Introducing TechCrunch Fintech! This week, we delve into the twists and turns of TabaPay’s decision to back out of the purchase of Synapse’s assets, alongside stock fluctuations for key fintech players, Monzo’s impressive fundraising efforts, and more!
The Headline Story: TabaPay’s U-Turn on Synapse Deal
In a flurry of conflicting statements, TabaPay has confirmed to TechCrunch its withdrawal from plans to acquire troubled banking-as-a-service startup Synapse’s assets. Synapse points fingers at banking partner Evolve Bank & Trust, which denies involvement, while Mercury dismisses Synapse’s claims. The $9.7 million deal is now definitively off, leaving questions lingering about the true reasons behind the fallout.
Week’s Analysis: Fintech Stocks Take a Hit
Despite commendable earnings, certain fintech stocks experienced downturns last week. Dave, boasting improved credit performance with AI, saw a 7.5% drop. Affirm reported favorable figures but suffered a significant decline, possibly linked to Shopify. Meanwhile, Nubank celebrates surpassing 100 million customers, a remarkable feat outside Asia.
Financial Highlights: Monzo’s Fundraising Surge
Monzo secures another $190 million to fuel international expansion, particularly in the U.S. This latest raise, following a recent $430 million infusion, brings Monzo’s total 2024 investment to over $620 million and its lifetime funding to $1.5 billion.
In other news, Checkfirst, an AI-powered workflow startup founded by Ben Lambert, secures a pre-seed $1.5 million led by Olisipo Way and Hiero VC, with participation from notable angel investors.
What’s Trending: Mercury Transforms into SaaS
Mercury shifts gears to become a Software-as-a-Service company, enhancing its business accounts with bill payments, invoicing, and employee reimbursements. With over 200,000 customers processing $4 billion monthly, Mercury intensifies competition with rivals Brex and Ramp in the fintech arena.
Source: techcrunch.com
