Fintech
The Next Fintech to Go Public Might Not Be the One You Expected
Welcome to TechCrunchFintechThis week, we’re looking at Human Interest’s path to an IPO, fintech’s newest unicorn, a slew of new fundraising rounds, and more.
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The big story
SMB-focused 401k provider Human interest last week announced a $267 million funding roundfurther paving the way for an IPO. No timeline was given. CFO Tripp Faix told TechCrunch, “We’re looking to go public when the time is right.” It’s been crazy to watch this company grow. I first talked about Human Interest when raised $40 million in Series C in March 2020. He still collected some turns before BlackRock acquired a minority stake in the company in January 2023. Impressively, the company claims to be “approaching cash flow breakeven and has enough cash on the balance sheet to fund continued 70%+ year-over-year growth without additional capital.” Fun fact: The founder of Layoffs.fyi Roger Lee He co-founded Human Interest in 2015 and remains a member of its board of directors.
Analysis of the week
Fintech unicorns are becoming as rare as four-leaf clovers, according to CB Insights’ Q2 State of Fintech Reportthe number of new fintech unicorns born in Q2 was just two. For comparison, 49 new fintech unicorns were born in Q2 2021. Unselfisha custodian for registered investment advisors (RIAs), in May raised $169 million in a Series E funding round led by investment firm ICONIQ Growth that gave it a valuation of more than 1.5 billion dollarsAnd in April, the Paris-based startup Pigment raised a $145 million funding roundvaluing it at $1 billion just five years after its inception. The business software company offers a business planning platform for large companies to view their past financial performance and forecast upcoming quarters. Will we see more unicorns in 2024? Scroll down to read about another.
Dollars and cents
Digital Accounting API Launch Fragment raised $9 million from fintech infrastructure executives at Stripe, BoxGroup, Avid Ventures, Zach Perret (Plaid) and Jack Altman (Lattice).
It costsa startup that describes itself as “a financial services platform for the future of transportation,” has raised $40 million in Series B funding led by ICONIQ Growth — just four months after the announcement 25 million dollars risk round.
Astora free personal finance platform for women that brings together community and investing in an accessible way, raised $1.4 million.
Supported by Sam Altman Slopea Silicon Valley-based B2B payments platform that offers order-to-cash workflow automation for businesses, has secured JP Morgan Payments as a leader in a new round of strategic equity and bond financing of $65 million.
Materaa Brazilian company that provides instant payments, QR code payments and core banking software to financial institutions, has received a $100 million investment by Warburg Pincus.
What else are we writing?
Indian Fintech The Paytm the fights don’t seem to end. The company on Friday reported that its revenue fell 36% and its losses more than doubled in the first quarter, as it continues to grapple with a regulatory crackdown that has significantly curtailed the business of its payments banking subsidiary.
Fast-Growing Payroll Processing Service Provider Share made another acquisition, its third this year. Deel has acquired Hofya London-based company that provides and helps manage office equipment for remote hiring. Financial terms were not disclosed, but a source familiar with the matter told TechCrunch the deal was worth more than $100 million.
Fintech for remittances in Africa Weighs is in the final stages of acquiring the necessary licenses for launch in the United Statesrecently launched in 27 European countries after finding success in Canada.
Titles of great interest
Tiger Global in talks to lead $500 million Revolut equity deal
Inside the New FinTech Unicorn: A Credit Card Backed by Your Home
Capstack Technologies acquires Edge Tradeworks
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