Fintech

Morgan Stanley Expansion Capital acquires stake in global payments fintech Sokin

Published

6 months ago

24 July, 2024

Morgan Stanley Expansion Capital acquires stake in global payments fintech Sokin

Morgan Stanley Expansion Capital has acquired a stake in UK-based payments fintech Sokin, marking a significant milestone for the company. This strategic investment is expected to accelerate Sokin’s product growth plans and global expansion. Additional investors include Gary Marino, former CCO at PayPal who will join the Board, Mark Britto, former CPO at PayPal, and Aurum Partners, the investment fund affiliated with the San Francisco 49ers owners.

Sokin, founded in 2019, enables global businesses to transfer, hold, and exchange over 100 currencies through a comprehensive platform. The company currently facilitates more than $2.5 billion in transactional volume annually, with rapid growth anticipated. This investment is expected to provide Sokin with significant capital and resources to further its innovative approach to international payments.

Morgan Stanley Expansion Capital ha acquisito una partecipazione nella fintech britannica dei pagamenti Sokin, rappresentando un traguardo significativo per l’azienda. Questo investimento strategico è destinato ad accelerare i piani di crescita dei prodotti e l’espansione globale di Sokin. Tra gli investitori aggiuntivi ci sono Gary Marino, ex CCO di PayPal che entrerà nel consiglio, Mark Britto, ex CPO di PayPal, e Aurum Partners, il fondo di investimento affiliato ai proprietari dei San Francisco 49ers.

Sokin, fondata nel 2019, consente alle imprese globali di trasferire, detenere e scambiare oltre 100 valute tramite una piattaforma completa. L’azienda gestisce attualmente oltre $2,5 miliardi di volume transazionale all’anno, con una crescita rapida prevista. Questo investimento dovrebbe fornire a Sokin un capitale significativo e risorse per promuovere il suo approccio innovativo ai pagamenti internazionali.

Morgan Stanley Expansion Capital ha adquirido una participación en la fintech de pagos del Reino Unido Sokin, lo que marca un hito significativo para la empresa. Se espera que esta inversión estratégica acelere los planes de crecimiento de productos y la expansión global de Sokin. Inversores adicionales incluyen a Gary Marino, ex CCO de PayPal, quien se unirá a la Junta, Mark Britto, ex CPO de PayPal, y Aurum Partners, el fondo de inversión afiliado a los propietarios de los San Francisco 49ers.

Sokin, fundada en 2019, permite a las empresas globales transferir, mantener e intercambiar más de 100 divisas a través de una plataforma integral. Actualmente, la empresa facilita más de $2.5 mil millones en volumen transaccional anualmente, con un crecimiento rápido anticipado. Se espera que esta inversión proporcione a Sokin un capital significativo y recursos para avanzar en su enfoque innovador hacia los pagos internacionales.

모건 스탠리 확장 자본이 영국 기반의 결제 핀테크 Sokin에 지분을 인수하여 회사에 중요한 이정표를 세웠습니다. 이 전략적 투자는 Sokin의 제품 성장 계획 및 글로벌 확장을 가속화할 것으로 기대됩니다. 추가 투자자로는 PayPal의 전 CCO인 Gary Marino, 이사회에 합류할 Mark Britto, PayPal의 전 CPO, 그리고 샌프란시스코 49ers 소유주와 관련된 투자 펀드 Aurum Partners가 있습니다.

2019년에 설립된 Sokin은 글로벌 비즈니스가 100개 이상의 통화를 통해 송금, 보유 및 환전할 수 있도록 종합 플랫폼을 제공합니다. 현재 이 회사는 연간 25억 달러 이상의 거래량을 처리하고 있으며, 빠른 성장이 예상됩니다. 이번 투자는 Sokin에 국제 결제에 대한 혁신적인 접근 방식을 발전시키기 위한 상당한 자본과 자원을 제공할 것으로 기대됩니다.

Morgan Stanley Expansion Capital a acquis une part dans la fintech britannique de paiements Sokin, marquant une étape importante pour l’entreprise. Cet investissement stratégique devrait accélérer les plans de croissance des produits et l’expansion mondiale de Sokin. D’autres investisseurs incluent Gary Marino, ancien CCO de PayPal qui rejoindra le Conseil, Mark Britto, ancien CPO de PayPal, et Aurum Partners, le fonds d’investissement affilié aux propriétaires des San Francisco 49ers.

