Avast to Acquire Identity and Authentication Expert SecureKey Technologies

Avast to Acquire Identity and Authentication Expert SecureKey Technologies
  • Avast will acquire SecureKey Technologies in a deal expected to close next month.
  • Czech Republic-based Avast will leverage SecureKey’s North American presence to expand internationally.
  • Financial terms of the deal were not disclosed.

SecureKey Technologies will soon begin its next chapter. The Canada-based digital identity and authentication company recently agreed to be acquired by NortonLifeLock’s Avast, a digital security and privacy firm. Financial terms of the deal are undisclosed.

Avast CEO Ondrej Vlcek said that he envisions leveraging SecureKey to create a global and reusable identity framework. “It’s clear that digital identity is the critical enabler for many digital services and SecureKey’s success reflects the growing demand for this from consumers,” said Vlcek. “SecureKey is highly complementary to Avast’s prior work in Identity and together we will take our offer to the next level, accelerating innovation and working to establish a user-focused, global approach that aligns user, business, and government propositions. We are committed to developing offerings that will be fully inclusive for everyone, regardless of their own circumstances.”

SecureKey was founded in 2008 with a mission to simplify consumer access to secure online services and applications using secure, digital versions of the credentials they already have. The company’s digital identity solutions enable over 200 million secure digital ID transactions per year globally.

SecureKey’s flagship tool, Verified.Me, is a digital identity verification network that helps users verify their digital identity and places them in control of what they want to share with whom. Verified.Me, which also comes with a Government sign-in feature, is provided by Interac, which acquired the rights to SecureKey’s digital ID services for Canada last October.

Avast was founded in 1988 and offers tools to help individuals and businesses protect the privacy of their digital lives. Headquartered in the Czech Republic, the company anticipates the acquisition will position it for international expansion. “As the European community is investing in public-private sector digital identity infrastructure in 2022 and beyond, we see Avast well positioned as a collaborative provider of digital trust services for people, digital businesses and government,” said Avast General Manager and SVP of Identity Charles Walton. “Success for us is where digital identity becomes simple, user-centric and portable, and can enable a more trustworthy digital experience and deeper online engagement benefiting both people and business.”

The deal is expected to close early next month. Avast plans to make SecureKey’s products available in the second quarter of this year.

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MeridianLink Acquires Small Business Lending Startup StreetShares

MeridianLink Acquires Small Business Lending Startup StreetShares
  • Cloud-based software solutions provider MeridianLink acquired digital lending technology provider StreetShares.
  • MeridianLink will leverage StreetShares’ Atlas Platform, an embeddable digital lending environment for banks.
  • Terms of the deal were not disclosed.

Cloud-based software solutions firm MeridanLink acquired small business lending technology provider StreetShares this week. Terms of the deal were not disclosed.

StreetShares was founded in 2014 to serve as an alternative lending option for military veteran-owned small businesses. In 2019, the Virginia-based company pivoted, launching digital small business lending technology for banks and credit unions after piloting the offering with USAA in 2018.

The new tool, the Atlas Platform, enables banks to embed a digital business lending environment in 45 days or less. The platform enables community lenders to leverage their data to deliver a digital banking product experience to their small business customers. StreetShares built the platform specifically to serve the unique needs of small businesses and assist lenders with challenges such as underwriting.

“StreetShares’ commitment to providing lenders across the U.S. with state-of-the-art business lending capabilities, including business loans, automated decisioning, and business lines of credit, aligns with our focus on empowering more banks and credit unions to better serve consumers and communities,” said MeridianLink CEO Nicolaas Vlok. “Adding the StreetShares team, technology, and strong partnerships with organizations like Fiserv to the MeridianLink family will accelerate our small business lending capabilities and further strengthen our MeridianLink One platform.”

MeridianLink, which is owned by private equity firm Thoma Bravo, was founded in 1998 and offers cloud-based technology to its 1,900 financial institution clients. Nicolaas Vlock is CEO of the firm, which is listed publicly on the New York Stock Exchange under the ticker MLNK and has a market capitalization of $1.47 billion.

