisfaction.
Authologic’s unified e-ID platform integrates hundreds of e-ID systems, bridging the gap between legacy infrastructures and the future of digital identity. Its secure digital verification process maintains privacy and builds trust, moving away from outdated methods like plastic IDs and photo uploads that expose unnecessary personal data. By seamlessly integrating with existing KYC systems, Authologic enables companies to adopt secure e-ID solutions efficiently, paving the way for a transition to digital identification.
Inspectify raises $5.26m to drive innovation in property risk assessment
Inspectify, a Seattle-based property inspection and underwriting platform, has raised $5.26m in a funding round led by Munich Re Ventures.
This recent capital injection sees Munich Re Ventures become Inspectify’s largest external shareholder, with its managing director, Matt McElhattan, joining Inspectify’s board of directors, according to InsurTech Insights.
Additional support came from previous partner Hartford Steam Boiler, highlighting Inspectify’s strong industry partnerships.
Inspectify focuses on modernising the property inspection process for multiple sectors, including real estate, lending, property management, and insurance. The platform leverages automated intelligence and real-time data to streamline property assessments, aiming to ensure accurate, efficient, and high-quality inspections regardless of inspector variability. By partnering with a vast network of inspectors and offering a cutting-edge digital platform, Inspectify aims to tackle the rising challenges in property risk assessment.
The newly raised funds will further develop Inspectify’s proprietary software, expanding its offerings and reaching new client bases through Hartford Steam Boiler. One of its latest features, an Inspection Warranty, is particularly notable as it represents the first embedded warranty service in property inspections, providing homeowners with additional security and assurance regarding property assessments.
Propel leads $4.3m investment in Akua, enhancing FinTech innovations in LatAm
Akua, a Latin American-based payment processing platform, has successfully secured a seed investment of $4.3m.
Propel led the funding round, with additional contributions from Plug and Play, HTwenty, RallyCap, Flourish Ventures, and ICventures. The investment round also included high-impact angel investors with prior roles at companies like Mastercard, dLocal, Jeeves, and Nubank.
Akua is setting a new standard in the region by developing the first “as-a-service” acquiring processor platform. This platform is cloud-native, highly secure, operates in real-time, and integrates AI to streamline operations for financial institutions and merchants across Latin America.
The funding will be used to launch Akua’s platform in Colombia next year, with plans for rapid expansion into Mexico, Peru, Chile, and Brazil. Initially, the platform will support card payment processing, directly connecting with major networks like Visa and Mastercard, before incorporating alternative payment methods.
In addition to the investment news, Akua has unveiled significant operational plans and technological innovations. With 90% of its 20-strong workforce comprising engineers from leading global tech firms, the company is well-poised to tackle the region’s outdated payment systems that contribute to high fraud rates and inefficiencies.
Small business financial advisory platform Uprise raises $3.3m in seed round
Uprise, a San Francisco-based financial advisory platform, has secured $3.3m in its seed funding round.
The investment round was led by Blank Ventures. Other participants in the round included Graham & Walker, Hustle Fund and Dash Fund, according to a report from TechCrunch.
Several notable angel investors from the FinTech world also joined, such as Dan Macklin, co-founder of SoFi, and Eddie Kim, co-founder of Gusto.
Uprise provides financial advice by embedding itself into financial products already used by small businesses, such as HR tech platform Rippling and SMB tax startup Carry.
Using a blend of AI algorithms and human financial advisors, Uprise offers tailored recommendations, ensuring that businesses receive the most accurate and relevant advice for their specific needs. For example, Uprise might suggest the best retirement benefits based on a business’s size and location.
The funding will be used to fully launch Uprise’s platform and expand partnerships.
Agentech raises $3m to revolutionise insurance claims with AI-driven solutions
Agentech, a leading AI-powered workforce solution provider for insurance claims, has successfully raised $3m in seed funding within 30 days.
The funding will fuel the company’s expansion into new insurance claims workflows, including Property & Casualty (P&C), Workers’ Compensation, and Travel claims, according to InsurTech Insights.
