Welcome to TechCrunch Fintech! This week, we look at the long-term implications of Synapse’s bankruptcy on the fintech sector, Majority’s impressive ARR milestone, and more!
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The big story
Last week, we mentioned how Copper banking, a digital banking service aimed at teenagers, abruptly discontinued its bank deposit accounts and debit cards. The startup said its banking middleware provider, Synapse, the sunset of his “imminent” service was falling. The situation was just one of many where companies and consumers are affected by the collapse of Banking-as-a-service (BaaS) company Synapse. I wrote a deep dive into the potential short-term and long-term effects of its collapse on the fintech sector. While it’s certainly not the only bad news, it shows just how treacherous things are for the often interdependent world of fintech when a key player is in trouble.
Analysis of the week
Besides Copper, so many niche digital banks have struggled lately that it was all the more remarkable to see the immigrant banking platform The majority not only to raise more money, but also to reveal that it had achieved $40 million in ARR since April. This is no easy feat, especially in a crowded field that includes competitors such as Comun, Maza, Alza and Welcome technologies. Founded in 2019 by Swedish immigrant Magnus Larsson, the majority say that in the past year, the company has tripled its revenue while doubling the number of users.
Dollars and cents
fintech in the UK Vitesse, which targets insurance companies with an all-in-one fund management and payments platform, closed a $93 million Series C funding round led by investment giant KKR. The company said it is redoubling its efforts to expand in the US.
Finding, an enterprise-focused set of tools designed to help manage and optimize cloud costs, last week closed a $26 million Series B round led by Red Dot Capital. We covered the company’s launch from stealth in 2022. Finout says it has landed high-profile clients like the New York Times, Tenable and Wiz despite this crowded market, and has seen annual recurring revenue increase ninefold from 2022 to 2023.
Founded by Peter Thiel Valar Ventures — which has backed a number of fintechs — raised a $300 million fund, half the size of its last.
What else are we writing?
Google Pay announced last week the release of several updates that leverage its integrations with other Google products, such as Android and the Chrome browser. People checking out with Google Pay can now see their card’s benefits and privileges before selecting a card. In addition, they can use “buy now, pay later” through partners like Affirm and Zip, and can fill in their card details via biometrics or PIN, instead of entering their security code. The changes are designed to improve consumers’ experience using Google Pay and make it a more competitive option against other payment methods.
Indian digital payment platform Paytm warned of job cuts after reporting that its net loss widened in the fourth quarter as it faces a recent regulatory crackdown.
High interest titles
Stripe launches new payment and financing tools to accelerate UK business growth
Rho works with Navan to manage travel and expenses
Capchase secures $114 million to provide funding to SaaS businesses
ICYMI: Federal prosecutors are looking into financial transactions at Block, owner of Cash App and Square
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