BlackFin Tech Weekly — May 13th, 2024
Every Monday, we publish a short digest which sums up last week’s Fintech activity.
Hello FinTech Friends,
Welcome back to our newsletter! Coming out of a little shorter work week for most European countries, we also have a smaller number of new deals than we normally do. Nevertheless, there has been some new deals happening last week, so keep on reading!
Last week we saw 4 official fintech deals in Europe for a total amount of €50.4m raised with 2 deals in Luxembourg, 1 in Switzerland, and 1 in the UK.
Congratulations to Switzerland's pioneering digital banking platform Alpian who has successfully secured a 40 million Series C extension funding round. The round was led by Fideuram alongside Intesa Sanpaolo Private Banking. Applause also goes out to Fundcraft, the Luxembourg-based digital infrastructure for Asset Management which has successfully secured €5 million in impressive Series A funding from Aperture Capital followed by Six Fintech Ventures. Lastly, we extend our congratulations to eleos, the UK-based Life and income protection insurance for securing €3.7 million in a seed round, led by Fuel Ventures alongside Indico Capital.
Honorable mentions also go to Abound and Iwoca for raising outstanding €800 million and €315m debt vehicles.
Let’s dive in
Alpian, the pioneering digital banking platform based in Switzerland, has closed its Series C funding round, securing CHF 40 million with Fideuram - Intesa Sanpaolo Private Banking leading the investment along with existing investors. This substantial funding underscores confidence in Alpian's innovative approach to digital wealth management and banking services, as it unifies everyday banking with accessible investment and private banking solutions through a user-friendly mobile app. The infusion of capital will fuel further advancements in Alpian's financial offerings, supporting its ongoing growth and expansion efforts. With a doubling of its client base and assets nearing CHF 100 million, Alpian's impressive performance and competitive advantages position it as a significant player in the digital banking sector, poised for continued success and innovation.
Fundcraft, the provider of digital infrastructure for asset management, has successfully raised €5 million in its Series A funding round, with Aperture Capital leading the investment along with contributions from SIX Fintech Ventures and early supporters. The funding will be utilized primarily for product development and to fuel Fundcraft’s international expansion, particularly targeting new markets such as Spain and Germany. Additionally, Fundcraft aims to broaden its focus beyond Venture Capital, Private Equity, and Fund of Funds to address additional asset classes. This infusion of capital will enable Fundcraft to enhance transparency, efficiency, and compliance for asset managers through its end-to-end solution, centralizing and automating processes to deliver better customer outcomes in the fund administration space.
Eleos, the UK’s exclusive provider of fully digital life insurance and income protection products, has raised €3.75 million in its Seed funding round, with Fuel Ventures and Indico Capital leading the investment. This funding will drive the expansion of Eleos's operations, including the launch of additional insurance lines in life and disability verticals. It will also support the forging of new distribution partnerships within the UK and facilitate the company's expansion into the US market.
In addition to this week’s fundraising activity, here is the European M&A activity of the week:
The Access Group has announced that it has signed an agreement to acquire Lightyear. The Access Group is a UK based developer of business management software targeted at the needs of mid-market enterprises. It has over 100,000 clients ranging from the UK to the US and the Asia Pacific region. The Access Group has around 6,800 employees and was founded in 1991. Lightyear, on the other hand, was founded in 2017 and provides accounting and purchasing solutions to SMEs. With around 60 employees, Lightyear has clients in the UK, Australia and New Zealand. With the acquisition of Lightyear, the Access Group seeks to reinforce its ERP software globally and improve purchasing and accounts payables services.
And finally, here are the news that caught our eye last week:
Revolut introduces Revolut X, a dedicated crypto exchange catering to professional investors, accessible exclusively on desktop for UK users holding a Revolut retail account. The platform facilitates fiat-to-crypto transactions and offers real-time trading capabilities for over 100 tokens, complete with market and limit order functionalities.
Revolut X signifies the company's strategic re-entry into the crypto market following regulatory hurdles.
Mangopay has named Ariel Shoham, formerly of Meta, as its new VP of risk product. In this role, Shoham will supervise the product vision and strategy for identity and fraud protection. Mangopay, operating under Advent International since 2022, specializes in providing payment technology solutions tailored for marketplaces.
Shoham's appointment comes at a pivotal juncture as Mangopay aims to bolster its fraud prevention offerings amid a period of growth.
The Biden administration has issued a directive requiring online banking group Chime to pay $4.55 million due to delays in refunding customers. This mandate includes $1.3 million in compensation to affected consumers and a $3.25 million penalty. The Consumer Financial Protection Bureau (CFPB) has reprimanded Chime for repeatedly failing to debit consumers even after account closure promptly.
Nubank, the digital banking powerhouse, has reached a significant milestone, serving over 100 million customers across Brazil, Mexico, and Colombia. With a strong focus on customer satisfaction and innovation, Nubank's rapid growth is underscored by its record-breaking financial performance and successful IPO, solidifying its position as a leading force in the fintech industry.
Have a great week & see you soon!
Sources of the fundraising reports.