Funding News

Weekly Funding Highlights – 17 April 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.

Embedded FinTech Parafin boosts infrastructure with $125m (€117m) warehouse facility

Parafin, an embedded financial services company, secures a $125m warehouse facility from Silicon Valley Bank (SVB) and Trinity Capital. The investment aims to enhance Parafin’s ability to provide capital to small and medium-sized businesses on platforms like DoorDash and Amazon. Parafin’s innovative machine learning-based underwriting model, supported by SVB and Trinity, customizes financing offers based on sales performance. Their operational model focuses on empowering companies to offer embedded financial services, simplifying complex operations like underwriting and compliance. Parafin’s CEO emphasizes their commitment to helping small businesses overcome financing barriers. Trinity Capital highlights their pride in partnering with Parafin and SVB to provide flexible capital solutions. Read more

Brim Financial Raises $85M (€79.5M) in Series C Funding

Brim Financial, headquartered in Toronto, Canada, has successfully raised $85 million in Series C funding, led by EDC Investments, with participation from Vistara Growth, alongside returning investors White Owl Group, Epic Ventures, and Zions Bank. The fintech infrastructure company plans to leverage this substantial funding to expedite its expansion strategy in the United States. This strategy encompasses broadening its market reach, accelerating product development initiatives, and establishing key strategic alliances within the financial industry. With a focus on enhancing its presence and offerings in the U.S. market, Brim Financial aims to solidify its position as a leading player in the fintech sector. Read more

India’s Electronica Finance Limited lands $48m (€45m) in Series B round

Electronica Finance Limited (EFL) has raised $48 million in its Series B funding round led by UK-based LeapFrog Investments, with support from Aavishkaar Capital, an Indian investment firm. Headquartered in Pune, India, EFL specializes in providing tailored financial products for India’s MSME sector, including rooftop solar loans, machine loans, and working capital loans. The company also offers micro-loans against properties in semi-urban and rural areas, aiming to promote sustainable financial inclusion. The capital injection will strengthen EFL’s balance sheet and fuel its rapid expansion, particularly in India’s manufacturing sector. Stewart Langdon from LeapFrog Investments highlights EFL’s role in promoting financial inclusion and climate resilience for SMEs, creating job opportunities and supporting communities. EFL’s funding round adds to a series of notable Series B rounds in the fintech sector this year, including Helcim, Eye Security, and Moove. Read more

European Neobank Bunq Raises $31 Million (€29 Million) in New Funding

European neobank Bunq secures $31 million in funding following a profitable year in 2023, with a net profit of $57 million. The funding will support Bunq’s expansion plans in the U.K. and the resubmission of its banking license application in the U.S. Despite regulatory challenges, Bunq remains committed to resolving differences with regulators. The neobank raised $111 million in July and introduced its AI financial copilot, Finn, aimed at transforming banking through advanced technology. CEO Ali Niknam expresses excitement about Finn’s potential to revolutionize banking. Read more

FinTech startup Pactio raises $14m (€13m) from EQT Ventures to enhance private capital workflows

Pactio, a next-generation FinTech platform, secures a $14m Series A funding round led by EQT Ventures, with contributions from prominent private equity insiders and technology angels. Notable investors include Matt Henderson, former Stripe Europe CEO, and Tom Greenwood, founder of Volt, alongside early backers like Tom Blomfield of Monzo and Matt Robinson of GoCardless. Pactio aims to revolutionize the private capital market, projected to reach $29tn in assets under management by 2040, by building critical infrastructure and leveraging advanced technology like artificial intelligence. The funds will fuel the enhancement of Pactio’s digital architecture, focusing on integrating AI and extending functionality across the investment lifecycle. CEO Eric Heimark emphasizes the need for digital transformation to match the sophistication of workflows in the private markets industry, aiming to elevate quality of work, reduce risk, and expand ownership. Read more

Singapore-based FinTech FlexM Global AS welcomes $12.5m (€11.7m) investment from 6G Digital

6G Digital Private has acquired a 25% stake in FlexM Global, a leading FinTech firm based in Singapore, for $12.5 million. Under the leadership of entrepreneur Rune Wahl Nilsson, FlexM is reshaping digital banking with an emphasis on accessibility and efficiency. This partnership aims to redefine financial services delivery by combining 6G Digital’s global network with FlexM’s cutting-edge technology. With this strategic acquisition, 6G Digital seeks to challenge traditional banking norms and introduce affordable mobile financial services worldwide. Chairman M.A. Zaman highlights the goal of offering state-of-the-art financial services across six continents. Read more

Iceberg Data Lab clinches $10m Series A for ESG data expansion, led by Beringea

Iceberg Data Lab, a leader in climate and biodiversity data solutions for financial institutions, has achieved the initial close of its Series A funding, securing US$10 million (£8 million). Spearheaded by Beringea, a renowned transatlantic venture capital firm, the investment round also includes participation from MAIF Avenir, AXA Investment Managers, and existing investors. This underscores strong confidence in IDL’s mission and growth potential. Specializing in environmental data provision, IDL meets the growing demand in the financial sector for insights into climate, nature, and biodiversity impacts. The funding will fuel IDL’s global expansion, particularly in the UK, and enhance product offerings with cutting-edge technologies. CEO Matthieu Maurin emphasizes IDL’s commitment to aiding clients in accelerating their sustainability efforts and aligning with global environmental goals. Read more

Proptech Coadjute raises £10M (€11.6m) from major banks

London-based property technology startup Coadjute receives a £10 million investment from major banks including Lloyds Banking Group, Nationwide, NatWest, and Rightmove, bringing its total investment to £23 million since its inception in 2018. Coadjute aims to address inefficiencies in the home buying process by providing an online network and data sharing platform. This platform brings together estate agents, conveyancers, mortgage lenders, buyers, and sellers onto a single network, allowing for secure and standardized data exchange regardless of the system used by each party. The company’s application utilizes Corda technology to ensure end-to-end encryption for communications and transactions. This investment underscores a collective effort to streamline the home buying journey and enhance transparency within the property industry. Read more

Ghanaian fintech startup Zeepay raises equity funding to support ongoing expansion

Zeepay, a Ghanaian fintech startup, secures equity investment to fuel its expansion across Africa and the Caribbean. Established in 2014, Zeepay focuses on digital infrastructure to connect various digital assets like mobile money wallets, cards, bank accounts, and more. It specializes in instant settlement of remittances into mobile money wallets in over 20 countries, facilitating transactions worth over US$3 billion last year. With a previous Series A funding of US$7.9 million in June 2021, Zeepay now receives further investment from Africa50, Oikocredit, Injaro, Verdant Capital Hybrid Fund, and I&P. The funding will support Zeepay’s geographical expansion and deepen its services to international money transfer operators and remittance senders/recipients. CEO Andrew Takyi-Appiah expresses gratitude for stakeholders’ support and outlines plans for expansion, aiming to increase mobile money reach in at least 10 countries over the next 2 years. Raza Hasnani from Africa50 praises Zeepay’s pivotal role in digital payments infrastructure across Africa and beyond, highlighting its importance in facilitating remittance flows, crucial for many African economies. Read more

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