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Weekly Funding Highlights – 13 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.

Flagstone secures £108m investment to revolutionize UK savings market

Flagstone, a cash deposit marketplace, has secured a substantial equity investment of £108 million from US venture capital firm Estancia Capital Partners. Founded in 2015, Flagstone has become the UK’s largest platform for cash savings, known for its extensive network of banks and savings account options. The strategic investment will empower Flagstone to expand its market presence, catering to individual savers, SMEs, and charities. The platform offers access to over 200 savings account offerings from 60 providers, either directly or through white-label FinTech platforms, financial advisers, or brand partnerships. Flagstone has over 600,000 users and total Assets under Administration (AUA) exceeding £11 billion, with consistent quarterly growth in 2023. The investment will be used for strategic initiatives to strengthen Flagstone’s market leadership, including organic growth, partnerships, and potential acquisitions. Flagstone achieved profitability in December 2022 and has maintained profitability since, highlighting its success and operational efficiency. Simon Merchant, co-founder and CEO of Flagstone, sees Estancia Capital Partners’ investment as crucial for capitalizing on emerging opportunities and consolidating the platform’s market leadership. Read more

PPRO raises €85 million

E-commerce payments firm PPRO has successfully completed a dual tranche funding round, securing €85 million from a mix of new and existing investors, including Eurazeo, HPE Growth, Sprints, PayPal Ventures, JPMorgan, Citi Ventures, and funds managed by BlackRock. Despite reporting losses of £19.4 million in the last financial accounts for the 12 months ending December 31, 2022, PPRO experienced a stellar 2023 with record revenue of £56 million. CFO Rahul Raswant stated that the capital infusion would be used to pursue growth in key markets and enhance the global network of local payment methods. PayPal Ventures, a long-term partner, expressed pride in being part of PPRO’s journey. Read more

SaaS fintech startup Perfios secures $80 million from TVG, attains unicorn valuation

Perfios, a fintech-focused software startup based in Bengaluru, has successfully secured $80 million in funding from Teachers’ Venture Growth (TVG), the late-stage venture and growth investment arm of Ontario Teachers’ Pension Plan. This investment has propelled Perfios to a billion-dollar valuation, earning it the coveted unicorn status. The company plans to utilize the funds for acquisitions, international expansion, and enhancing its tech stack to manage customer services in various sectors. TVG India director Darius Vakil will be joining Perfios’ board as a nominee director. Perfios is also considering an IPO to raise $500 million in India, aiming for a $2 billion valuation. Additionally, the startup is eyeing entry into the US and European markets by 2024. Perfios had previously received significant investments from Kedaara Capital, Bessemer Venture Partners, and Warburg Pincus during various funding rounds. Read more

Dutch-based Eye Security secures €36M from Bessemer Venture Partners, others to protect SMEs from cyber threats

The Hague-based cybersecurity startup, Eye Security, has successfully raised €36 million in a Series B funding round led by J.P. Morgan Growth Equity Partners. Founded by former Dutch National Security employees in 2020, Eye Security focuses on providing high-level cybersecurity protection to small and medium-sized enterprises (SMEs) across Europe. The funds will be used to expand the company’s presence in the Netherlands, Germany, Belgium, and other European countries in 2024. Eye Security offers an affordable, all-in-one cybersecurity service for SMEs, including endpoint monitoring, awareness campaigns, 24/7 incident response, and cyber insurance. The company’s solution aligns well with the EU’s NIS2 Directive, and it is already utilized by customers in various sectors. J.P. Morgan Growth Equity Partners, managing a $1 billion growth equity fund, sees Eye Security as filling a crucial gap in providing advanced cybersecurity and insurance coverage to mid-market companies and is excited to support the company’s mission. Read more

TheyDo raises $34M in funding to bolster journey-centric business practices.

