Funding News

Weekly Funding Highlights – 06 March 2024

Welcome to our latest Weekly Funding Highlights! In this roundup, we cover developments across the funding landscape, including strategic investments, funding rounds, and innovative initiatives from key players in the industry.

Monzo, the UK challenger bank with 9 million customers, raises $430 million (€395 million)

London-based fintech Monzo has raised $430 million (€395 million) in a late-stage funding round, reaching a post-money valuation of $5 billion (€4.6 billion). Led by Google’s CapitalG, with participation from GV, HongShan Capital, and existing backers, the investment is notable in a market with declining funding. Despite past challenges, Monzo has shown resilience, attracting nine million retail customers and adding two million in 2023. As a result, the company became profitable in March 2023, offering a range of financial products, including savings accounts and investment funds. Monzo aims to be a comprehensive financial services platform, defying industry trends with its successful funding round. Read more

Mexican microlending start-up Baubap secures $120m (€110m) in debt financing

Baubap, a consumer microlending platform based in Mexico, has secured $120 million (€110 million) in debt financing in a pre-Series A round led by SixPoint Capital Management, a US-based fintech capital partner. The funds will be utilized to expand Baubap’s credit lending activities, focusing on underserved borrowers who may face challenges accessing traditional forms of lending. Baubap, founded in 2018 and headquartered in Mexico City, operates an app-based service that uses alternative data sources to grant consumer microloans of up to MXN 5,000 ($270) within 15 minutes of application. The company claims to currently service half a million active loans per month and aims to attract up to 1.4 million new customers in the coming year. Baubap had previously received $20 million (€18 million) in debt financing from Park Cities Asset Management in November 2022 and $3 million (€2.7 million) in seed funding from Grupo Grameen in March 2021. The latest funding round will provide Baubap with the opportunity to support millions of Mexicans, offering alternatives to expensive informal loans. Read more

EasyKnock clinches $28m (€26m) in Series D to revolutionise home equity solutions

EasyKnock, a trailblazer in the home equity solutions space, has successfully raised $28 million (€26 million) in a Series D funding round. Northwestern Mutual Future Ventures, the venture capital arm of Northwestern Mutual, joined as a key new investor, along with other new and returning backers. EasyKnock provides homeowners with alternative methods to leverage their home equity for cash, and it goes beyond simple cash conversion by offering solutions for buying, selling, and financing new homes. The funding will support the expansion of EasyKnock’s platform, focusing on developing new products to enhance solutions for American homeowners, providing greater financial flexibility. EasyKnock has also made strategic acquisitions, including Ribbon Home, Onder, and Balance Homes, as part of its strategy to build an integrated suite of solutions for American homeowners. Jarred Kessler, EasyKnock’s CEO and Founder, expressed excitement about empowering families with financial flexibility and control, and Craig Schedler from Northwestern Mutual Future Ventures highlighted EasyKnock’s unique approach in the FinTech space. Read more

GenAI startup Ema secures $25 million (€23 million) in funding led by Accel, Prosus

Enterprise-focused generative artificial intelligence (AI) solutions provider, Ema, has successfully raised $25 million (€23 million) in a funding round led by investors including Accel, Section 32, and Prosus Ventures. The investment also saw participation from other prominent names, such as Wipro Ventures, Venture Highway, Frontier Ventures, MAUM Group, AME Cloud Ventures, and Firebolt Ventures. The funding is expected to support Ema’s endeavors in providing AI solutions tailored for enterprises. Read more

Wagely, transforming financial health for workers in Asia, raises $23m (€21m) in new funding

Wagely, Asia’s leading financial wellness platform, has secured $23 million (€21 million) in new funding, comprising equity and debt financing. Capria Ventures leads the equity portion, with participation from existing investors and a private debt fund. Wagely stands out by offering workers in Indonesia and Bangladesh the ability to access their earned pay daily, a pioneering concept. The funds will strengthen Wagely’s core Earned Wage Access (EWA) service in its key markets, empowering workers to manage finances effectively. The platform, provided free to employers as an optional benefit, combines salary tracking with financial literacy resources. The company plans to expand its EWA service in Indonesia and Bangladesh, having disbursed over $25 million (€23 million) in salaries in 2023 alone, serving 500,000 workers through nearly one million transactions. The investment reflects confidence in Wagely’s mission and performance amid a challenging funding environment. Dave Richards, Managing Partner at Capria Ventures, commended Wagely’s execution and growth, emphasizing the potential for the platform to apply Generative AI across various use cases. Read more