Sokin, fondée en 2019, permet aux entreprises mondiales de transférer, détenir et échanger plus de 100 devises via une plateforme complète. L’entreprise facilite actuellement plus de 2,5 milliards de dollars de volume transactionnel par an, avec une croissance rapide attendue. Cet investissement est censé fournir à Sokin un capital et des ressources significatifs pour poursuivre son approche innovante des paiements internationaux.

Morgan Stanley Expansion Capital hat eine Beteiligung am britischen Zahlungsfintech Sokin erworben, was einen bedeutenden Meilenstein für das Unternehmen darstellt. Diese strategische Investition wird voraussichtlich die Produktwachstumspläne und die globale Expansion von Sokin beschleunigen. Weitere Investoren sind Gary Marino, ehemaliger CCO bei PayPal, der dem Vorstand beitreten wird, Mark Britto, ehemaliger CPO bei PayPal, und Aurum Partners, der Investmentfonds der Eigentümer der San Francisco 49ers.

Sokin, gegründet im Jahr 2019, ermöglicht es globalen Unternehmen, über 100 Währungen über eine umfassende Plattform zu transferieren, zu halten und umzutauschen. Das Unternehmen verarbeitet derzeit jährlich mehr als 2,5 Milliarden Dollar an Transaktionsvolumen und erwartet ein schnelles Wachstum. Diese Investition wird Sokin voraussichtlich erhebliches Kapital und Ressourcen zur Verfügung stellen, um ihren innovativen Ansatz für internationale Zahlungen weiterzuverfolgen.

Positive

Morgan Stanley Expansion Capital’s investment is expected to accelerate Sokin’s product growth and global expansion

Sokin facilitates over $2.5 billion in annual transactional volume, with rapid growth anticipated

High-profile investors including former PayPal executives and Aurum Partners joined the investment round

Sokin’s platform supports businesses across various verticals, including Premier League football clubs

The company will continue to operate independently, with the current management team remaining in place

Sokin’s acquisition of investment funds managed by Morgan Stanley Expansion Capital signals a significant milestone for the company. This strategic investment positions Sokin for accelerated growth and global expansion. The capital infusion will enable Sokin to enhance its product offering and broaden its market reach. Given Morgan Stanley’s track record with high-performing companies, this partnership is likely to provide Sokin with important financial and strategic support. The involvement of prominent investors from PayPal and Aurum Partners further validates Sokin’s business model and its potential for future success. Retail investors should view this as a positive development, reflecting Sokin’s strong market position and growth prospects.

The entry of Morgan Stanley Expansion Capital into Sokin’s investor lineup underscores the fintech’s solid market standing and growth potential. The investment is set to fuel Sokin’s expansion plans, potentially increasing its market share in the global payments space. Sokin’s ability to handle over $2.5 billion in annual transactional volume indicates a robust operational framework. The fintech industry’s competitive landscape means that this investment could accelerate product innovation and market penetration for Sokin. Retail investors should monitor how Sokin leverages this capital to introduce new products and expand geographically, as these factors will be critical for its long-term success.

Sokin’s platform, which facilitates transactions in over 100 currencies, positions it well in the increasingly globalized financial ecosystem. The support from investors with deep expertise in payments technology, like Gary Marino and Mark Britto from PayPal, is a strategic advantage. Their experience will likely drive further enhancements in Sokin’s technology stack, improving its operational efficiency and service offerings. This technological edge is important for maintaining a competitive position in the fintech industry. Retail investors should consider the long-term potential of Sokin’s technology developments and strategic partnerships in driving its market leadership.

07/24/2024 – 08:00 AM

Strategic investment is expected to accelerate Sokin’s product growth plans and further global expansion
Additional investors include Gary Marino, former CCO at PayPal who will join the Board, Mark Britto, former CPO at PayPal, and Aurum Partners, the investment fund affiliated with the owners of the San Francisco 49ers and other strategic LPs
Existing investors include Rio Ferdinand, former England and Manchester United defender

NEW YORK–(BUSINESS WIRE)–
Investment funds managed by Morgan Stanley Expansion Capital have acquired a stake in UK headquartered payments business Sokin, marking an exciting new chapter for the fast-expanding fintech firm. The acquisition will provide significant capital and accelerate its product growth plans and further global expansion.

The transaction is constructed to provide investment to the company to support the speed and breadth of its growth. Sokin will continue operating as an independent unit and brand, and the current management team will remain to lead its expansion, with CEO Vroon Modgill maintaining a material shareholding.

Whilst Morgan Stanley Expansion Capital has led the transaction, it also includes investment from prominent US investors including Gary Marino, former Chief Commercial Officer at PayPal who will join the Board, Mark Britto, former Chief Product Officer at PayPal, and Aurum Partners, the investment fund affiliated with the owners of the San Francisco 49ers and other strategic LPs. Existing investors in Sokin include former England and Manchester United defender Rio Ferdinand.