PayTech Company Shift4 Makes Two Acquisitions

PayTech Company Shift4 Makes Two Acquisitions
  • Shift4 acquired Finaro and The Giving Block.
  • The company will leverage the two purchases to fuel global expansion and to deepen its cryptocurrency roots.
  • Shift4 expects the acquisitions will contribute $15 billion in payment volume in 2023.

Payments processing technology company Shift4 made two key acquisitions this week. The Pennsylvania-based firm snapped up cross-border ecommerce expert Finaro and cryptocurrency fundraising startup The Giving Block. Terms of the deals were not disclosed.

Shift4 said the move will position it to pursue growth in eCommerce, gaming, stadiums, restaurants, hospitality, specialty retail, charitable giving, and a new frontier– cryptocurrency enablement. The company expects the acquisitions will contribute $15 billion in payment volume in 2023.

“These two acquisitions… underscore our aggressive efforts to deliver a unified commerce experience across the world,” said Shift4 CEO Jared Isaacman. He also noted that the move gives the company “a real right-to-win additional customers across the nonprofit vertical. It also represents an exciting and responsible step towards further embracing cryptocurrencies and blockchain technology.”  

Malta-based Finaro was founded in 2007 as Credorax. The company is a global cross-border payments provider with four offices across the world. Finaro serves more than 5,000 merchant clients, 98% of which leverage Finaro for ecommerce capabilities. The company has a diverse team; its 370 employees represent 24 nationalities and speak 12 different languages. Shift4 will leverage Finaro to expand its existing services, notably its next-generation SkyTab POS solution, Shift4Shop eCommerce platform, and VenueNext stadium offering. 

The Giving Block was founded in 2018 with a mission to make Bitcoin and other cryptocurrency fundraising easy for nonprofits. The company, which is part of a recent rise in charitable giving-enablement, serves as a donation platform more than 1,300 non-profits ranging from mission-driven organizations, charities, universities, and faith-based organizations. The Giving Block is not just a transaction platform; the company also helps non-profits build community, raise awareness, and create campaigns to support their cause.

Shift4 will invest in The Giving Block’s existing business while combining crypto donation capabilities with traditional card acceptance and pursuing the non-profit market. Notably, Shift4 will tap The Giving Block’s crypto talent to establish a Crypto Innovation Center and integrate crypto acceptance and settlement capabilities across its own existing verticals.

Shift4 was founded in 1994 and is publicly listed on the New York Stock Exchange under the ticker FOUR. The company’s market capitalization is $3.69 billion.

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BNPL Consolidates: Zip to Buy Sezzle

BNPL Consolidates: Zip to Buy Sezzle
  • Consolidation in the Buy now, pay later (BNPL) industry continues as Zip agrees to acquire competitor Sezzle.
  • The deal values Sezzle at $355 million.
  • After the acquisition is finalized, Sezzle will rebrand to Zip and the company’s CEO Charlie Youakim will lead Zip’s U.S. business.

Buy now, pay later (BNPL) player Zip (formerly known as Quadpay) is acquiring Sezzle in a deal that values Sezzle at $355 million.

Zip CEO and co-founder Larry Diamond expects the deal will help Zip scale up its operations. “Combining with Sezzle positions us as a leading global BNPL provider and prioritizes our ability to win in the important U.S. market.”

Following the deal, Zip’s customer base will increase from 9.9 million to 13.3 million and the number of merchant partners will grow from 82,000 to 129,000. Additionally, The Financial Review estimates that Zip’s total transaction volume will rise from $8 billion to $10.4 billion, and that almost $6.5 billion of this will be from U.S. users.

After the deal closes, Sezzle will rebrand as Zip and the company’s CEO Charlie Youakim will lead Zip’s U.S. business. “I believe the transaction will position us to win in the U.S. and globally,” Youakim said.

