BlackFin Tech Weekly — June 3rd, 2024
Every Monday, we publish a short digest which sums up last week’s Fintech activity.
Hello FinTech Friends,
Welcome back to our newsletter! Last week, we have seen several rounds with large financing amounts. Furthermore, we also have some more in-depth news about sustainability-related Fintechs for you, so read on to catch up on the latest developments in the European Fintech scene!
Last week we saw 10 official fintech deals in Europe for a total amount of €243m raised with 4 deals in the UK, 2 deals in Sweden, 1 deal in France, 1 deal in Switzerland, 1 deal in Denmark, and 1 deal in Spain.
Congratulations to Cloover, the Berlin-based embedded financial services provider for renewable energy, who has raised €105 million in a seed round led by Lowercarbon Capital, with participation from 9900 Capital and QED. Applause also goes out to FintechOS, the UK end-to-end financial product management platform, for extending its Series B in a €55.4 million round led by Molten Ventures, Cipio Partners, and BlackRock, with participation from EarlyBird VC, OTB VC, and Gapminder VC. Lastly, we extend our congratulations to Doconomy, the Swedish climate fintech startup, which has raised €34 million in a Series B round, co-led by the venture arms of UBS and CommerzBank.
Let’s dive in
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Cloover, a Berlin-based startup developing an operating system for the renewable energy industry, has raised €105 million in a seed round led by Lowercarbon Capital, with participation from 9900 Capital and QED. The platform connects installers, prosumers, manufacturers, energy providers, and investors to streamline the energy transition process, offering solutions for managing sales, payments, financing, material procurement, and energy production and consumption. The funds will be used to enhance Cloover’s installer software development and bolster its sales, payments, and financing offerings, enabling small and medium-sized installers to compete with larger players and accelerating the adoption of renewable energy across Europe. Cloover also plans to extend financing to households and unlock working capital for partners to expedite renewable deployments.
FintechOS, a UK end-to-end financial product management platform, has secured €55.4 million in a Series B+ round led by Molten Ventures, Cipio Partners, and BlackRock, with participation from EarlyBird VC, OTB VC, and Gapminder VC. FintechOS revolutionizes the financial services industry by enabling core modernization and driving innovation in banking, lending, and insurance technology, providing financial institutions with tools to deliver superior customer experiences. The funds will be used to enhance FintechOS’s solutions, drive growth and innovation, and support global expansion efforts. This investment will also help the company achieve its goal of breaking even by 2024 while continuing to onboard key customers and maintain its leadership position in the industry.
Swedish climate fintech startup Doconomy has raised €34 million ($36.9 million) in a Series B round co-led by the venture arms of UBS and CommerzBank. Founded in 2018, Doconomy partners with over 100 financial institutions worldwide, helping their clients measure the CO2 footprint of their transactions. The company plans to use the funds to expand into North America and roll out new products, broadening its impact and reach to enable more financial institutions and their clients to measure and manage their environmental impact effectively.
In addition to this week’s fundraising activity, here is the European M&A activity of the week:
Tennaxia has announced the acquisition of Traace. Tennaxia was founded in 2001 and provides software for tracking extra-financial performance data and company metrics. Additionally, Tennaxia offers consulting services to its clients for software solutions. In 2023, Tennaxia was acquired by Marlin Equity Partners, a private equity fund, which has around $9bn under management and has completed 250 acquisitions. As part of Marlin’s strategy for Tennaxia, it now acquired Traace, a Paris-based Greentech startup that was launched in 2020. Traace specializes in carbon accounting software and counts large corporates such as Siemens or LVMH among its clients. The objective of the acquisition is to position Tennaxia as a comprehensive platform to accelerate its expansion across Europe.
And finally, here are the news that caught our eye last week:
London-based FinTech leader Revolut is targeting the Asia-Pacific (APAC) region for expansion, with a focus on markets like Australia, New Zealand, and Singapore. Despite regulatory challenges in some APAC countries, including India and Japan, Revolut remains committed to growth. Australia, with 600,000 customers and doubling transaction volumes, is a key market, where Revolut plans to triple marketing expenditure. Additionally, New Zealand shows promise, particularly in crypto services, driving early engagement and growth in the region.
hyperexponential, a leading UK InsurTech specializing in data-driven pricing solutions, has appointed Risa Ryan as head of US P&C to drive its US market expansion. With over 25 years of industry experience, Ryan’s role signifies a pivotal moment for hyperexponential, coinciding with their successful hx Renew platform processing over $22 billion in annual gross written premium. The move underscores Hyperexponential’s commitment to strengthening its presence in North America, supported by the relocation of chief revenue officer Richard Gunn from London to New York and ongoing recruitment efforts across key business functions.
Klarna announced a remarkable 11% reduction in operating expenses for Q1, attributing this efficiency to the integration of artificial intelligence (AI) tools across its operations. The company's total revenue surged by 29% during the quarter, fuelled by its expanding presence in the U.S. market and key partnerships with major companies like Uber. Klarna's strategic innovations, including the Klarna Card and a consumer-facing AI assistant, have garnered significant traction, with the latter engaging over 4 million customers.
Stripe, a global payments giant, is transitioning to an invite-only approach for new clients in India amidst challenges posed by the evolving regulatory environment. Citing the need to adapt to this landscape, Stripe characterizes the move as a temporary measure, urging Indian businesses to request invitations for service access. While specifics regarding regulatory hurdles are not disclosed, the company underscores its commitment to the Indian market, affirming ongoing efforts to bolster infrastructure for expanded user support by the latter half of 2025.
Have a great week & see you soon!
Sources of the fundraising reports.