Sokin was founded in 2019 with a simple vision to remove the borders, barriers, and burdens associated with international payments. Today it enables global businesses to transfer, hold and exchange over 100 currencies with its multi-currency IBAN and local currency accounts – all through one comprehensive platform.

Sokin enables more than $2.5bn in transactional volume per year, with further rapid growth anticipated. It supports businesses across a wide range of verticals, from freight and logistics – to Premier League football clubs, enabling them to manage global payments and financials with speed, efficiency, and transparency.

Vroon Modgill, CEO & Founder of Sokin, said: “This investment represents an exciting new chapter for Sokin – one filled with immense opportunities for growth and innovation. By joining forces with the Morgan Stanley Expansion Capital team, we gain access to unparalleled resources and expertise which we believe will enable us to accelerate our growth trajectory and better serve our customers.”

Lincoln Isetta, Managing Director at Morgan Stanley Expansion Capital, said: “Sokin demonstrated outlier growth and capital efficiency that was powered by a great product and a high achieving team. We are pleased to partner with Vroon and the Sokin team to leverage our experience working with high-performing companies raising their first significant institutional capital. We believe Sokin has built a modern, comprehensive technology platform that is well suited to help enterprises simplify payments across geographies. Many of the world’s largest and most sophisticated companies and sports clubs already trust Sokin to execute strategic payments and we believe Sokin is at the forefront of technology leadership in those markets.”

Gary Marino, tech investor and former Chief Commercial Officer at PayPal, said: “Sokin has developed an impressive platform powered by tactical licensing and partnerships ripe for further product and market expansion. We’re excited about how Sokin’s products will shape a new future for global payments.”

Brano Perkovich, Founding Partner at Aurum Partners, said: “Sokin’s innovative approach and talented team have laid a strong foundation for success. We’re thrilled to join forces with Vroon and the Sokin team to revolutionize the global payments landscape.”

Rio Ferdinand, said: “This is a huge moment for the team at Sokin and a testament to the product and business they’ve built up. I’m excited to see the business go from strength to strength.”

About Sokin

Sokin was founded in 2019 with a simple vision to remove borders, barriers, and burdens associated with international payments. Today it enables global businesses to transfer, hold and exchange over 100 currencies with its multi-currency IBAN and local currency accounts – all through one comprehensive platform. It supports businesses across a wide range of verticals, from freight and logistics through to Premier League football clubs, enabling them to manage global payments and financials with speed, efficiency, and transparency. Sokin’s dedication to improving financial efficiencies for global businesses has already led to more than $2.5bn in transactional payment volume per year.

About Morgan Stanley Expansion Capital

Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. Morgan Stanley Expansion Capital targets growth equity and credit investments within consumer, technology, healthcare, and other high-growth sectors. For over three decades, Morgan Stanley Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 200 companies, leveraging the global brand and network of Morgan Stanley.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722421079/en/

Media Relations Contact:

Alyson Barnes

(212) 762-0514

mediainquiries@morganstanley.com

Source: Morgan Stanley Expansion Capital

FAQ

What is the significance of Morgan Stanley Expansion Capital’s investment in Sokin (MS)?

Morgan Stanley Expansion Capital’s investment in Sokin is significant as it provides substantial capital to accelerate Sokin’s product growth plans and further global expansion. This strategic investment marks an important milestone for the fintech company and is expected to enhance its position in the global payments market.

How much transactional volume does Sokin (MS) currently process annually?

Sokin currently enables more than $2.5 billion in transactional volume per year, with expectations of rapid growth in the future.

Who are some of the notable investors in Sokin (MS) following this investment round?

Notable investors in Sokin include Gary Marino (former CCO at PayPal), Mark Britto (former CPO at PayPal), Aurum Partners (investment fund affiliated with the San Francisco 49ers owners), and Rio Ferdinand (former England and Manchester United defender).

What services does Sokin (MS) offer to global businesses?

Sokin offers global businesses the ability to transfer, hold, and exchange over 100 currencies through its platform. It provides multi-currency IBAN and local currency accounts, enabling businesses to manage global payments and financials with speed, efficiency, and transparency.

Source

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Fintech

US Agencies Request Information on Bank-Fintech Dealings

Published

6 months ago

30 July, 2024

FinCrypt Staff

Federal banking regulators have issued a statement reminding banks of the potential risks associated with third-party arrangements to provide bank deposit products and services.