Today’s announcement is yet another indication of consolidation in the increasingly-crowded BNPL space. Industry giant Afterpay sold to Block (formerly Square) on February 2nd. And on February 17th, digital payments firm Latitude agreed to acquire Humm’s BNPL operations.

Australia-based Zip was founded in 2013, seven years before BNPL took off as an alternative payment method. Zip is publicly traded on the Australian Stock Exchange (ASK) under the ticker ZIP. The company allows users to split their purchase into four installments over the course of six weeks. With Zip’s app, shoppers use their Zip Virtual Card to pay for their purchase in installments anywhere that Visa is accepted, both online and in-store.

Similarly, Sezzle allows shoppers to use their Sezzle Virtual Card to pay for purchases in four installments over the course of six weeks. The company also offers a long-term financing tool in partnership with Ally and Sezzle Up, an alternative credit solution that helps shoppers build their credit.

Minnesota-based Sezzle was founded in 2016 and went public on the ASK in 2019 under the ticker SZL. At the time, Sezzle said it opted to list on the ASX instead of in U.S. markets because, prior to 2020, the BNPL model was more commonplace in Australia, given that Afterpay, a major player in the BNPL arena, is headquartered in Melbourne.

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Revolut’s Newest Acquisition Accelerates its Move into India

Revolut’s Newest Acquisition Accelerates its Move into India
  • Revolut has acquired India-based Arvog Forex. Terms of the deal were not disclosed.
  • The purchase will help Revolut launch services in India in the latter half of this year.
  • Arvog Forex has more than 20 branches across India and served more than 15,000 customers last year.

Global financial services innovator Revolut recently acquired Arvog Forex to deepen its roots into India, a region with a population of 1.3 billion and ripe for fintech disruption.

Arvog Forex, an international money transfer and currency exchange company, is headquartered in Mumbai. With more than 20 branches across India, the company served over 15,000 people with its remittances and other forex services last year.

Revolut, which plans to invest $25 million into the Indian market in the coming years, expects the purchase will strengthen its foundation in India. The company initiated its India expansion plans last April after hiring Paroma Chatterjee, a former Flipkart executive, to lead its India operations. Under Chatterjee’s leadership, Revolut plans to launch bespoke financial products that serve the unique needs of Indian consumers.

The company is aiming to launch services in India in the latter half of this year. The Arvog Forex acquisition should streamline this, helping Revolut offer remittances and multi-currency accounts to Indian customers.

Chatterjee calls the buy a “first step” towards the company’s aspiration to usher in a “digital financial revolution” in India. “Our significant investment plans, this acquisition, and the quality of the team we are putting together reflect our intention to rapidly roll out these innovative products and services. India is a key region in our global expansion plan and this acquisition is testament to the rapid strides we want to make here. It is an incredible time to be a fintech company in India and we plan to make the best of this opportunity,” she said.

U.K.-based Revolut was founded in 2015 and has already expanded into other Asia-based countries, including Japan and Singapore, but has yet to enter into China, a market that will prove to be highly competitive. On the other side of the globe in North America, Revolut has applied for a bank charter in the U.S., but withdrew its operations in Canada last March. The fintech plans to reenter the region later this year.

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Madison Dearborn Buys MoneyGram in $1.8 Billion Deal

Madison Dearborn Buys MoneyGram in $1.8 Billion Deal
  • Madison Dearborn Partners has agreed to acquire MoneyGram in a $1.8 billion deal.
  • The deal will offer shareholders $11 per share and will make MoneyGram a privately-held company.
  • MoneyGram anticipates the acquisition will help it advance digital growth and compete against smaller fintechs.

MoneyGram, an 82-year-old fintech, announced today it has agreed to be acquired by private equity investment firm Madison Dearborn Partners (MDP) in a $1.8 billion deal. The transaction is expected to close in the fourth quarter of this year.

