FinTech funding topped $1bn on a slow week for the sector, headlined by open banking giant Plaid’s $575m secondary share sale.
The deal saw FinTech funding reach $1.23bn with cybersecurity firm ReliaQuest followed closely, securing a $500m injection that pushed its valuation to $3.4bn, while London-based remittance provider Zepz landed €152m in fresh credit facilities.
Other notable deals included Mendel, a Mexico-based WealthTech, which raised $35m, and Flagright, a German RegTech firm, which secured $4.3m. InsurTech also saw movement, with FurtherAI bringing in $5m.
In total, 11 deals were secured across the industry. WealthTech and InsurTech led the charge with three deals each, followed by RegTech (two deals) and one apiece for CyberTech, FinTech, and ESG FinTech.
Internationally, the US maintained its dominance with four deals, while the UK once again played runner-up with two. Germany, Spain, Italy, Vietnam, and Mexico each contributed a single funding round, highlighting the sector’s continued global reach.
Here are this week’s FinTech funding rounds
Plaid secures $575m as valuation falls to $6.1bn in secondary share sale
Open banking giant Plaid has secured $575m in a secondary share sale that has seen its valuation plummet from $13.4bn in 2021 to $6.1bn.
The funding round was led by Ribbit Capital, NEA, Fidelity Management & Research Co, BlackRock, and Franklin Templeton, according to Finextra.
The sale enables some Plaid employees to cash out restricted stock set to expire at the end of 2025.
Founded in 2012, Plaid connects consumers’ financial accounts from over 12,000 providers to more than 8,000 FinTech firms. The company plays a crucial role in the open banking ecosystem, facilitating seamless integrations for a variety of financial applications.
The fresh funding comes at a time when Plaid continues to experience substantial growth, despite the valuation drop. CEO Zach Perret stated that the firm’s revenue and profitability have improved significantly but acknowledged that the decline in valuation is reflective of broader market conditions.
ReliaQuest’s valuation hits $3.4bn following $500m funding injection
ReliaQuest has revealed a substantial funding boost of more than $500m led by EQT, KKR, and FTV Capital, with further backing from existing investors Ten Eleven Ventures and Finback Investment Partners.
This latest financial endorsement by such investors elevates ReliaQuest’s valuation to an impressive $3.4bn.
ReliaQuest stands out in the cybersecurity sector by delivering a unique AI-driven approach to security operations. The company’s flagship technology platform, GreyMatter, integrates seamlessly with over 200 different cybersecurity tools. This integration enables security teams to enhance their operational visibility and leverage AI-driven automation to effectively detect, investigate, and respond to cyber threats rapidly across their existing tech stacks, streamlining operations and maximizing the value from their investments.
The newly acquired funds are earmarked to propel ReliaQuest’s ongoing growth and innovation in AI-driven cybersecurity automation. Moreover, the investment will aid the company’s strategic international expansion, as it aims to strengthen its global presence.
Zepz lands €152m boost to fortify global remittances
London-based Zepz, the parent company behind renowned remittance services WorldRemit and Sendwave, has successfully obtained €152 million in combined revolving and term credit facilities.
According to EU Startups, this strategic financial boost is set to strengthen their market position significantly.
The financing, comprising a €101.7 million revolving credit facility and a €50.8 million term facility, was spearheaded by HSBC Innovation Banking with HSBC Private Credit acting as the sole underwriter. This arrangement supersedes a prior €74 million credit facility, marking a significant escalation in support and confidence from HSBC Innovation Banking UK, with whom Zepz has enjoyed a decade-long fruitful relationship.
Latin America’s Mendel secures $35m Series B to expand AI-driven spend management
Mendel, a Latin American enterprise spend management platform, has secured $35m in a Series B funding round led by Base10 Partners.
The round also saw participation from PayPal Ventures, as well as existing investors Infinity Ventures, Industry Ventures, Hi.vc, and Endeavor Catalyst.
The Mexico-based company provides a comprehensive platform for large enterprises to manage expenses, payments, and corporate travel. Unlike competitors that rely on interchange revenue or lending-based models, Mendel differentiates itself with a software-first approach, allowing it to generate recurring SaaS fees.
With the fresh funding, Mendel plans to accelerate the development of its AI-driven capabilities, particularly in its corporate travel module, Mendel Viajes. The company will also expand geographically, with plans to enter Chile, Colombia, and Peru in 2025, followed by Brazil in 2026. Additionally, the capital will be used to scale its team, hiring top talent to drive product innovation and AI research.
WeeFin secures €25m to lead sustainable FinTech expansion in Europe
WeeFin, the innovative FinTech company, announced today that it has secured a new funding round of €25 million.
This financial injection comes 15 months after WeeFin’s Series A and is led by BlackFin Capital Partners, a prominent European FinTech fund. The round also saw participation from existing investors IRIS, Asterion Ventures, and Ring Capital.