The agencies support responsible innovation and banks that engage in these arrangements in a safe and fair manner and in compliance with applicable law. While these arrangements may offer benefits, supervisory experience has identified a number of safety and soundness, compliance, and consumer concerns with the management of these arrangements. The statement details potential risks and provides examples of effective risk management practices for these arrangements. Additionally, the statement reminds banks of existing legal requirements, guidance, and related resources and provides insights that the agencies have gained through their oversight. The statement does not establish new supervisory expectations.

Separately, the agencies requested additional information on a broad range of arrangements between banks and fintechs, including for deposit, payment, and lending products and services. The agencies are seeking input on the nature and implications of arrangements between banks and fintechs and effective risk management practices.

The agencies are considering whether to take additional steps to ensure that banks effectively manage the risks associated with these different types of arrangements.

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Fintech

What changes in financial regulation have impacted the development of financial technology?

Published

6 months ago

30 July, 2024

FinCrypt Staff

Exploring the complex landscape of global financial regulation, we gather insights from leading fintech leaders, including CEOs and finance experts. From the game-changing impact of PSD2 to the significant role of GDPR in data security, explore the four key regulatory changes that have reshaped fintech development, answering the question: “What changes in financial regulation have impacted fintech development?”

PSD2 revolutionizes access to financial technology
GDPR Improves Fintech Data Privacy
Regulatory Sandboxes Drive Fintech Innovation
GDPR Impacts Fintech Data Security

PSD2 revolutionizes access to financial technology

When it comes to regulatory impact on fintech development, nothing comes close to PSD2. This EU regulation has created a new level playing field for market players of all sizes, from fintech startups to established banks. It has had a ripple effect on other markets around the world, inspiring similar regulatory frameworks and driving global innovation in fintech.

The Payment Services Directive (PSD2), the EU law in force since 2018, has revolutionized the fintech industry by requiring banks to provide third-party payment providers (TPPs) with access to payment services and customer account information via open APIs. This has democratized access to financial data, fostering the development of personalized financial instruments and seamless payment solutions. Advanced security measures such as Strong Customer Authentication (SCA) have increased consumer trust, pushing both fintech companies and traditional banks to innovate and collaborate more effectively, resulting in a dynamic and consumer-friendly financial ecosystem.

The impact of PSD2 has extended beyond the EU, inspiring similar regulations around the world. Countries such as the UK, Australia and Canada have launched their own open banking initiatives, spurred by the benefits seen in the EU. PSD2 has highlighted the benefits of open banking, also prompting US financial institutions and fintech companies to explore similar initiatives voluntarily.

This has led to a global wave of fintech innovation, with financial institutions and fintech companies offering more integrated, personalized and secure services. The EU’s leadership in open banking through PSD2 has set a global standard, promoting regulatory harmonization and fostering an interconnected and innovative global financial ecosystem.

Looking ahead, the EU’s PSD3 proposals and Financial Data Access (FIDA) regulations promise to further advance open banking. PSD3 aims to refine and build on PSD2, with a focus on improving transaction security, fraud prevention, and integration between banks and TPPs. FIDA will expand data sharing beyond payment accounts to include areas such as insurance and investments, paving the way for more comprehensive financial products and services.

These developments are set to further enhance connectivity, efficiency and innovation in financial services, cementing open banking as a key component of the global financial infrastructure.

Sebastian Malczyk

General Manager, Technology and Product Consultant Fintech, Insurtech, Miquido

GDPR Improves Fintech Data Privacy

Privacy and data protection have been taken to another level by the General Data Protection Regulation (GDPR), forcing fintech companies to tighten their data management. In compliance with the GDPR, organizations must ensure that personal data is processed fairly, transparently, and securely.

This has led to increased innovation in fintech towards technologies such as encryption and anonymization for data protection. GDPR was described as a top priority in the data protection strategies of 92% of US-based companies surveyed by PwC.

Arid Islam

Financial Expert, Sterlinx Global

Regulatory Sandboxes Drive Fintech Innovation

Since the UK’s Financial Conduct Authority (FCA) pioneered sandbox regulatory frameworks in 2016 to enable fintech startups to explore new products and services, similar frameworks have been introduced in other countries.

This has reduced the “crippling effect on innovation” caused by a “one size fits all” regulatory approach, which would also require machines to be built to complete regulatory compliance before any testing. Successful applications within sandboxes give regulators the confidence to move forward and address gaps in laws, regulations, or supervisory approaches. This has led to widespread adoption of new technologies and business models and helped channel private sector dynamism, while keeping consumers protected and imposing appropriate regulatory requirements.