Baanx raises $20 million (€18 million) Series A led by Ledger and Tezos

Baanx, a U.K. Financial Conduct Authority-authorized crypto payments firm, has successfully raised $20 million (€18 million) in a Series A funding round led by Ledger, Tezos, Chiron, and the British Business Bank. Ledger, known for its crypto hardware wallets, also offers a Baanx-powered prepaid crypto debit card. The newly secured funds will be dedicated to expanding Baanx’s services in the United States and Latin America in the coming year. Baanx, headquartered in London, recently entered into a three-year partnership with Mastercard in the U.K. and Europe. With this Series A round, Baanx’s total funding now exceeds $30 million (€27.5 milion). The firm’s token, BXX, has experienced an approximate 8% increase in the past 24 hours. Read more

BaaS vendor Synctera lands additional $18.6m (€17m) Series A cash injection

US-based Banking-as-a-Service (BaaS) platform Synctera has secured an $18.6 million (€17 million) funding boost led by Lightspeed and Fin Capital, supplementing its $33 million (€30 million) Series A from 2021. The funds will fuel the expansion of its embedded banking and finance business, supporting larger and more complex use cases in both international markets and the US. Launched in 2020, Synctera aims to leverage the latest capital injection to accelerate momentum with enterprise customers; the company had previously received a $15 million (€13 million) strategic investment in 2023, which enabled it to expand into the Canadian market. Additionally, Synctera plans to launch SyncteraPay, a new payment product, in 2024, facilitating payment processing and settlement for firms with existing third-party payment provider relationships. Leigh Gross, with over a decade of experience, has been appointed as the new chief revenue officer to support Synctera’s growth plans. Read more

Denmark’s Formalize raises €15M to become Europe’s leading compliance software

Denmark-based Formalize, formerly known as Whistleblower Software, has secured €15 million in a Series A funding round to enhance its position as Europe’s premier compliance software provider. The investment, led by BlackFin Tech, the venture arm of BlackFin Capital Partners, will help Formalize streamline compliance workflows and automate processes for various frameworks and regulations. The company, which is expanding to Milan and nearly doubling its workforce, aims to address the challenging compliance landscape in the EU with its data compliance platform. Formalize’s whistleblower platform, now known as ‘Whistleblower Software by Formalize,’ is used by over five million employees globally and has seen substantial growth in recurring revenue and employee count since its last funding round in November 2022. The company plans to broaden its portfolio to include data compliance by automating processes for GDPR, NIS2, ISO27001, SOC2, and more. Read more

Fairbanc secures USD 13.3 mln (€12.2 mln) in debt financing

Singapore-based B2B embedded finance startup Fairbanc has secured $13.3 million (€12.2 million) in debt financing from the digital lending arm of Pegadaian, a subsidiary of Bank Rakyat Indonesia. The funds will be used to expand Fairbanc’s operations in Indonesia, focusing on off-balance sheet financing through its recently introduced Buy Now, Pay Later (BNPL) gateway. Fairbanc utilizes supply chain data from FMCG (Fast-Moving Consumer Goods) distributors to automate credit scoring and risk monitoring, providing essential working capital to clients, particularly MSMEs. The BNPL credit offering has allowed Fairbanc to onboard over 550,000 merchants, as it does not require collateral, credit history, smartphone ownership, or digital literacy. The company initially collaborated with Unilever in Bangladesh before expanding to Indonesia in 2021 and plans further expansion in markets like Vietnam and the Philippines. In July 2022, Fairbanc secured $4.8 million (€4.4) in pre-Series A funding, led by Vertex Ventures, with participation from Lippo Group, Asian Development Bank, and Accion Venture Lab. The startup aims to digitize micro-credit for micro-merchants, especially in unbanked and underserved regions. Read more

HR & Fintech Platform RemotePass Raises USD5.5 Million (€5 million) in Series A Funding Led by 212VC

