Welcome to TechCrunch Fintech! This week, we look at layoffs at BaaS startup Unit and auto insurer Loop, as well as Brex’s decision to ditch its co-CEO model, Apple killing Pay Later, and more!
To get a collection of TechCrunch’s biggest and most important fintech stories delivered to your inbox every Tuesday at 7:00am PT, register here.
The big story
Unit is the latest banking-as-a-service startup to lay off staff, co-founded by Itai Damti and Doron Somech noting in a blog post on June 17 that the company (last valued at $1.2 billion) had let go about 15% of its staff. (Synctera cut headcount in March and Treasury Prime cut its workforce in half on February). The unit declined to share how many workers were affected or how many remain.
In other BaaS news, the Federal Reserve has ordered Evolve Bank (partner of Synapse and Mercury) “to strengthen risk management programs related to fintech partnerships as well as anti-money laundering laws.” Meanwhile, the CEO of troubled fintech Synapse reportedly has raised $10 million for a new robotics startup even while questions remain about where the $85 million in customer savings is.
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 scale where we’re starting to see some of the cracks in the co-CEO model,” Dubugras said. “We thought this would allow for much faster and better decision-making.” It feels like Brex is growing up. The pair also said a secondary share sale is likely to happen before it goes public. The company also told TechCrunch that it launched a new checking account for businesses in partnership with Column, a fintech started by Plaid co-founder William Hockey, as well as access to Brex business accounts when onboarding through Stripe Atlas.
Dollars and cents
Founded by two ex-Flexport accountants Mary Antony and Kelsey Gootnick, automated fintech financial reporting InScope has raised a $4.3 million round led by Lightspeed Venture Partners. Speaking of Lightspeed, the company also led a $35 million round Finalloopwhich aims to lighten the burdens for e-commerce businesses through its accounting software.
India’s largest wealth manager focused on ultra high net worth individuals, 360 A WAMhas agreed to acquire popular Indian mutual fund investment app ET Money for about $44 million.
AccountsIQa Dublin-based accounting technology company, has raised €60 million (about $65 million) to build “the finance function of the future” for mid-sized companies.
Let there be Light! Danish startup comes out of stealth with $13 million in seed funding to bring artificial intelligence to the mainstream.
What else are we writing?
A little over a year after it was announced at WWDC, appleThe US-only Pay Later feature is no more. As TC’s Brian Heater writes: “Pay Later’s life was extremely short, having officially launched in late March 2023. Ultimately, however, the move is hardly surprising. Apple announced at last week’s WWDC 2024 that users will be able to access loans via third party app Confirmation 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 capital. Dominic-Madori Davis gives us the scoop.
High interest titles
Wells Fargo bet on an impressive credit card rental. It is costing the bank dearly, as reported by the Wall Street Journal. TC covered the startup’s $200 million raise earlier this year. But both companies deny any problems.
Airbase adds analytics, vendor management to spend orchestration platform
Intuit to acquire Zendrive to expand usage-based auto insurance
Rental startup Findigs raises $27 million in Series B funding
Want to get in touch with a tip? Email me at maryann@techcrunch.com or send me a message on Signal at 408.204.3036. You can also send a note to the entire TechCrunch crew at tips@techcrunch.com. For more secure communications, click here to contact uswhich includes SecureDrop (instructions here) and links to encrypted messaging applications.
