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Weekly Funding Highlights – 21 September 2022

New week – new closed funding rounds! This week’s funding highlights cover personal finance, software, crypto, BNPL, and many more! Take a look at some major investments of this week.

Ratio raises USD 411 mln to transform B2B SaaS payments (Paypers)
US-based fintech Ratio has emerged from stealth and secured a USD 11 mln venture funding and USD 400 mln credit facility to augment B2B SaaS Payments, financing, and pricing. The subscription economy is now a USD 1.5 trillion segment of the recurring revenue market, with industries ranging from software to razor blades deploying subscription-based business models, but companies still face challenges with deferred cash flow, steep discounting, and the time needed to recoup customer acquisition costs, even as customers’ desire for payment flexibility is growing more ubiquitous. The current cash flow crunch has only exacerbated this problem. Ratio’s platform allows SaaS companies and other recurring revenue businesses to offer embedded Buy Now, Pay Later services that granularly match their customers’ cash flow needs. This provides flexibility to the customer, while boosting sales for vendors and giving them immediate access to the value of the customer contract. Read more

US credit card start-up Power raises $316m funding (Fintech Futures)
Power, a New York-based start-up that offers a full-stack credit card issuance platform, has emerged from stealth with $316 million in debt and equity funding. The start-up has raised $300 million in a credit facility and $16.1 million in seed funding led by Anthemis and Fin Capital, with participation from CRV, Financial Venture Studio, Dash Fund, Plug and Play, among other angel investors. Power aims to provide white label fintech infrastructure for consumer, commercial and banking enterprises, embedded within their mobile and web applications and with no need of third-party apps, enabling customers a “frictionless experience” to apply for and manage their cards. Read more

DeFi Platform Maple Finance Aims to Help Struggling Bitcoin Miners With $300M Lending Pool (Coin Desk)
Decentralized finance (DeFi) firm Maple Finance is starting a lending pool with $300 million capacity for mid-size bitcoin (BTC) miners across North America and Australia as crypto winter continues to weigh on the mining industry. Raising capital has become difficult for bitcoin miners this year as the price of bitcoin has slumped and energy prices have skyrocketed. As traditional sources of capital have dried up, new financiers, like Maple, are looking to fill the void. In July, Antalpha, a partner of Bitmain, the largest mining rig manufacturer, announced novel debt instruments for bitcoin miners. Meanwhile, debt restructurings and acquisitions have also started among miners who are trying to survive the bear market. Read more

Southeast Asian fintech Fazz seals US$100mn Series C round (Fintech Magazine)
Fazz, which allows businesses in Southeast Asia to pay, save and get credit easily, has secured US$100mn in Series C funding from the likes of Tiger Global. Southeast Asian fintech Fazz has raised US$100mn in Series C funding, which the Singapore-based firm will use to further build out its platform aimed at the region’s businesses. The Series C round consists of US$75mn in equity funding led by existing investors including Tiger Global, DST Investment, B Capital, Insignia Ventures Partners and ACE & Company. In addition, the fintech has also secured a US$25mn debt facility from Lendable. Read more

Sardine raises $51.5m for fintech fraud platform (Finextra)
Sardine, a behaviour-based fraud and compliance platform for fintechs developed by Coinbase, Revolut and PayPal veterans, has raised $51.5 million in a Series B funding round led by Andreessen Horowitz’s growth fund. The round was joined by a host of big names, including XYZ, Nyca Partners, Sound Ventures, Activant Capital, Visa, Google Ventures, Eric Schmidt, Vikram Pandit, The General Partnership, NAventures, ING Ventures, ConsenSys, Cross River Digital Ventures, Alloy Labs, and Uniswap Labs Ventures. Sardine’s core technology uses AI to provide a real-time fraud score based on the user’s identity, device, and behaviour patterns at the time of account origination and account funding. It also continuously monitors for fraud during account login, deposits, and withdrawals. Read more

Majority raises USD 37.5 mln (Paypers)
Majority, a neobank targeting the US immigrant market, has raised USD 37.5 million in a Series B funding round as it explores new offerings. The digital bank, whose bundled services include a Federal Deposit Insurance Corp. (FDIC)-insured account, debit card, remittance, and international calling, received USD 30 million from Valar and Heartcore Capital, as well as USD 7.5 million in debt financing from a US-based commercial bank. Majority, which first launched its digital banking platform in 2019 to serve the large Nigerian immigrant community in Houston, also announced the opening of three new locations in Florida, as well as a new location in Houston. Read more

HSBC invests $35 million in Monese (Finextra)
Mobile banking startup Monese has bagged a $35 million investment from HSBC to support its move into the banking-as-a-service space. London and Tallinn-based Monese targets expats and immigrants who typically struggle to get a traditional bank account. The latest investment brings the total raised by Monese to $208 million and comes on the heels of a September deal and investment from Investec, which intends to adopt Monese’s new BaaS platform to deliver its digital current account offering in the UK. Read more

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