WeeFin, founded in 2021 by former R&D product manager at BNP Paribas, Grégoire Hug, along with Marion Aubert and Guillaume Klech, has quickly become a pivotal player in the FinTech sector. The company provides a comprehensive SaaS platform that centralises data essential for deploying and managing sophisticated sustainability strategies. These include aspects ranging from ESG to impact and climate initiatives, highlighting the firm’s commitment to advancing sustainable finance.
Persefoni bags $23m funding to enhance carbon accounting software
Persefoni, a trailblazer in sustainability management software, announced today that it has secured $23 million in Series C funding.
The company, founded in 2020, specializes in AI-driven tools to help businesses manage their carbon footprint and sustainability efforts, claims ESG Today.
The latest investment round includes contributions from a notable European luxury fashion house, TPG Rise, Rice Investment Group, Clearvision Ventures, NGP Energy Technology Partners, and Prelude Ventures, along with Persefoni’s CEO and Co-Founder, Kentaro Kawamori.
Persefoni’s platform offers comprehensive solutions for streamlined carbon footprint calculation, decarbonization strategy development, and audit-ready disclosures aligned with global standards like SB 253, CSRD, ISSB, and CDP. These tools are vital for companies aiming to meet stringent environmental compliance requirements.
AI-driven InsurTech FurtherAI secures $5m to expand into UK market
San Francisco-based InsurTech startup FurtherAI, which develops AI-powered assistants for the commercial insurance sector, has raised $5m in a funding round led by Nexus Venture Partners.
Other investors include Pioneer AI Fund, South Park Commons, Y Combinator, ConvergeVC, and Xceedence, according to InsurTech Insights.
Founded in 2023, FurtherAI leverages artificial intelligence to automate complex document processing and integrate disconnected systems, improving underwriting, compliance, and claims processing at scale.
The company’s AI-driven solutions aim to optimise traditionally manual and repetitive workflows, helping insurers operate more efficiently.
The fresh capital will support FurtherAI’s expansion efforts, including its planned entry into the UK market. With this move, the company aims to bring its AI-powered solutions to a broader range of insurers seeking to enhance efficiency and accuracy in underwriting and claims handling.
Axyon AI gains €4.3m to boost AI innovation in investment management
Axyon AI, a prominent player in the FinTech sector, has successfully secured a €4.3 million investment round.
The funding was led by CDP Venture Capital, with notable contributions from US-based venture capital firms Green Sands Equity and Montage Ventures, the Italian holding firm Investment Opportunity 1, and SIMEST, acting on behalf of the Fund F.394 managed in agreement with the Italian Ministry of Foreign Affairs and International Cooperation (MAECI).
Established in 2016, Axyon AI specialises in leveraging predictive AI technology to enhance investment management practices. The company’s innovative solutions focus on improving the accuracy and efficiency of investment strategies through advanced data analytics and AI explainability.
The new funding will be instrumental in broadening Axyon AI’s reach in the financial markets and further developing cutting-edge solutions. This capital boost aims to enhance the company’s commercial presence and improve the coverage of its AI-powered solutions, positioning Axyon AI at the forefront of AI explainability in the investment management industry.
Flagright secures $4.3m to enhance AI-native AML solutions in FinTech
Flagright, an AI-native AML compliance platform, has announced the successful closure of a $4.3m seed funding round.
This financial boost aims to propel the development of Flagright’s solutions and support its international expansion. The funding round was spearheaded by Frontline Ventures and included investments from a group of distinguished angel investors.
The company specializes in utilizing AI to tackle financial crimes, a critical need in today’s tech-driven financial landscape. Historically, financial institutions have faced challenges such as the notorious $25m fraud incident in Hong Kong, involving deepfake technology. Such incidents underscore the growing sophistication of financial fraud, which increasingly involves AI technologies. Reports indicate that in 2023, deepfake usage in FinTech surged by 700%.
Foliume raises $1m seed round to enhance AI-driven insurance distribution
Foliume, which specialises in automating insurance processes, has secured a $1m seed funding round led by Belgium-based venture fund Pitchdrive and Wayra, the investment arm of Telefónica.
The round also saw participation from key figures in insurance distribution and technology, according to InsurTech Insights.
The fresh capital will be used to enhance product development and support the European expansion of Foliume’s AI assistants.
These tools are designed to improve efficiency for brokers, agents, and bancassurance teams by streamlining processes such as quotes, policy renewals, and customer service.
Icen Risk gains Zurich backing to accelerate growth in M&A insurance market
London-based Icen Risk, a specialist in M&A insurance, has received a significant minority investment from Zurich, a leading global insurer.
The deal strengthens Zurich’s foothold in the rapidly expanding M&A insurance sector while enabling Icen Risk to scale its operations in North America and key European markets, including Germany, according to InsurTech Insights.
Founded in 2018, Icen Risk has emerged as a major player in private company M&A insurance.
The company, which holds Coverholder status with Lloyd’s of London, reported £70m in gross written premiums (GWP) and operates with a 25-member team across Spain, Italy, and Austria.
