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Big story
Last week we wrote about the best way to do it Copper banking, a digital banking service aimed at teenagers, suddenly stopped offering deposit accounts and debit cards. The startup stated that its banking middleware provider, Synapse, “immediately” stopped providing services. This is just one of many ways in which the implosion of banking-as-a-service (BaaS) company Synapse is impacting businesses and consumers. I have detailed the potential short- and long-term consequences of its collapse for the fintech sector. While this is actually not all bad news, it does show how dangerous situations may be in the often interdependent world of fintech when one of the key players gets into trouble.
Weekly evaluation
Beyond copper, so many area of interest digital banks have struggled recently that the immigrant banking platform has turn into much more noticeable Majority not only to lift more cash, but also to disclose that it has reached $40 million in ARR since April. This is no easy task, especially in a crowded space with competitors corresponding to Comun, Maza, Alza and Welcome Technologies. Founded in 2019 by Swedish immigrant Magnus Larsson, Majority says the company has tripled its revenue and doubled its user base over the past 12 months.
Dollars and cents
British fintech Vitesse, aimed at insurance firms with a comprehensive treasury and payments management platform, closed a $93 million Series C funding round led by investment giant KKR. The company said it is redoubling its U.S. expansion efforts.
Finout, an enterprise toolset designed to assist manage and optimize cloud costs, closed a $26 million Series B round last week led by Red Dot Capital. We covered the company’s stealth launch in 2022. Finout says that despite a crowded market, it has attracted high-profile clients corresponding to The New York Times, Tenable and Wiz, and annual recurring revenue has increased ninefold in 2022-23.
Founded by Peter Thiel Enterprises of the Valar – which supported many fintechs – raised a fund value $300 million, which is half as much as the previous one.
What else do we write?
Google Pay announced several updates last week that leverage integration with other Google products corresponding to Android and the Chrome browser. People paying with Google Pay can now see the perks and advantages of a card before choosing a card. Additionally, they’ll use buy now, pay later options through partners corresponding to Affirm and Zip, and can enter their card details via biometrics or PIN, moderately than entering a security code. The changes are intended to enhance the comfort of using Google Pay and make it more competitive in comparison with other payment methods.
Indian digital payment platform payment warned of job cuts after reporting that its net loss widened in the fourth quarter amid recent regulatory clampdowns.
High-interest headlines
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