BlackFin Tech weekly — January 29th, 2024
Every Monday, we publish a short digest which sums up last week’s Fintech activity
Greetings FinTech Enthusiasts!
It's Monday again, and that means it's time for your weekly dive into the heart of European fintech. We trust you had a rejuvenating weekend, and now, let's kick off the week with a roundup of the most significant deals and developments shaping the financial technology landscape across the continent.
Ready to stay ahead of the curve? Let's get started!
Last week we saw 12 official fintech deals in Europe for a total amount of 95,6m€ raised with two deals in the UK, two in Italy, two in Denmark one in Germany, one in France, one in Switzerland, one in Luxemburg, one in Netherlands, and one in Spain.
Congratulations to Sygnum, the Swiss Digital assets bank, who has successfully raised €36.6 million in a Series B extension funding round led by group Azimut Holding. Well done also to UK-based Cryptosafe, the Web3 crowdfunding ecosystem, for having secured €18.3m from investors including VentureX Capital and NexTech Ventures. Finally, we want to congratulate Ozone API, the English platform providing technology to banks or account providers (ASPSP) to deliver an API that meets all PSD2 and RTS regulatory requirements, for successfully raising €9.9m from Gresham House Ventures.
Let’s dive in
Singapore and Switzerland-based digital asset banking group Sygnum has announced that it has raised more than $40 million against an initial $35 million target in an interim close of its latest funding round. As of the completion of this interim close, the company’s post-money valuation stands at $900 million, Sygnum said in a statement. According to the statement, global asset management group Azimut Holding is the lead investor for the round and is joined by other new and existing strategic and financial investors. Consistent with prior fundraising rounds, the Strategic Growth Round also saw Sygnum employees participating as personal investors on the same terms. “Sygnumers”, together with the co-founders, board members, and management team continue to hold majority ownership of the company. According to the statement, proceeds from this financing round will be used to expand Sygnum’s geographic reach into new markets and accelerate the development of Sygnum’s fully regulated products such as its bank-to-bank (B2B) platform, which now powers the crypto offering of over 15 banks and financial institutions globally.
CryptoSafe Ltd. closed its latest funding round, securing $20m at a valuation of $95m. The London-based company offers opportunities for investing in promising web3 projects, following successful traders' transactions, participating in blockchain and network development, and enabling clients widespread access to affordable cryptocurrency investments. Backers included VentureX Capital, NexTech Ventures, and Blockchain Innovations Fund. The company intends to use the funds for further growth, innovation, and market expansion. The key areas of focus include: 1. Research and Development: A substantial portion of the funds will be directed toward enhancing CryptoSafe’s technological infrastructure and capabilities. This includes investments in technologies, cybersecurity measures, and software improvements to ensure the platform remains at the forefront of the industry. 2. Market Expansion: CryptoSafe aims to leverage the newly acquired funds to expand its market presence both domestically and internationally. The company will focus on increasing its user base, strengthening partnerships, and exploring new business opportunities. 3. Talent Acquisition: This includes hiring experienced professionals in technology, cybersecurity, marketing, and customer support. Other key areas are “Enhanced Customer Experience” and “Compliance and Security Measures”.
Ozone API the open banking API platform founded by the team that designed open banking in the UK, announced that it has raised a £8.5mn Series A round to fund its continued global expansion. The Series A round was led by Gresham House Ventures, a growth equity investor specializing in scaling high-growth software and technology-enabled businesses. Open Banking has initiatives underway in over 60 markets around the world. Ozone API has developed the leading standards-based open API platform, enabling banks around the world to deliver open APIs that both comply with regulation and drive new revenue streams. The Ozone API platform supports all global standards and is trusted by both banks and regulators around the world to deliver high-performing, standards-compliant, and secure API technology to allow them to thrive in the new world of open finance. Founded in 2017, Ozone API has built significant global momentum, but with an ever-increasing number of markets moving towards open banking implementation, including the US, now is the moment to accelerate international expansion. The company plans to use the investment to build the team and continue to stay ahead of the market, supporting all emerging standards and providing the tools for banks to monetize open APIs. Ozone API is also providing support and infrastructure to power entire markets.
