TransferWise Raises $280 Million in Series E

In a round led by Old Mutual Global Investors and venture capital firm IVP, TransferWise has raised $280 million in new funding. The new capital, which takes the London-based fintech’s total financing to more than $396 million, will be used to help the money transfer innovator grow its services and expand its global presence – particularly in Asia. The Series D also will enable TransferWise to build on its newly-launched service that helps SMEs reduce or even avoid conversion fees by letting them hold money in different currencies.

Also participating in the round were new investors Sapphire Ventures and World Innovation Lab, as well as existing investors Andreessen Horowitz, Ballie Gifford, and Richard Branson. TransferWise now has an estimated valuation of $1.6 billion.

Quoted in Reuters, TransferWise finance director Matthew Briers noted that the company was “moving significant amounts of money on a monthly basis,” but there is still room for growth. “There are still many trillions of dollars that are moving cross-border,” he said. In addition to plans to expand into the Asia-Pacific region, TransferWise added that it will launch in India “within the next year.” An API that will enable financial institutions to readily access Transferwise’s platform is also in the cards, the company said. Bloomberg’s coverage of the news also featured company chairman and former CEO Taavet Hinrikus hinting at the “very high likelihood” of TransferWise becoming a public company, though Hinrikus added it was “still quite a number of years away.”

TransferWise demonstrated its platform at FinovateEurope 2013. Founded in 2010, the company has more than two million customers and more than 750 currency routes. Last month, TransferWise unveiled new fees for GBP transfers, a month after the company was named to the European Fintech Awards & Conference’s European Fintech 100. Bringing its Borderless Accounts solution to Canada in August, TransferWise announced in July that its customers could use ApplePay to send money globally via its platform – the same month co-founder Kristo Käärmann took over as CEO of the company. With more than $1 billion in transferred funds each month, TransferWise reached profitability in May of this year.

Finovate Alumni News

On Finovate.com

  • Trends Rise to the Top at FinovateAsia.
  • TransferWise Raises $280 Million in Series D.

Around the web

  • Bar Harbor Bank & Trust converts to Jack Henry Banking’s SilverLake system.
  • Dime Community Bank ($6.44 billion in assets) to deploy real-time core banking platform and digital banking solutions from Fiserv.
  • iSignthis wraps up $6.5 million private placement.
  • BizEquity bolsters executive team, adding two new VPs in product management and engineering, Amir Tahvildaran and Eric May.
  • Dwolla’s Access API helps mobile debt repayment and savings app Qoins grow margins by 10%.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Tink Receives $16.5 Million in Funding, Announces Expansion, New Clients.
  • BLUERUSH Raises $1.3 Million in New Funding.

Around the web:

  • Blackhawk Network appoints Charles O. Garner as Chief Financial Officer.
  • Tavant enabling digital mortgage experience for goodmortgage.com.
  • TechCrunch: TransferWise changes fees for GBP transfers, introduces complicated flat transaction fees.
  • Chain.com announces a new service called Sequence, a cloud-based ledger service for managing balances in financial and commerce apps.
  • Fidor partners with Eight to jointly design the customer experience for Fidor’s  financial services marketplace.
  • Temenos and Abu Dhabi Global Market announce fintech collaboration.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alums Earn Spots in European Fintech 100

Powered by collaborative Belgian innovation platform, B-Hive, and Dutch financial consulting firm, Alex van Groningen BV, the European Fintech Awards & Conference recognize fintech innovators working in a variety of areas ranging from the Blockchain/Bitcoin and Financial Inclusion to InsurTech and Payments.

The awards consist of a European Fintech 100 and a Top Three which will be selected from among the top three startups in each of the conference’s nine categories during a pitch contest at the end of September. Here are the Finovate alum finalists who will compete for top honors in their respective categories this fall.

Dorsum (FinovateEurope 2017)

  • Category: Innovative Banking Software
  • Founded in 1996
  • Headquartered in Budapest, Hungary
  • Róbert Kő is CEO and Founder

Meniga (FinovateEurope 2017)

  • Category: PFM / Robo Advisory
  • Founded in 2009
  • Headquartered in London, U.K.
  • Won Finovate Best of Show three times
  • Georg Ludviksson is CEO

Revolut (FinovateEurope 2015)

  • Category: Challenger Banks
  • Founded in 2013
  • Headquartered in London, U.K.
  • Nikolay Storonsky is CEO and founder

TWINO (FinovateEurope 2016)

  • Category: Alternative Finance
  • Founded in 2015
  • Headquartered in Riga, Latvia
  • Jevgenijs Kazanins is CEO

Below are the Finovate alums that have been named to the European Fintech 100.

 

 

 

 

See the full European Fintech 100 list.

Interested in fintech in Europe and the U.K.? Finovate brings its new, expanded format to London in February. With live demos on Days One and Two, and a diverse range of keynotes, panel discussions, and round tables with fintech professionals on Days Three and Four, FinovateEurope 2017 is an event you won’t want to miss. Visit our FinovateEurope page today to learn more and to take advantage of huge early-registration savings.

Finovate Alumni News

On Finovate.com

  • HotDocs Integrates with Data Management Solutions Provider, Advologix.

