Funding

TransferWise Doubles Valuation with $292 Million Funding

TransferWise Doubles Valuation with $292 Million Funding
By David Penn Posted on
Categories: Funding, TransferWise

UK-based international payments fintech TransferWise has doubled its value to $3.5 billion after raising $292 million in secondary funding, reports Jane Connolly of Fintech Futures (Finovate’s sister publication).

The Telegraph reports that the round was led by investors including Lead Edge Capital, Lone Pine Capital and Vitruvian Partners. The Sir Richard Branson-backed firm also received investment from BlackRock and existing investors Andressen Horowitz and Baillie Gifford.T

TransferWise’s strategy of providing cheap exchange rates by using two local transfers for each transaction, instead of more expensive single international payments, has attracted more than five million customers since the fintech was founded in 2011.

According to The Telegraph, TransferWise will use the funds to take on 750 more staff over the next year.

“TransferWise is experiencing phenomenal growth and this investment is testament to that,” said Kristo Käärman, chief executive and co-founder. “We don’t need to raise funds on this trajectory, but we’re humbled by the persistent level of interest.”

TransferWise handles a transaction volume of $5.1 billion across its 12 global offices every month. The company demonstrated its technology at FinovateEurope 2013.

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Marqeta Secures $260 Million in Series E Funding

Marqeta Secures $260 Million in Series E Funding
By David Penn Posted on
Categories: Funding, Marqeta

Global card issuing platform Marqeta, which demonstrated its Payment Gateways technology at FinDEVr Silicon Valley 2016, announced today that it has secured $260 million in new funding in a round led by Coatue Management. The capital will be used to further develop the company’s payment card platform and to fuel global expansion, according to company founder and CEO Jason Gardner.

The investment boosts Marqeta’s valuation to “nearly $2 billion” and featured the participation of new investors Vitruvian Partners, Spark Capital, Lone Pine Capital, and Geodesic. The company’s existing investors include Visa, ICONIQ, Goldman Sachs, 83North, Granite Ventures, CommerzVentures, and CreditEase.

In a statement, Gardner positioned Marqeta at the center of a worldwide transformation in card issuance. “When today’s innovators are in need of modern payment solutions, they aren’t turning to banks as their primary issuers any more and want a platform built for their needs,” he said. “We’ve been proud to power this transformation as the most advanced card issuing platform built in over two decades.”

With more than 300 employees around the world, Marqeta leverages its platform and open APIs to enable fintechs to build and offer a wide variety of payment-based solutions for customers. The growth in the company’s business has been connected increasingly to the rise of new technology-savvy companies entering the financial services space who seek to offer payment, lending, and other solutions without relying on traditional banks.

“Marqeta is attacking a multi-trillion dollar opportunity in this market,” Gardner said. “This investment puts us in prime position to round out our product vision, bring Marqeta to new geographies, build even more groundbreaking features for our customers and double down on our already aggressive growth trajectory.”

Founded in 2010, Marqeta is based in Oakland, California. With partners including Square, Affirm, and Kabbage, the company has doubled revenues for the past three years and opened a new office in London last fall to kick off its European expansion. TechCrunch reported that Marqeta is considering an initial public offering within the next year and a half.

Marqeta presented Democratizing Issuer Payment Processing with Just-In-Time (JIT) Funding at our developers conference, FinDEVr Silicon Valley 2016. The discussion, led by Marqeta CTO Tony Ford, introduced the company’s open payment APIs, which democratize issuer payment processing by making e-commerce innovators a part of the authorization stream.

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Conversational AI Fintech Clinc Raises $52 Million in Series B

Conversational AI Fintech Clinc Raises $52 Million in Series B
By David Penn Posted on
Categories: Clinc, Funding

In a round featuring participation from Insight Partners, DFJ Growth, Drive Capital, Hyde Park Venture Partners, and other investors, conversational AI innovator Clinc has raised $52 million in new funding. The Series B round brings the Ann Arbor, Michigan-based fintech’s total capital to $60 million.

