Welcome to TechCrunch Fintech! This week, we look at LoanSnap’s woes, Nubank and Monzo’s positive milestones, a slew of fintech funds, and more!
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The big story
AI mortgage startup LoanSnap they are in trouble. The company faces at least seven lawsuits from creditors and has been kicked out of its Southern California headquarters, leaving employees worried about the company’s future, according to TechCrunch. LoanSnap has raised about $100 million in funding since a seed round in 2017, $90 million of which was raised between 2021 and 2023. Although LoanSnap hasn’t shut down yet, according to two employees, the atmosphere inside the company is sour as employees await clarity on the company’s future.
Analysis of the week
Neobanks are having a moment. Or at least some are. UK based Neobank Monzo revealed its first full-year pre-tax profit. The company hit profitability for the first time last March, a milestone it owes loan product and the UK high interest rates. Meanwhile, Brazilian digital bank Nubank became the most valuable financial institution in Latin America, surpassing Itaú, he said Bloomberg. The NYSE-traded company also took its first tentative steps into the mobile network sector, launching an eSIM (built-in SIM) service for travelers.
Dollars and cents
Relaya business banking and money management service for SMBs, closed a $32.2 million Series B round led by Bain Capital Ventures.
Fintech creator Slingshot announced a $2.2 million pre-seed round, with participation from Dorm Room Fund, 1916 Enterprises, Key Partners Group, and Vincent Francoeur, former head of web and mobile at Blizzard.
European mental health insurance platform I feel raised a $20 million Series B investment led by FinTLV Ventures and Korelya Capital.
Forward announced $16 million in seed funding to take on Stripe and lead the future of integrated payments. Commerce Ventures, Elefund and Fiserv led the round.
Romanian startup FintechOS raised $60 million to help older banks and insurance companies deal with new banks.
Fritza startup that aims to act as a social financial community for the Gen Z population has raised $2.8 million in a seed funding round led by Restive Ventures.
Solutions by texta company that gives people a way to pay their bills and apply for loans via text messages has secured $110 million.
based in Saudi Arabia Simplified Financial Solutions Company (SiFi), an expense management platform in the MENA region, has raised $10 million in a seed funding round.
What else are we writing?
Film, the world’s most valuable fintech startup, said on May 31 that it will temporarily switch to an invitation-only model for new account registrations in India, calling the move “a tough decision” as it navigates the country’s evolving regulatory landscape. The startup, which competes with Cashfree and YC-backed Razorpay in the country, will now focus on supporting a select number of businesses, particularly those focused on international expansion.
Indian conglomerate Reliance Group is making its boldest consumer move yet in financial services with the launch of JioFinance, an app that aims to be a one-stop shop for UPI digital payments, loans and insurance.
Also:
Germany’s financial regulator ends anti-money laundering cap on N26 listings after $10 million fine
Ambani’s Reliance fires opener in fintech fray, launches JioFinance app
High interest titles
Robinhood earns up to $1 billion in share buyback plan
Robinhood Launches Crypto API for US Merchants
Deel uses Alviere to help global companies pay US workers
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