When the deal closes, MoneyGram shareholders will receive $11 per share. In addition, MoneyGram, which is currently listed publicly on the NASDAQ under the ticker MGI, will no longer be listed on a public exchange. Logistically, MoneyGram will continue to operate under its own brand. Company CEO Alex Holmes and the existing leadership team will continue to lead MoneyGram from the company’s headquarters in Dallas, Texas to continue to serve its 150 million customers.

Holmes anticipates the deal will not only deliver value to shareholders, but will also help MoneyGram as it seeks to advance its digital growth. “MoneyGram has undergone a rapid transformation over the last several years to expand our digital capabilities and adapt to the evolving needs of our customers. By partnering with MDP and becoming a private company, we will have greater opportunities to innovate and transform MoneyGram to lead the industry in cross-border payment technology and deliver a more expansive set of digital offerings, while leveraging our global platform for new customers and use cases.”

The move will place MoneyGram in a better position to compete with the onslaught of fintechs in the cross-border payments arena. And in today’s increasingly decentralized economy, this competition goes beyond cross-border payments companies of the last decade such as Azimo, Wise, Visa’s CurrencyCloud, and Payoneer. Looking ahead, MoneyGram will need to deepen its crypto roots.

The Dallas-based company dipped its toe in the crypto waters in 2018 when it initiated a partnership with Ripple to leverage xRapid for remittance payments. And last fall, MoneyGram began collaborating with Stellar to enable consumers using Circle’s USDC stablecoin to receive cash funding and payout in local currency.

“We are looking forward to applying our substantial experience growing digital businesses and deep payments knowledge to help MoneyGram further strengthen its market-leading cross-border capabilities and enhance its digital platform,” said MDP’s Managing Director Vahe Dombalagian.

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Trulioo Acquires Client Onboarding Tool Provider HelloFlow

Trulioo Acquires Client Onboarding Tool Provider HelloFlow
  • Trulioo has acquired HelloFlow, a digital onboarding startup. Financial terms of the deal were not disclosed.
  • HelloFlow’s no-code, drag-and-drop tools “vastly simplify” the onboarding process and will offer efficiencies to Trulioo’s GlobalGateway customers.
  • Trulioo will leverage Denmark-based HelloFlow to help expand its global footprint, specifically in Europe. The company plans to double the size of its team by the end of the year.

Trulioo is making an acquisition today that will boost the digital onboarding aspect of its global identity platform. The company announced it has acquired HelloFlow, a startup that enables businesses to build client onboarding, monitoring, and digital workflow solutions using a no-code, drag-and-drop interface. Financial terms of the deal were not disclosed.

HelloFlow was founded in 2020 by Mikkel Skarnager and Ciprian Florescu who set out to disrupt the onboarding process by creating a digital solution with low barriers to digitalization. They came up with a no-code solution that minimizes coding and developer costs. The Denmark-based company has raised $3.3 million.

“We set out to build a platform that businesses could leverage for digital onboarding regardless of company size, resources, market, or jurisdiction,” said Skarnager. “We’re thrilled to be joining Trulioo and continue the journey of digital innovation and inclusion.”

The purchase combines Trulioo’s GlobalGateway data and identity services network built to verify the identity of both business and individuals with HelloFlow’s suite of orchestration, onboarding workflow, and risk management capabilities. By integrating HelloFlow’s technology, Trulioo will offer a single platform that combines Trulioo’s eIDV, KYB and DocV capabilities with the orchestration solution from HelloFlow. According to the press release, HelloFlow will “vastly simplify” the onboarding process, which will offer efficiencies for Trulioo customers.

“Establishing and securing trust online is a foundational step for all digital activity,” said Trulioo President and CEO Steve Munford. “Our ability to verify both businesses and individuals globally combined with HelloFlow’s advanced orchestration delivers unmatched capabilities and helps us accelerate an end-to-end identity platform that meets the evolving needs of our customers.”

Throughout 2022, the company plans to expand its global footprint. As part of this strategy, Trulioo will leverage HelloFlow’s current locations and operations to support its European expansion. By the end of this year, Trulioo anticipates it will have doubled the size of its team.