“We’ve had phenomenal growth and built unbelievable momentum in a very short period of time,” Clinc CEO Jason Mars said. “Now we’re adding more world-class investors to support our growing team as we work to accelerate the pace of innovation and to reshape the conversational AI landscape, one industry at a time.”

Mars, who recently participated in FinovateSpring’s AI Summit Day conversations on AI in financial services, noted that the new investment would help the company add to its team and expand to new, larger offices in Ann Arbor. He also suggested to TechCrunch that this funding, which dwarfs the company’s $6.3 million Series A round from two years ago, could be the firm’s last financing before pursuing an IPO.

Clinc’s technology leverages natural language processing, advanced machine learning, and neural networks to decipher and respond to not just the meaning, but also the context and intent of human speech. In addition to being able to comprehend unstructured speech, the technology’s ability to learn and improve itself with every interaction allows it, for example, to quickly support new languages after being introduced to as few as 500 utterances.

Clinc demonstrated its conversational AI technology at FinovateFall 2016, winning Best of Show honors. Earlier this year, the company proved its technology could be used to provide in-game assistance for gamers, enabling them to communicate with the game using natural language, including slang, without requiring the use of specific commands.

In 2018, Clinc announced that it was expanding its technology to the automotive industry to give developers the ability to add natural language-based interaction and control functionality to vehicles. Also last year, the company teamed up with Turkey’s Isbank to launch the world’s second biggest mobile banking voice assistant.

With customers including USAA, Barclays, S&P Global, OCBC Bank, and US Bank, Clinc was founded in 2015. The company has achieved 300% year-over-year revenue growth, and anticipates tripling its business in 2019. Via its partners, Clinc estimates that more than 30 million people are using its conversational AI technology.

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Minna Technologies Raises $6.3 Million

Minna Technologies Raises $6.3 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Minna Technologies

Subscription management tool for online banks Minna Technologies just announced it has received a $6.3 million (€5.6 million) investment, bringing its total funding to almost $9 million.

Zenith Group led the round, followed by Visa and existing investor Swedbank. Minna will use the funds to increase its presence in Europe. To support these plans, the company will bolster its team and open a new office in Europe.

“This investment round makes it possible for us to scale up and execute on our European expansion plans. As many European banks have started to embrace FinTech partnerships, we have seen a dramatic increase in the interest of our subscription management platform,” said Minna CEO and Cofounder Joakim Sjöblom. “Our current bank partnerships have proved that subscription management is well received by banking customers and that it is an essential part of digital banking.”

Founded in 2014, Minna originally began as a consumer-facing app for subscription management, then launched as a bank-integrated platform in 2016. Since then, the company has helped consumers save more than $33.5 million in unwanted subscriptions. The company is partnered with several top-tier banks across Europe, including Swedbank and Danske bank, and has a pilot agreement with OP bank.

Sjöblom demoed Minna at FinovateEurope 2019 in London. The company is headquartered in Gothenburg, Sweden and has 34 employees. In 2017, the company’s revenues totaled $536,000.

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Fintech OS Raises $1.2 Million

Fintech OS Raises $1.2 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Fintech OS, Funding

Digital transformation expert Fintech OS landed $1.2 million (€1.1 million) in a post-seed investment round this week. The round, which brings the company’s total funding to $3 million (€2.7 million), was led by GapMinder VC. LAUNCHub Ventures, Gecad Ventures, and private investors also contributed.

Fintech OS will use the funds to expand its international presence. “This new investment round allows us to quickly deploy commercial teams in three strategic territories: U.K., Benelux and DACH,” said Teodor Blidăruş, FintechOS CEO. “Meanwhile, we’re going ahead full-throttle to further integrate AI technology within the FintechOS platform, because intelligent processing of massive amounts of data and quick customization of financial instruments are critical components for the whole financial industry.”