George Blandford

Co-founder, UK Linkology

GDPR Impacts Fintech Data Security

A big change in financial regulations that has had a real impact on fintech is the 2018 EU General Data Protection Regulation (GDPR). I have seen how GDPR has pushed us to focus more on user privacy and data security.

GDPR means we have to handle personal data much more carefully. At Leverage, we have had to step up our game to meet these new rules. We have improved our data encryption and started doing regular security audits. It was a little tricky at first, but it has made our systems much more secure.

For example, we’ve added features that give users more control over their data, like simple consent tools and clear privacy notices. These changes have helped us comply with GDPR and made our customers feel more confident in how we handle their information.

I believe that GDPR has made fintech companies, including us at Leverage, more transparent and secure. It has helped build trust with our users, showing them that we take data protection seriously.

Dr. Rhett Stubbendeck

CEO & Co-Founder, Leverage Planning

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Fintech

M2P Fintech About to Raise $80M

Published

6 months ago

30 July, 2024

FinCrypt Staff

Application Programming Interface (API) Infrastructure Platform M2P Financial Technology has reached the final round to raise $80 million, at a valuation of $900 million.

Specifically, M2P Fintech, formerly known as Yap, is closing a new funding round involving new and existing investors, according to entrackr.com. The India-based company, which last raised funding two and a half years ago, previously secured $56 million in a round led by Insight Partners, earning a post-money valuation of $650 million.

A source indicated that M2P Fintech is ready to raise $80 million in this new funding round, led by a new investor. Existing backers, including Insight Partners, are also expected to participate. The new funding is expected to go toward enhancing the company’s technology infrastructure and driving growth in domestic and international markets.

What does M2P Fintech do?

M2P Fintech’s API platform enables businesses to provide branded financial services through partnerships with fintech companies while maintaining regulatory compliance. In addition to its operations in India, the company is active in Nepal, UAE, Australia, New Zealand, Philippines, Bahrain, Egypt, and many other countries.

Another source revealed that M2P Fintech’s valuation in this funding round is expected to be between USD 880 million and USD 900 million (post-money). The company has reportedly received a term sheet and the deal is expected to be publicly announced soon. The Tiger Global-backed company has acquired six companies to date, including Goals101, Syntizen, and BSG ITSOFT, to enhance its service offerings.

According to TheKredible, Beenext is the company’s largest shareholder with over 13% ownership, while the co-founders collectively own 34% of the company. Although M2P Fintech has yet to release its FY24 financials, it has reported a significant increase in operating revenue. However, this growth has also been accompanied by a substantial increase in losses.

Source

Fintech

Scottish financial technology firm Aveni secures £11m to expand AI offering

Published

6 months ago

30 July, 2024

FinCrypt Staff

Aveni, Investment Management, AI, NLP, UK

By Gloria Methri

Today

To come
Aveni Assistance
Aveni Detection

Artificial intelligence Financial Technology Aveni has announced one of the largest Series A investments in a Scottish company this year, amounting to £11 million. The investment is led by Puma Private Equity with participation from Par Equity, Lloyds Banking Group and Nationwide.

Aveni combines AI expertise with extensive financial services experience to create large language models (LLMs) and AI products designed specifically for the financial services industry. It is trusted by some of the UK’s leading financial services firms. It has seen significant business growth over the past two years through its conformity and productivity solutions, Aveni Detect and Aveni Assist.

This investment will enable Aveni to build on the success of its existing products, further consolidate its presence in the sector and introduce advanced technologies through FinLLM, a large-scale language model specifically for financial services.

FinLLM is being developed in partnership with new investors Lloyds Banking Group and Nationwide. It is a large, industry-aligned language model that aims to set the standard for transparent, responsible and ethical adoption of generative AI in UK financial services.

Following the investment, the team developing the FinLLM will be based at the Edinburgh Futures Institute, in a state-of-the-art facility.

Joseph Twigg, CEO of Aveniexplained, “The financial services industry doesn’t need AI models that can quote Shakespeare; it needs AI models that deliver transparency, trust, and most importantly, fairness. The way to achieve this is to develop small, highly tuned language models, trained on financial services data, and reviewed by financial services experts for specific financial services use cases. Generative AI is the most significant technological evolution of our generation, and we are in the early stages of adoption. This represents a significant opportunity for Aveni and our partners. The goal with FinLLM is to set a new standard for the controlled, responsible, and ethical adoption of generative AI, outperforming all other generic models in our select financial services use cases.”