This purchase is Trulioo’s second acquisition since it was founded in 2011. Last June, the company raised $394 million in funding, boosting its total funding to almost $475 million and increasing its valuation to $1.75 billion.

For a look at the newest technology coming out of Trulioo, check out the company’s live demo at FinovateEurope next month. Trulioo is a Platinum sponsor of the event, which is taking place in person this year on March 22 and 23 at the Intercontinental O2 in London. Book your ticket today to save.

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Fiserv Agrees to Acquire Finxact in Deal Valued at $650 Million

Fiserv Agrees to Acquire Finxact in Deal Valued at $650 Million
  • Fiserv has agreed to acquire Finxact in a transaction valued at $650 million.
  • The acquisition will help bolster Fiserv’s position as “partner of choice” for firms looking to add to their digital banking offerings.
  • First Data Ventures, the corporate arm of 2019 Fiserv acquisition First Data, was an early investor in Finxact.

Leading fintech and payments company Fiserv announced today that it has agreed to acquire cloud native banking solution provider Finxact. An early investor in the company, Fiserv will purchase the remaining ownership interest in Finxact for $650 million, and will leverage the acquisition to add to Fiserv’s account processing, digital, and payments solutions.

“Through this combination, Fiserv will create a streamlined path for clients to offer digital solutions to their customers,” Fiserv President and CEO Frank Bisignano said. “Finxact also enhances our ability to support a growing number of financial institutions and business clients.”

Jacksonville, Florida-based Finxact offers a core-as-a-service platform that enables financial institutions to innovate and bring new solutions to market without requiring a complete technological overhaul of existing systems. Finxact leverages open banking APIs and the cloud to help firms future-proof and add flexibility to their businesses by abstracting the critical components of core banking from other operations and services – such as mobile banking, communications, and statements. The company’s partners range from financial institutions like Live Oak Bank ($8.2 billion in assets) and Iberiabank’s Virtual Bank to fintechs like Personetics and Anchorage Digital.

Calling the acquisition a “tremendous opportunity” for his six-year old company, Finxact Chairman and CEO Frank Sanchez said, “We recognize that Finxact’s technology can serve to level up the industry’s delivery infrastructure, and crucially at a time when banking is undergoing transformative change. We will be better positioned to serve a far greater number of institutions, of all sizes, when combined with the breadth and depth of Fiserv capabilities.”

Finxact was founded in 2016 and has raised $42 million in funding. The company ended 2021 with the introduction of its no-code visual Product Launchpad, a platform enhancement that brings a visual design experience to the creation and deployment of products on the Finxact core.

The acquisition of Finxact is only the latest fintech deal by Fiserv since its big, $22 billion purchase of First Data Corporation in 2019. Last fall, Fiserv announced the completion of its acquisition of marketing and commerce platform BentoBox. The year before, Fiserv acquired digital card services platform Ondot. Other recent acquisitions include its pick-up of Bypass Mobile in 2020 and NetPay in 2021. The company’s most recent Finovate appearance was at FinovateWest 2020, an all-digital event in which Fiserv demoed its Virtual Banking Assistant. The technology brings AI-driven, conversational experiences to call center operations, boosting customer engagement and reducing costs.

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BNPL Player Amount Acquires Linear Financial Technologies

BNPL Player Amount Acquires Linear Financial Technologies

Modern banking experiences provider Amount has acquired SMB loan and account origination platform Linear Financial Technologies for $175 million.

Founded last February, Linear offers financial services organizations a set of tools to help create a smooth customer experience. The Virginia-based startup provides a digital originations and servicing platform for credit cards, loans, and deposit accounts to help companies optimize the experience for their customers. Linear’s clients include Citizens Bank, PNC Bank, Fifth Third Bank, Bank of the West, and American Express.