Founded in 2014, Fintech OS helps banks launch new technologies by offering them low-code solutions that facilitate fast and inexpensive deployment of new products and services. At FinovateEurope 2018, Blidăruş demoed how the company uses AI to facilitate financial services companies’ digital transformation.

By the end of this year, the company plans to have secured $9 million to $11.2 million (€8 million to €10 million) in Series A funding. Also in 2019, the company anticipates expanding its workforce to 70 employees and plans to see over 4X year-over-year growth in annual recurring revenue from licenses. Additionally, Blidăruş said, Fintech OS will be “announcing a technological revolution” in the third quarter of 2019.

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ClickSWITCH Raises $13 Million in Series B

ClickSWITCH Raises $13 Million in Series B
By David Penn Posted on
Categories: ClickSWITCH, Funding

Minnesota-based ClickSWITCH is having a big month. A week after making its first-ever appearance on the Finovate stage, the account acquisition solution provider has announced raising $13 million in new funding.

The Series B was led by Commerce Ventures and Points72 Ventures, and will help the company accelerate its product roadmap, add to its executive leadership ranks – as well as to its sales and development teams – and contribute toward the firm’s overall growth.

ClickSWITCH CEO Cale Johnston underscored the momentum the company has experienced with clients and prospects since closing its previous, Series A round. “We remain focused on providing the best automated account switching solution available in the market for financial institutions and fintechs,” Johnston said. “We are eager to continue working with Commerce Ventures, Points72 Ventures, and our other tremendous investors to further growth of our customer base and expand our service offerings.”

Founded in 2014, ClickSwitch offers financial institutions a white-label technology that enables customers to easily and quickly switch their direct deposits and recurring payments when opening new accounts. In addition to improving the process for banking customers, the solution makes it easier for FIs to onboard new customers by making new account funding a faster process.

Commerce Ventures Partner Dan Rosen referred to the landscape as a “battle for banking deposits” between banks and fintechs. “ClickSWITCH is a critical utility for onboarding and activating valuable new customers,” he said. Point72 Venture’s Tripp Shriner added that changing direct deposits was one of the “biggest pain points” for banking consumers when it comes to opening a new account. ClickSWITCH, per Shriner, “dramatically reduce(s) friction … increasing choice for customers.”

This latest round of funding puts ClickSWITCH’s total capital at $17.1 million. Earlier this year, the company announced a partnership that would bring its account switching solution to Virginia’s Old Point National Bank. ClickSWITCH demonstrated its technology at FinovateSpring in May. Video of the company’s live demonstration will be available soon.

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masterQueue Closes First Round of Funding

masterQueue Closes First Round of Funding
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Intellaegis

Debt collection solutions company Intellaegis, which does business under the name masterQueue, is marking its first round of funding today. The amount of the investment is undisclosed.

“To this point, we’d been self-funded by the founders and two strategic Angel investors,” said Co-Founder and CFO Perla Lewis. “This allowed us to double staff and increase our year over year Q1 revenue from 2018 to 2019 by eighty percent.”

The company has also brought on Lance Suder, a former entrepreneur and Stanford grad, as its Director of Operations. “As masterQueue makes contacting customers easy, efficient and compliant, I’m proud to join their seasoned team, and we’re excited to have found an investor that shares our vision and passion,” said Suder.

masterQueue’s debt collections tools help recapture delinquent loans by gathering, organizing, and tracking big data from dozens of data aggregators to find customer assets. The resulting workflow facilitates compliant debt collection, skip tracing, and repossession efforts.

Debt collection technology is one of the lesser-heralded sub-sectors of fintech. Perhaps startups are hesitant to enter the space because of its associations with loan sharks. We have, however, seen a handful of successful entrants in the space, including TrueAccord, collectAI, and Global Debt Registry.

Headquartered in California, Intellaegis demonstrated masterQueue’s debt collection workflow at FinovateSpring 2011. John Lewis is president and CEO.

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The ID Co. Lands $2 Million

The ID Co. Lands $2 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, MiiCard, The ID Co.

