Welcome to TechCrunch Fintech (formerly The Interchange)! This week, we look at the hot payroll space globally, neobank Dave’s financial results and relative stock boost and more!
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The big story
This week alone we covered three interesting offers in the global payroll space. For beginners, Deel announced that it is acquiring an Africa-based payroll and HR software and services company PaySpace in its largest acquisition to date. It also said it surpassed $500 million in annual recurring revenue (ARR). Then I wrote about Remofirsta startup to also take on Deel and Rippling, securing $25 million in Series A funding. Tage also wrote about how the UAE-based RemotePass announced that it had raised $5.5 million in Series A funding led by Istanbul-based 212 VC. There’s no denying that this space is hot, hot, hot.
Listen to Alex Wilhelm and I talk more about this on Equity:
Analysis of the week
We look at another fintech that is recording positive financial results. Neobank Dave told us via email that it had achieved profitability for the first time as a public company, posting adjusted EBITDA of $10 million in the fourth quarter and GAAP net income of $200,000. The company also beat guidance for fiscal 2023 and reported a 26% increase in non-GAAP operating income with a big boost from its ExtraCash offering. Its stock soared on the news – starting the week opening March 4 at $22.46, hitting a new 52-week high of $43.99 on March 7, before closing at $36 on March 8.
Dollars and cents
Colombian two-year payments startup Yuno has reached a $150 million valuation with $25 million in Series A funding from investors including DST Global Partners, Tiger and a16z.
challenger bank based in London Monzo raised a late-stage funding round of $430 million at a post-funding valuation of $5 billion.
Business banking startup based in Paris Short is using an undisclosed portion of its cash hoard to acquire Regate, an accounting and financial automation platform.
Leverage the wealth has expanded into tax consulting and raised a $17 million Series A expansion.
The Artemis Fundwhich invests in underrepresented founders in fintech, commerce and care, closed its second fund with $36 million in capital commitments.
What else are we writing?
appleThe iOS 17.4 update is mainly about adapting iOS to the EU Digital Markets Regulation. But the company also released a new API called FinanceKit that allows developers to retrieve transactions and balance information from Apple Card, Apple Cash and Savings with Apple.
Georgina Merhom wants to shake up the status quo SOLOa first-party data collection and reporting engine that integrates user-licensed data sources including financial transactions, electronic records and digital footprints to tell a more complete story about one’s financial behavior.
PayPal announced that it’s rolling out “Tap to Pay” for iPhone merchants through its Venmo and Zettle apps in the US
High interest titles
Capstack Technologies receives strategic investment from Citi Ventures (Capstack covering TC here.)
Argyle Raises $30M to Expand Automated Income and Employment Verification
Synctera raises $18.6 million in Series A-1 funding (TC covered Synctera’s Series A here.)
The latest fintech retreat: a $2 billion Western Union challenger suspends services in the US
Treasury Prime has laid off half its staff (TechCrunch covered the $40 million raise in February 2023.)
Brazilian fintech CloudWalk announces $320.5 million in revenue and plans US expansion
TomoCredit is pivot to B2B with TomoScore, after several reports suffering
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