Amount, a three-year-old company based in Illinois, helps financial services companies digitize their infrastructure to keep up with the rapid pace of technological change. The company’s modular approach offers firms their choice of embedded finance tools, including omni-channel account opening, credit cards, loans deposits, buy now pay later (BNPL), and more.

“In Linear, we saw an opportunity to pair Amount’s consumer banking solution and buy now, pay later technology with Linear’s small business banking solutions to help financial institutions simplify and streamline business processes to create new business opportunities and increase value for our clients,” said Amount CEO Adam Hughes. “We admire what Sam and his team have built at Linear, especially as we share many of the same values when it comes to developing technology, with a heavy focus on bringing data and insights to the forefront, to improve customer experiences, business processes, and risk management. I’m excited to welcome the Linear team to Amount and look forward to working beside them to expand Amount’s product set.”

After the deal is finalized, Linear will rebrand and operate as Amount Small Business. Linear CEO Sam Graziano will join Amount’s executive team and become Head of Amount Small Business. Combining the two companies will boost Amount’s employees to almost 600. The firm will maintain offices in New York City, New York; Reston, Virginia; Chicago, Illinois; and Los Angeles, California. 

Today’s announcement comes four months after Amount partnered with Marqeta to help banks enter the BNPL space. The company, whose bank clients collectively manage just over $3.1 trillion in assets and serve more than 50 million U.S. customers, was valued at over $1 billion after a $100 million Series D funding round last May.

The BNPL space flooded with new players last year. This influx of new companies, plus the pressure from incumbent financial services firms such as Goldman Sachs offering BNPL solutions, has made competition in the credit card alternative space hotter than ever. Today’s merger will offer Amount a better competitive advantage against established BNPL players such as Klarna, AfterPay, Affirm, and Sezzle. As the BNPL market begins to mature, we can expect to see much more merger and acquisition activity in 2022.

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Wealthfront Agrees to Acquisition by UBS

Wealthfront Agrees to Acquisition by UBS

In one of the first big fintech acquisitions of the year, Wealthfront has agreed to be acquired by global investment bank and financial services company UBS. Valued at $1.4 billion, the all-cash deal represents a premium of at least 2x on Wealthfront’s most recent private market valuations, and underscores UBS’s determination to attract younger, high net worth American investors.

In a blog post at the Wealthfront website, company CEO David Fortunato called the acquisition a “strategic partnership” that will enable Wealthfront to offer new services and give its customers access to “UBS’s industry-leading investing insights and research.” Fortunato praised UBS’s new CEO Ralph Hamers, who was appointed to the top spot in the fall of 2020, as a “digital native” who has put the digitization of the Swiss-based multinational firm at the top of his agenda. Fortunato noted that Wealthfront will continue to operate as a standalone business under its own brand after the acquisition.

“Rest assured that nothing will change with your account or the cost of our service,” Fortunato wrote to the company’s customers. “We will continue delivering great products and features to you, now at a much faster pace. And you’ll get access to even more research and insights that can empower you as an investor.”

Founded in 2008 – and making its Finovate debut as kaChing a year later – Wealthfront has grown into a leading online automated investing platform with $27 billion under management and more than 470,000 clients in the U.S. Earlier this month, the company announced a trio of updates to its Smart Beta service, a feature of the company’s U.S. Direct Indexing offering that helps investors optimize their allocations to individual stocks. Last fall, Wealthfront unveiled its Socially Responsible Portfolio, which leverages Modern Portfolio Theory to give investors the ability to put their money where their values are while still earning returns comparable to those available in its Classic Portfolio.

“Adding Wealthfront’s capabilities and client base to our global investment ecosystem will significantly boost our ability to grow our business in the U.S.” UBS’s Hamers said in a statement. “Wealthfront compliments our core business in the U.S. providing wealth management to high net worth and ultra high net worth investors through trusted relationships with financial advisors, and will enhance our long-term ambition to deliver a scalable, digital-led wealth management solution to affluent investors.”