Bank data expert The ID Co. boosted its funding total to $11 million this week after closing on $2 million (£1.5 million). Headline investors in today’s round are Amadeus Capital Partners and SixThirty.

The company, which already has clients in 30 countries, said the funding will fuel further global growth. CEO James Varga said, “We are hiring fast and entering new markets and geographies across the globe. The recent launch of DirectID Insights and Income Verification means that we are in an excellent place to capitalise on the need for greater efficiency in lending practices to reflect borrowers’ expectations.”

The ID Co. has two main branches, DirectID, its B2B offering, and NoMo, its B2C product launched last fall. DirectID’s product lineup includes Insights, a dashboard that displays data to assist underwriters in lending decisions, and Income Verification, a tool that combines real time data with six algorithms to offer a clear picture of clients’ income. In addition, the company offers an onboarding solution, a categories and classifications engine, and a bank account validation tool.

James Varga, CEO (right), and Lazaro Campos, Chairman

The ID Co. was prepared for the onset of the U.K.’s Open Banking mandate well before it came into play last January. Atul Kamra, Managing Partner of SixThirty said, “James and The ID Co. team have gotten a real nice head start here, and are well positioned to take advantage from the regulatory tail winds afforded by Open Banking.”

Varga added, “The financial world is being fundamentally changed through Open Banking. It improves our understanding of each individual, allowing us to move away from traditional credit reference agencies.” Varga last demonstrated miiCard’s identity as a service capabilities at FinovateFall 2013.

Launched as miiCard in 2011, the company pivoted to The ID Co. in 2016. Within the last year, the company has launched its Open Banking API, released its NoMo consumer cashflow tracking app, and unveiled its Income Verification solution.

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Twisto Closes $15.7 Million Capital Raise

Twisto Closes $15.7 Million Capital Raise
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Twisto

Mobile-first payment innovator Twisto closed a Series B funding round this week totaling $15.7 million (€14 million). The investment brings Twisto’s total funding to $38.7 million (€34.5 million), which is comprised of $23.6 million (€21 million) in equity and $16.8 million (€15 million) in debt.

The round was led by Finch Capital and includes support from existing investors UNIQA Ventures and ING Bank, as well as newcomers Velocity Capital Private Equity and ING Ventures.

The company, which is based in the Czech Republic and Poland, will use the funds to expand further into Europe. Twisto aims to have two million app users in the Central and Eastern European region in the next two years.

Founded in 2013, Twisto offers a simple financing solution to European retail banking customers. The company is best known for its Buy Now, Pay Later tool, which gives consumers an online point of sale financing option, offering instant credit that can be activated in a single click.

The company’s payment card features a favorable exchange rate, is compatible with Apple Pay, and offers 5% more cashback than competitors. The app offers a bill-splitting capability and OCR-powered bill payments that allow customers to pay bills by uploading a photo of the paper statement.

Launched in Prague, Twisto expanded to Poland in the first quarter of last year. Today, the company’s app has been used by more than 500,000 customers. The company’s CEO and Founder Michal Smida demoed the Twisto account at FinovateEurope 2018.

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Payfone Raises $24 Million in Round Led by TransUnion

Payfone Raises $24 Million in Round Led by TransUnion
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Payfone, TransUnion

Digital identity authentication provider Payfone closed a $24 million funding round today. Credit reporting agency TransUnion led the round, while existing investors Synchrony, MassMutual Ventures, and Wellington Management also contributed. The investment brings the New York-based company’s total funding to $117.6 million.

TransUnion’s investment comes in conjunction with a strategic partnership between the two companies, which have been doing business together since 2017. The Chicago-based company will integrate Payfone’s Trust Platform and Trust Score into its IDVision with iovation suite of products.

“Within this new strategic partnership, we anticipate supporting Payfone’s expansion to new markets and looking at other uses of their products throughout our organization,” said Geoff Miller, senior vice president of global fraud and identity solutions at TransUnion. “We are both committed to protecting consumers, focusing on data privacy and building trust with our customers, and the combination of our solutions will create a better, more seamless experience for everyone.” Miller will join Payfone’s Board of Directors.

