Fintech
Unit and Loop lay off staff and Brex abandons the co-CEO model
Welcome to TechCrunch Fintech! This week, we’ll look at the layoffs at BaaS startup Unit and auto insurance company Loop, as well as Brex’s decision to abandon its co-CEO model, Apple eliminating its Pay Later feature, and more!
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The big story
Unit is the latest banking-as-a-service startup to lay off staff, with co-founders Itai Damti and Doron Somech noting in a blog post on June 17th that the company (last worth $1.2 billion) had laid off about 15% of its staff. (Syncteri cut the workforce in March and Treasury Prime it cut its workforce by half in February). The unit declined to share how many employees have been affected or how many remain.
In other BaaS news, the Federal Reserve has ordered Evolve Bank (partner of Synapse and Mercury) “to strengthen its risk management programs related to fintech partnerships and anti-money laundering laws”. Meanwhile, the CEO of troubled fintech Synapse reportedly raised 10 million dollars for a new robotics startup also in the meantime the questions remain on the whereabouts of $85 million in customer savings.
Analysis of the week
In an exclusive interview, Brex co-founders Henrique Dubugras and Pedro Franceschi told TechCrunch that the expense management company is abandoning its co-CEO model in an effort to move faster and be more attractive to investors as the startup prepares for an eventual IPO. “I think we’re at a level where we’re starting to see some cracks in the co-CEO model,” Dubugras said. “We thought this would allow for much faster and better decision making.” It looks like Brex is growing. The pair also said a secondary sale of shares is likely to occur before they go public. The company also told TechCrunch that it has launched a new checking account for businesses in partnership with Columna fintech started by Plaid co-founder William Hockey, as well as access to Brex corporate accounts upon incorporation via Stripe Atlas.
Dollars and cents
Founded by two Flexport accounting alumni Mary Antony and Kelsey Gootnick, automated financial reporting fintech InScope has raised a seed round of $4.3 million led by Lightspeed Venture Partners. Talking about Lightspeed, the company is also a leader a $35 million round For Final loopwhich aims to ease the burden on e-commerce businesses through its accounting software.
India’s largest wealth manager focuses on ultra-high net worth individuals, 360 A WAMhas agreed to acquire popular Indian mutual fund investment app ET money for approximately 44 million dollars.
AccountIQan accounting technology company founded in Dublin raised 60 million euros (about $65 million) to build “the finance function of the future” for mid-sized companies.
Let it be there Light! The Danish startup secretly comes out with $13 million in seed funding to bring AI into the mainstream.
What else are we writing
Just over a year later announced at WWDC, AppleThe Pay Later feature is only available in the United States not anymore. As TC’s Brian Heater writes: “Pay Later’s life has been extraordinarily short, having officially launched in late March 2023. Ultimately, however, the move isn’t surprising. Apple announced last week WWDC 2024 through which users could access loans Affirm third-party apps via Apple Pay.”
Loop, the auto insurance company co-founded by Harlem Capital co-founder John Henry, has laid off staff as the company struggles to raise money. Dominic-Madori Davis gives us the palette.
Titles of great interest
Wells Fargo bet on a flashy credit card for rent. It is costing the bank dearly, as reported by the Wall Street Journal. TC has startups covered $200 million increase earlier this year. But both companies deny any problems.
Airbase adds analytics, vendor management to spend orchestration platform
Intuit Acquires Zendrive to Expand Usage-Based Auto Insurance
Rental screener Findigs raises $27 million in Series B funding
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