Around the web

  • iSignthis to gain from proposed bill to strengthen Australia’s AML laws.
  • Alkami Adds Adrianne Court as New Chief Human Resources Officer.
  • TransferWise brings its Borderless Accounts to Canada.
  • Quid unveils new platform redesign.
  • Cloud Lending Solutions launches upgrades to existing lending solutions; launches CL Portal.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Lendio’s Marketplace surpasses $500 Million in Loans.
  • Worldpay Ships New Features for Worldpay Total
  • Braintree Tops A Billion Transactions Per Quarter Mark

Around the web

  • Temenos Marketplace now hosts Moroku’s Chore Scout.
  • TransferWise links with Apple Pay globally.
  • Vasco names Scott Clements president and CEO.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Expensify Announces Five New Receiptburner Partners.
  • Flybits Raises $6.5 Million to Help Banks Put Data to Work

Around the web

  • Jumio introduces eyeball tracking to the “liveness” check of its biometric authentication solution, Netverify.
  • NYMBUS adds executive talent, opens center of strategic excellence in Glastonbury, Connecticut.
  • Co-founder Kristo Käärmann takes the helm at TransferWise.
  • PayPal announces strategic partnership with Samsung Pay.
  • ThreatMetrix named the Leader in The Forrester Wave: Risk-Based Authentication, Q3 2017.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

44 Alums Populate CB Insights’ Fintech 250 List

This week, CB Insights unveiled its Fintech 250 list. The research outfit selected 250 emerging, private companies in 17 sub-sectors of fintech that are changing the face of financial services. The roster includes 44 Finovate and FinDEVr alums that were selected using CB Insights’ data-driven process that analyzes company momentum, market participation, funds raised, and investor quality.

The list is in alphabetical order.

Algomi

AutoGravity

Avalara

Behalf

Betterment

Blend

Chain

Coinbase

Credit Karma

Currencycloud

CurrencyFair

Fenergo

Financeit

Gusto (formerly ZenPayroll)

Juvo

Kabbage

Kensho

Kreditech

Klarna

LendUp

Moneytree

PayNearMe

Payoneer

Personal Capital

Plaid

Quantopian

Quovo

Revolut

Ripple Labs

Roostify

Signifyd

SocietyOne

Socure

Tink

Token

Tradeshift

Transferwise

TrueAccord

Trulioo

VATBox

Wealthfront

Xignite

Zooz

Zopa

Europe’s Got a Brand New Bank as Klarna Earns License

As former Vice President Joe Biden might put it, today’s news that Klarna has been granted a full banking license is truly a BFD.

“Big Fintech Deal,” that is.

“We are now one of Europe’s largest banks with 60 million customers, 70,000 merchants, and working seamlessly across borders,” Klarna CEO Sebastian Siemiatkowski said (pictured). He called the banking license an “exciting milestone” for the Stockholm, Sweden-based company, in specific, and for the European banking sector, in general. The full banking license was granted by the Swedish Financial Supervisory Authority, Finansinspektionen, and will enable Klarna to provide a range of new services – from payment cards to digital wallets – to consumers throughout the continent. Indeed, TechCruch reported today that as part of the licensing, Klarna will legally change its name to “Klarna Bank” – though it will continue to operate in the market as “Klarna.”

Highlighting the company’s history as a e-commerce innovator and its future as a “consumer-oriented, product driven, and technology intensive bank,” Siemiatkowski trained his sights on retail banking itself. “We will … (provide) solutions that ensure a smooth customer experience, help people streamline their financial lives and continue to support businesses by solving the complexity in handling payments,” he said, adding, “the opportunities are tremendous, it is a thrilling prospect.”

Coverage of the news in The Financial Times notes that Siemiatkowski had planned on making this kind of move for some time. Blaming regulations for helping limit banks’ exposure to the competition that is commonplace in the technology world, Siemiatkowski criticized the way too many banks provide customer service that is both poor and overpriced. Ironically, he suggested that new, disruptor-friendly, regulations might be just the fix that’s needed, saying new rules might “set the right prerequisites for the destruction of that industry.”

Founded in 2005, Klarna demonstrated its after-delivery payment solution at FinovateSpring 2012. Earlier this month the company announced a major new strategic investor, Brightfolk, which acquired shares valued at more than $225 million from existing Klarna shareholders. Brightfolk is held by Anders Holch Povlsen, owner of European fashion company, BESTSELLER, which is a long-time partner of Klarna. In February, the Klarna integrated with Radial’s Payment platform, expanding e-commerce payment options for the company – the same month Klarna announced that it was acquiring German online payment provider, BillPay, from Wonga. Klarna began the year with news that it was teaming up with ASOS Partners, bringing its “pay after delivery” option to consumers in the Nordic region.

With more than $376 million in funding. Klarna is believed to have a valuation of $2.25 billion. The company is among a number of fintech companies in Europe and the U.S. that are pursuing banking licenses to diversify their businesses of late. Online lender SoFi applied for federal deposit insurance earlier this month, one significant step toward launching an digital-only SoFi Bank. And London’s TransferWise unveiled a new “Borderless” foreign exchange account in May that observers believe is part of the company’s goal to more directly challenge banks.

Finovate Alumni News

On Finovate.com

On FinDEVr.com

  • Check out our latest FinDEVr Previews featuring ISARA and eSignLive by VASCO.

Around the web

  • TransferWise introduces multi-currency bank accounts for businesses.
  • Langley FCU to deploy Episys core system from Jack Henry & Associates’ Symitar division.
  • Great Southern Bank selects cloud banking technology from nCino.
  • getAbstract and CREALOGIX enter into a digital learning partnership.
  • InComm partners with Sony to deliver gift cards in Hong Kong.
  • NIIT Technologies partners with AI company Arago.
  • AutoGravity receives the 2017 North American Frost & Sullivan Entrepreneurial Company of the Year Award.
  • Fiserv launches SecureNow to integrate cybersecurity protection for digital banking.
  • Finextra: ABN Amro selects Fenergo to support KYC.
  • Yandex.Money brings Android Pay to Russia.
  • Misys FusionBanking Essence to power online and mobile banking offering for Crnogorska Komercijalna Banka (CKB).
  • Trustly to power online bank payments at leading online fashion retailer Boozt.com

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.