TransUnion will serve as Payfone’s primary partner for regulated identity verification information. Payfone CEO Rodger Desai said, “With our partnership with TransUnion, we can now leverage TransUnion’s footprint of more than 30 countries to help expand our Trust Score around the globe, allowing billions of additional consumers to safely access digital services.”

Payfone, which was founded in 2008 as a mobile payments company, demoed1-Touch Checkout at FinovateFall 2012. The New York-based company has since pivoted to focus on authentication solutions.

Last year, Payfone authenticated 20 billion transactions for Fortune 500 companies using its zero-knowledge architecture (if you’re unsure what zero-knowledge is, check out Payfone’s blog post on the matter). The company plans to double the number of transactions authenticated this year.

Founded in 1968, TransUnion has office locations at its headquarters in Chicago, as well as in Hong Kong, Mumbai, Toronto, Johannesburg, Colombia, and Brazil. At FinovateFall 2016, TransUnion showcased Prama, a suite of analytics tools that helps lenders gain market intelligence and acts on insights to drive growth and build a risk policy. TransUnion is a public company with a market capitalization of $13.3 billion, trading on the NYSE under the ticker “TRU.”

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Kantox Closes $5.7 Million to Bring More Tech to FX

Kantox Closes $5.7 Million to Bring More Tech to FX
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding, Kantox

Currency and foreign exchange solutions company Kantox boosted its total funding to just over $35 million today after closing a $5.7 million (€5 million) debt financing round.

The investment is the second debt financing deal Kantox has received from Silicon Valley Bank following a round of an undisclosed amount in December of 2017.

Kantox CEO and co-founder Philippe Gelis said that the company has a “very strong” relationship with the bank. He added, “This investment will contribute to our ongoing growth trajectory as we continue to bring more technology to the FX market.”

Founded in 2011, Kantox offers a low-cost way for businesses dealing with a variety of foreign currencies. The tool allows treasury managers to collect, hold, and pay in 29 different currencies.


Kantox also offers a host of other FX tools, including a product to help businesses price their goods dynamically, based on market changes; a service that provides companies with mid-market rates for spots and forwards in over 130 currencies and hundreds of currency pairs; and a suite of FX risk management tools. Dynamic Hedging, one of the risk management tools Kantox launched in 2016, helps companies monitor currency risk in real time.

Gelis demoed Kantox Peer FX at FinovateEurope 2013 in London. The company’s 3,500+ clients have leveraged Kantox’s foreign exchange management solutions to trade $9.7 billion in 143 countries.

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Dashlane Raises $30 Million

Dashlane Raises $30 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Dashlane, Funding

Password management platform Dashlane is bringing home $30 million in debt financing today. The investment brings the company’s total funds raised to just over $100 million.

Hercules Capital joins previous investors FirstMark Capital, Rho Ventures, Bessemer Venture Partners, TransUnion, and Silicon Valley Bank. The funds will help Dashlane build out its platform beyond password management into the broader field of identity management.

Dashlane has been expanding its horizons as of late, having added features such as password breach alerts and monitoring, a VPN option for wifi protection, a Secure Notes feature that helps users encrypt personal data and attachments, and an option that connects users’ closest family members with their account information in case of emergency.

In addition to the funding announcement today, Dashlane unveiled it has added Seth Farbman, former Spotify and Gap CMO, to its board of directors.

Along with its B2C offering, Dashlane also offers solutions that help businesses seamlessly onboard staff with new accounts and has a partner program to allow brands to co-brand Dashlane’s identity manager as a service. Among the company’s partners are Visa, Intel, and yubico.

Since it was founded in 2009, Dashlane has amassed 10 million users from 180 countries across the globe. The company demoed its password manager and keyboard-less ecommerce transaction technology at FinovateEurope 2013.

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