RemotePass, an HR & Fintech platform facilitating global management, payment, and retention of remote workers, has secured $5.5 million in Series A funding led by 212 VC. Founded by Kamal Reggad and Karim Nadi, the platform caters to clients like Spotify and Logitech, operating in over 150 countries. Originally a business travel SaaS, RemotePass pivoted during the COVID-19 pandemic, achieving significant growth. The oversubscribed funding round included investors from the US, Europe, and the Middle East, raising the total capital to over $10 million. The company’s disruptive approach was praised by investors for addressing workforce challenges and democratizing global opportunities. Read more

Turkish fintech firm Dgpays gets int’l investment at $600M (€550M) valuation

Turkish fintech startup Dgpays has received a substantial investment, reaching a $600 million valuation, from European institutions such as Truffle Capital and the European Bank for Reconstruction and Development. The funds will support Dgpays’ global expansion and product development. In parallel, Argela, a subsidiary of Türk Telekom, received recognition for its innovative 5G applications at the GTI Awards, contributing to Türkiye’s digital transformation. Additionally, NBL Games, a new player in the Turkish gaming sector, gained popularity with its first game, “Quiz Crush,” securing a TL 150 million valuation in its initial investment round. These developments underscore the vibrant and evolving landscape of Turkey’s technology and startup ecosystem. Read more

Cyber titan Claroty clinches $100m (€91m) to safeguard critical infrastructure

Cybersecurity firm Claroty has secured a significant $100 million in financing, led by Delta-v Capital and featuring participation from investors such as AB Private Credit Investors and Rockwell Automation. This funding brings Claroty’s total funding to $735 million, solidifying its position in critical infrastructure cybersecurity. The company, dedicated to safeguarding cyber-physical systems (CPS), plans to utilize the funds for scaling its platform, expanding its presence in emerging markets, and intensifying research and development efforts. Claroty has achieved notable milestones, including surpassing $100 million in annual recurring revenue and forming strategic alliances with industry leaders. The investment reflects confidence in Claroty’s innovative approach and its pivotal role in advancing cybersecurity for critical infrastructure worldwide. Read more

Carputty lands $80m (€73m) boost to revolutionise auto finance

Carputty, a FinTech company focused on auto financing and ownership, has secured substantial funding, including a $75 million warehouse financing facility from Silicon Valley Bank and an additional $5 million in equity. Led by TTV Capital, the equity investment includes contributions from Fontinalis Partners, Kickstart Fund, Kinetic Ventures, and Grand Ventures, bringing Carputty’s total capital infusion to over $80 million. The company is known for its innovative approach to auto financing, offering customers flexibility and transparency. With the new funds, Carputty plans to scale operations, enhance services, and expand its market presence, including a significant entry into California, which represents about 12% of the US auto market. The funding underscores strong demand for Carputty’s Flexline™ model and validates its vision for the future of auto financing and ownership. Read more

Yuno secures $25m (€22.9m) in Series A to bolster global expansion in FinTech sector
Global payments orchestration firm Yuno has secured $25 million in Series A funding from investors including DST Global Partners, Andreessen Horowitz, Tiger Global, Kaszek Ventures, and Monashees. Founded by tech veterans Juan Pablo Ortega and Julián Núñez, Yuno offers innovative payments orchestration solutions to influential clients across 40 countries, including McDonald’s, Avianca, inDrive, and Rappi. The funding will support Yuno’s operations in North and South America and fuel its expansion into new markets in Europe, Asia, and Africa. The company’s advanced features, such as one-click checkout modifications and smart routing, have positioned it as a transformative force in sectors like retail, e-commerce, travel, and mobility. Read more
Construction Insurtech Shepherd in California Raises $13.5M (€12.3m) in Series A Funding
San Francisco-based insurtech Shepherd has secured $13.5 million in a Series A funding round led by Costanoa Ventures, with participation from Intact Ventures, Era Ventures, Greenlight Re, and Spark Capital. The funds will be used to expand Shepherd’s underwriting and software team, accelerate product development, and scale its software offerings. The insurtech specializes in commercial construction insurance and is launching a new software service called Shepherd Compliance, aimed at streamlining and automating vendor compliance reviews in the commercial construction sector. Read more

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