The $3m seed round highlights investor confidence in Agentech’s potential to disrupt the insurance industry. The company was co-founded by InsurTech veterans Robin Roberson and Alex Pezold, both of whom have a track record of successful tech exits worth a combined $182m.
Agentech focuses on transforming the insurance adjudication process through its Agentic AI platform, which automates traditionally manual tasks in claims management.
The platform utilises multimodal Large Language Model (LLM) capabilities to increase insurers’ output without additional labour, streamlining processes such as document review and compliance checks.
With the new funding, Agentech intends to expand its AI-driven technology into adjacent claims processes like First Notice of Loss (FNOL), reserving, and file review.
The company aims to drive innovation across the broader insurance landscape by applying its solutions to more workflows.
Agentech’s platform currently automates up to 50% of manual tasks for desk adjusters, resulting in faster claims processing, improved customer satisfaction, and increased accuracy. The company integrates seamlessly with existing claims management systems, enhancing overall efficiency without disrupting operations.
Monark Markets secures $2.2m in seed funding to revolutionise private market access
Monark Markets, which specialises in integrating private market investments and trading solutions into traditional brokerage and wealth platforms, has raised $2.2m.
The seed round was led by Garuda Ventures, with contributions from K50 Ventures, Grit Capital Partners, Niche Capital, and notable angel investors including Nik Talreja, the CEO of Sydecar, and Shriram Bhashyam, the COO of Sydecar. This investment brings Monark’s total funding to $3.6m, with previous contributions from Forum Ventures and Night Capital.
Monark’s business model is uniquely positioned at the intersection of technology and financial services, offering a bridge for mass-affluent investors to access alternative investments through traditional financial platforms. The company leverages a robust API stack, enabling direct-to-consumer investment platforms that already serve a large user base with public market access, to expand into private securities.
Protostars secures €300k ($324m) for cutting-edge cybersecurity LLM solutions
Protostars, a burgeoning innovator in the field of AI-driven cyber security, has successfully raised €300k.
This funding round includes significant contributions from Enterprise Ireland and Growing Capital, marking a pivotal milestone in the company’s development.
With this new funding, Protostars is set to enhance its suite of security solutions tailored to assist companies in navigating the complexities of the newly adopted EU Cyber Resilience Act (CRA). The CRA, which mandates a legal framework for digital product security, applies to all connected digital products and is set to come into force 20 days from its adoption.
The capital will be utilized to expand Protostars’ security-LLM technologies. These include detailed security audit reporting and secure code analysis, which are critical in helping businesses meet stringent compliance requirements under the CRA.
Protostars is committed to pioneering innovative security solutions that streamline compliance for both proprietary and third-party software. Their offerings are designed to ensure seamless adaptation to various regulatory frameworks such as NIS2, NIST, DORA, FIDA, and the CRA.
WestView Capital Partners backs CardFlight with significant minority investment
CardFlight, a leading SaaS payment technology company, recently announced a significant minority investment from WestView Capital Partners, a Boston-based growth equity firm.
The new funds will bolster CardFlight’s ability to further develop its suite of payment solutions, enhance its software offerings, and expand its reach among small businesses and merchant partners throughout the United States. With this strategic backing, CardFlight is set to accelerate its mission of simplifying payment processes for small businesses.
Established in 2013, CardFlight has been dedicated to demystifying the complex payment landscape for small business owners and the merchant acquiring channels that support them. The company boasts a robust software platform that simplifies the onboarding process for merchants and offers a rich set of features that are easy to use and reliable. This platform has facilitated CardFlight’s growth, aided by a reseller network of over 100 partners, including top merchant acquirers, that distribute SwipeSimple, CardFlight’s flagship product, to thousands of new merchants each month.
CardFlight’s SwipeSimple solution is currently utilized by more than 125,000 small business owners across the United States, processing over $12bn in annual payment volume. This solution not only facilitates payment acceptance through various methods but also includes comprehensive business management functions that help small businesses optimize operations and grow effectively within their local communities.
Dutch InsurTech Onesurance raises seed round led by Curiosity VC
Tookitaki’s anti-financial crime technology garners investment for growth in key Asian markets
Interface.ai raises funds to revolutionize banking with Agentic AI solutions
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
