Welcome to TechCrunch Fintech! This week, we look at the drama surrounding TabaPay’s decision not to buy Synapse’s assets, as well as shares falling for some fintechs, Monzo raising even more capital and more!
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The big story
He had a lot to say, he said, pointing the finger at the fintech area last week. Instant payments company TabaPay has confirmed to TechCrunch that it has abandoned plans to buy the assets of troubled banking-as-a-service startup Synapse. Synapse said the problem was banking partner Evolve Bank & Trust. And Evolve said it was not involved and not to blame. Meanwhile, another player in the saga, Mercury, says Synapse’s claims have “no merit.” What really happened? Maybe one day we’ll find out. But for now we know for sure that the $9.7 million deal has been called off.
Analysis of the week
Despite not-too-bad earnings reports, some fintechs saw their shares fall last week. Digital bank Dave said “improved its credit performance over the past year using artificial intelligence (AI),” yet its stock was down more than 7.5% on May 10. Buy now pay later giant Affirm reported a smaller than expected loss and its guidance beat expectations last week, yet its stock took a big tumble — some say in sympathy with Shopify. Shares were trading on May 10 at $31.59, down 9.25% that day. Meanwhile, Nubank has announced that it has officially struck 100 million customer markwhich it claims made it the first digital banking platform to reach this milestone outside of Asia.
Dollars and cents
Monzo raised another $190 million as the embattled bank looks to expand its presence internationally — notably in the US. and $1.5 billion since its inception nine years ago.
Ben Lambert founded an AI-powered workflow tools startup, Check first, which enables remote inspections and allows businesses to schedule inspectors based on geographic location and qualifications. The company has now raised a $1.5 million pre-seed round led by Lisbon-based venture capital firm Olisipo Way and solo firm GP Hiero VC. Notion Capital and angel investors from companies such as Source Point, Busuu, Swogo and FaceIT also participated.
What else are we writing?
Digital banking startup Mercury is turning into a SaaS company, now putting software into its bank accounts. This will give its business customers the ability to pay bills, bill customers and reimburse employees, the company told TechCrunch exclusively. The additional features put the company in even more direct competition with Brex and Ramp, two fintech rivals that have been battling for market share in an increasingly crowded space for years. Mercury says it has over 200,000 customers who send $4 billion in outgoing payments each month through its platform. You can listen to the Equity crew talk here:
High interest titles
Fintech Farm raises $32 million to expand its ‘neobank in a box’ model in India
As banks cut back on risky fintechs, one tiny lender is leaning in
Former CEO drops lawsuit against Better.com and its founder. TechCrunch originally covered the lawsuit in 2022 here.
FIS Unveils Ateli Integrated Funding PlatformThe
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