Welcome to TechCrunch Fintech! This week, we look at Revolut’s announced valuation hike, fintech unicorns, the Disrupt Fintech scene, and more.
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The big story
Revolut reportedly informed its staff last week of its intention to sell up to $500 million of existing shares at a valuation of $45 billion, according to the Financial Times. This is notable because, if true, it would make the banking giant the most valuable startup in Europe. The valuation also marks a significant jump compared to the 33 billion dollars Revolut was valued at 2021. As the FT noted, the company is “one of the few fintechs to have increased its valuation since a venture capital downturn hit the sector over the past two years.” At the end of July, Revolut was obtained a banking license from the Prudential Regulatory Authority (PRA) in the United Kingdom — a significant milestone for the London-based fintech company, especially as it attempted to obtain this license since 2021.
Analysis of the week
So far this year, 38 unicorns were hit in the United States throughout 2024, according to an analysis by TC’s Dominic-Madori Davis. Among these 38, three worked in the fintech field:
Altruistic – $1.5 billion: This fintech startup, which provides investment management for registered independent investment advisors, was founded in 2018. It raised a $169 million Series E in May, led by ICONIQ Growth, valuing the company at $1.5 billion.
Aven – $1 billion: Aven, founded in 2019, is a consumer credit card company. It reached a valuation of $1 billion after closing a $142 million, Series D led by Khosla Ventures and General Catalyst, according to CB Insights.
Octane – $1.1 billion: A company which offers instant financing on mowers and recreational vehicles, Octane raised $50 million in April, giving a post-money valuation of $1.11 billion.
Dollars and cents
A new form of alternative investment: Shares Fran is a Chicago-based startup that wants to offer investors another form of passive income: the ability to invest in franchises for as little as $500. The company has raised $4.2 million in seed funding led by Chicago Businesses to develop its business.
We covered the US-based insurtech startup Faye since 2022, first with its round of seeds and then with his Series A cycle in 2023. It appears they are continuing the momentum, announcing last week $31 million in Series B funding. What keeps this online insurance company thriving? Well, it seems to be the way it combines travel insurance, support when you’re away from home and a range of financial solutions, rolled into one comprehensive smartphone app. You could say that in the same way that Lemonade managed to reach a millennial with a sexier insurance platform, Faye has plowed a similar field.
What else do we write
Scoop: Alex Cook, partner at World Tiger who oversaw some of its biggest investments in fintech and deals in India, is leave the company after a tenure of nearly seven years, three people familiar with the matter told TechCrunch. Cook informed several people around him of the news of his departure over the past week, although he did not explain why he was leaving.
THE serious and long-term negative impact of the bankruptcy of fintech Banking-as-a-Service (BaaS) Synapse will be important “across fintech, particularly consumer-facing services,” one observer said. Following the collapse of this company, other startups in the industry are working hard to prove that not all BaaS companies are created equal. The fintech partners – Itai Damti, CEO and co-founder of the unit, Peter Hazlehurst, CEO and co-founder of Synctera, and Sheetal Parikh, general counsel and head of compliance at Treasury Prime – are working overtime to ensure that their businesses operate in a compliant manner. The trio goes join us on stage has TechCrunch disrupts 2024 to discuss the challenges facing the industry and how their offerings are built to protect the customers served by their fintech clients.
Very interesting titles
Evolve Hires Former Fmr Synapse Compliance Officer to Help With Reconnaissance Efforts, Sources Say
Insurance comparator The Zebra buys Marble
Bilt Rewards raises valuation to $3.25 billion with new investments of $150 milliont (TC covered Bilt’s latest relaunch here.)
MUFG buys stake in Philippine fintech GCash for $393 million
Brazilian debt marketplace Monkey Exchange raises $11 million
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