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Plaid Acquires Cognito

Plaid Acquires Cognito

Open finance network Plaid is snapping up identity verification and compliance platform Cognito in a deal valued around $250 million.

Plaid’s “next major step” as a company is to help developers build onboarding experiences. And because identity is a huge piece in the onboarding process, Cognito’s technology will be key in the launch of the new tool. “This means simplifying every step of the consumer journey from their first interaction during signup, to the first magical moment delivered by that product – the first time sending money to a friend, or the first time trading a stock or cryptocurrency,” Plaid CEO Zach Perret said in a blog post.

Perret cited identity verification, account connection, and account funding as three parts of a complete onboarding experience. Currently, Plaid’s technology takes care of the latter two pieces but is missing identity verification technology. According to TechCrunch, Cognito’s technology will be available to Plaid’s 5,500 clients as an optional add-on. Plaid’s services range from a free option to a package that costs north of $500 per month.

Cognito’s technology verifies user identity by connecting their phone number with their traditional identity data such as name, date of birth, address, and social security number. The California-based company also helps businesses stay compliant by managing and automating their anti-money laundering and politically exposed person screening. Since it was founded in 2014, Cognito has verified 76 million users for 300 clients including Affirm, Brex, and Current.

Today’s news is another signal of expansion for Plaid, which partnered with Dwolla, Square, Checkout.com, Currencycloud, and Marqeta last October to move into account-to-account payments.

With $734 million in funding, Plaid helps 11,000+ FIs offer their customers access to third party financial services via a suite of APIs to connect consumers, financial institutions, and developers. Plaid also offers a suite of analytics products that provides further insights into transactions. The company was founded in 2013 and is headquartered in San Francisco, California.

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Canada’s FundThrough to Acquire Invoice Factoring Business from BlueVine

Canada’s FundThrough to Acquire Invoice Factoring Business from BlueVine

BlueVine, an SME financing company that made its Finovate debut in 2014, announced this week that it is selling its invoice factoring business to Toronto, Canada-based FundThrough.

FundThrough noted that the deal is designed to accelerate both its commitment to embedded finance as well as fuel expansion plans for the U.S. market. Specifically, FundThrough believes the acquisition of its American rival will enable it to increase its U.S. clientele by 2x, boosting the number of customers in the States who use its technology to turn unpaid invoices into access to working capital.

“We are committed to helping small businesses grow and thrive – especially those who sell to large customers where long payment terms and a lack of financing options stand in the way of growing a business,” FundThrough co-founder and CEO Steven Uster said. “BlueVine was one of our biggest competitors in the U.S. market, and through this acquisition we can fulfill our mission on a much larger scale.”

With growth of more than 10x since its founding in 2014 and 3x growth over the past year, FundThrough has scaled to process more than $120 million in funding each month. The company’s AI-powered funding platform, along with its partnerships with companies like Intuit and Enverus, has enabled it to cut the standard amount of time it takes for SMEs to get their invoices paid by as much as 97%.

Invoice factoring was BlueVine’s founding business – and the centerpiece of the company’s 2014 Finovate presentation. The company has grown significantly since then, adding a range of new financing solutions for small businesses and giving the Redwood City, California-based fintech the ability to choose which area of small business financing it will focus on going forward.

“Since launching BlueVine, we’ve been focused on the financial needs of small businesses and are very proud of what we’ve been able to accomplish,” BlueVine co-founder and CEO Eyal Lifshitz said. “As we evolve our products and services, we continuously examine how we can better serve our customers at scale. We determined that FundThrough is perfectly positioned to serve our factoring clients with the care and individual attention they need and deserve. Our factoring clients will be in great hands with FundThrough.”

As part of the acquisition, BlueVine’s invoice funding division employees will join the FundThrough team. The transaction will enable BlueVine to focus on other elements of its business including its BlueVine Business Checking, Payments, and Line of Credit offerings. Since inception in 2014, the Redwood City, California-based fintech has helped SMEs access more than $14 billion in financing.

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