The company is raising $34M to support journey-centric business practices, offering unlimited user access to their platform, TheyDo. Acknowledging past failures, TheyDo aims to overcome traditional transformation pitfalls by providing dynamic, integrated views across organizations. They highlight the growing journey-centric movement, plan investments in education and expansion, and offer free user access to democratize journey-centric thinking. Read more

Vouch secures $25m in funding round led by Ribbit Capital

Vouch, a business insurance provider for high-growth companies, has secured $25 million in its Series C-1 funding round led by Ribbit Capital. The funding comes after a successful year for Vouch, marked by a 66% YoY revenue growth and favorable loss ratio outcomes. The company plans to use the funds to enhance its insurance products, expand distribution channels, and invest in its technology platform. Notable achievements in 2023 include expanding reinsurance partnerships and launching AI Insurance to address risks associated with artificial intelligence technologies. The funding positions Vouch for further expansion and innovation in the insurance sector. Read more

Griffin launches as UK’s latest full-stack BaaS platform with $24m boost

Griffin, a full-stack Banking as a Service (BaaS) platform, has successfully transitioned into a fully operational bank after receiving approval from UK financial regulators, the PRA and FCA. The achievement was accompanied by a $24 million funding round led by MassMutual Ventures, NordicNinja, and Breega, with additional support from existing investors Notion Capital and EQT Ventures. Griffin aims to transform the banking sector by providing technology-driven firms with solutions for banking, payments, and wealth management. The platform utilizes automated compliance technology and an integrated ledger to streamline financial operations. The funding will be used to scale the bank and improve infrastructure. Griffin emphasizes a human and ethical culture, including environmental initiatives, positioning itself at the forefront of the intersection between technology and finance. The platform’s innovative approach has garnered support and confidence from investors. Read more

Moyasar raises $21m in Seed funding

Saudi fintech Moyasar has successfully concluded a seed investment round, raising SAR 78.75 million ($21 million). Derayah Ventures Fund participated in the funding, which will aid Moyasar in developing digital payment solutions and expanding its presence in the financial technology sector. Established in 2016, Moyasar holds a license as a payment services provider from the Central Bank of Saudi Arabia since 2002. The company offers various financial payment products, including electronic payment portals, billing services, subscriptions, and settlement of payments on electronic platforms. The investment will facilitate the creation of new solutions for private companies and government institutions in their digital financial transactions. Read more

Payments innovator Baanx secures $20m in Series A investment

Baanx, a cryptocurrency payments platform, has successfully raised $20 million in a Series A funding round led by a consortium including Ledger, the Tezos Foundation, Chiron, and the British Business Bank. This brings Baanx’s total funding to over $35.3 million. Known for managing the Ledger card product and having a strategic partnership with Mastercard, Baanx is expanding its market presence. The company plans to launch services in the U.S. and Latin America, focusing on non-custodial, on-chain products to empower users with control over their funds. The funding will also support product development and geographical expansion. Baanx’s alliance with Ledger signals a future where cryptocurrency payments are secure, universally accessible, and user-friendly. Simon Jones, Baanx’s Chief Commercial Officer, emphasizes the vision of bridging the gap between traditional finance and the crypto world. The company had previously secured over $15.3 million in funding, reflecting sustained investor confidence in its mission and technological capabilities. Read more

Monzo alumni-founded Packfleet raises $10m in funding

London-based logistics startup Packfleet, founded by former Monzo employees, has raised $10 million in a Series A funding round. The investment was co-led by US-based VC firms General Catalyst and Voyager Ventures, with participation from existing investors Creandum, Entree Capital, and Founder Collective. Packfleet, established in 2021 by former Monzo employees including the neobank’s former VP of Design Hugo Cornejo, VP of Marketing and Communications Tristan Thomas, and Engineering Manager Josh Garnham, operates a fleet of “carbon-neutral” courier vans serving businesses such as Pizza Pilgrims and Who Gives a Crap. The funds will be used to expand Packfleet’s presence in London, which experienced 5x growth in 2023, and to enter other cities in the UK. Additionally, the capital will support the development of Packfleet’s proprietary routing software named Pathfinder, deemed critical to its success. Packfleet had previously raised a pre-seed round in 2021 and an £8 million funding round in April 2023. Read more

Amsterdam’s D2X raises €9.1M; gets MiFID MTF Licence for Crypto Derivatives

Amsterdam-based D2X, a crypto derivatives exchange for institutions, secures $10M in Series A funding led by Point72 Ventures. D2X obtains a MiFID MTF license, becoming the first in the EU for cryptocurrency derivatives. It plans to launch a regulated trading venue for cash-settled crypto futures and options and partner with a Tier-1 EU credit institution. By merging features from traditional finance and crypto, D2X aims to meet institutional demand for digital assets. The announcement follows a €5M Seed round in 2022. Incoming CEO Frederic Colette emphasizes reliability and safety for financial institutions entering the crypto market. Theodore Rozencwajg, Co-Founder, highlights D2X’s solution for trading choices. Point72 Ventures expresses excitement in supporting D2X’s mission. Read more

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