In addition to this week’s fundraising activity, here is the European M&A activity of the week:
EVORA Global, a provider of tech-enabled sustainability solutions to the real asset industry, last week announced its strategic acquisition of Metry, Swedish platform for environmental data collection. The move will establish new standards in data and technological innovation, delivering comprehensive data solutions for the global real estate and infrastructure investment industry. The acquisition signifies an improved level of data automation and quality for EVORA’s clients, achieved through direct connections to fiscal meters and hubs. Metry’s customers will gain access to EVORA’s expertise in setting strategy and implementing net-zero carbon initiatives in their real asset portfolios, broadening the value proposition available to them. This acquisition is an important step forward in Evora’s strategy to equip real estate investors with the tools and data needed to promote sustainable practices in the built environment.
NFP, an international insurance broking and consulting firm, announced its successful acquisition of Advanced Insurance Consultants Limited (AIC), an independent insurance broker based in Hemel Hempstead for an undisclosed amount. As part of the deal, which closed on December 15, the entire AIC team will join NFP. NFP is a leading property and casualty broker, benefits consultant, wealth manager, HR services consultant, and retirement plan advisor that provides solutions through its licensed subsidiaries and affiliates. AIC's specialized expertise includes the agriculture, marine, leisure, vehicle, and construction industries. While predominantly a commercial insurance broker, AIC also provides personal insurance for individuals.
Fasanara, a London-headquartered specialist credit asset manager and technology platform with over $4 billion in total assets, acquired a majority stake in Pollen VC, a leading provider of non-dilutive working capital to the mobile gaming/app sector. Pollen VC provides revolving credit facilities to mobile app and game developers based on their receivables to help them scale, without relying on dilutive VC capital to fund their marketing spend. Pollen VC will operate as an independent digital platform within the Fasanara Group, enabling it to deploy capital into larger, more structured deals, alongside its core business of helping smaller studios scale in a capital-efficient way.
And finally, here are the news that caught our eye last week:
Société Générale, under the leadership of CEO Slawomir Krupa, has initiated a strategic review leading to the decision to divest its neobank Shine, acquired in 2020, as it no longer aligns with the bank's new ambitions. Despite Shine's success in serving over 150,000 clients with innovative services for entrepreneurs, Société Générale seeks to focus on activities more in line with its strategic vision, reflecting broader challenges in the banking sector marked by increasing competition and technological advancements. This move mirrors a trend seen with other banks like La Banque Postale and Orange Bank, indicating a shift in traditional banks' strategies to adapt to a rapidly evolving financial landscape.
Under CEO Alex Chriss's leadership, PayPal is unveiling a suite of AI-driven products to enhance its competitive position in the payments industry, aiming to revitalize its offerings amidst investor concerns over declining stock performance. Despite a 3.7% stock drop following the innovation event, the company is doubling down on technology like biometric authentication and a revamped app to address market challenges. Chriss's appointment from Intuit signifies a strategic shift to address performance issues, with investors cautiously optimistic about his ability to drive growth and restore confidence in PayPal's financial trajectory.
BNP Paribas Personal Finance has announced a collaboration with SuperTech and STEAMhouse to launch the Innovation Lab, targeting contemporary challenges in the UK's financial services sector, particularly data utilization and innovation. This initiative focuses on leveraging external data to enhance customer engagement and trust, inviting entrepreneurs and digital tech SMEs to participate and collaborate with BNP Paribas Personal Finance. The program offers access to insights, comprehensive support, and a platform to showcase solutions during BNP Paribas’ Innovation Week in May 2024, aiming to accelerate the development of innovative ideas and drive economic opportunities in the fintech sector.
Crédit Agricole has acquired a 7% stake in payments group Worldline as part of a strategic partnership, aiming to establish a joint venture in merchant payments. This collaboration, building on a previous agreement, is set to create a significant presence in payment services for merchants in France by combining Worldline's technological expertise with Crédit Agricole's distribution networks. While this move doesn't significantly alter Worldline's current standing, it does signal increased complexity in meeting stakeholders' demands. Crédit Agricole's investment positions it as a top three shareholder in Worldline, aligning with its commitment to support Worldline's growth and European market leadership in payments.
Have a great week & see you soon!