FinTech unicorns soar in November and Are WealthTech firms feeling the funding pinch?

Top Story of the Week

Are WealthTech companies feeling the pinch of less funding?

The global FinTech sector is experiencing a significant decline in funding. While people feared Covid-19 would impact funding, 2020 and 2021 all proved to be some of the strongest years for funding. However, it looks like the current financial landscape has taken a dip.

Read the full story here.

Research highlight

New FinTech unicorn activity continues to pick up after slow start in 2023

New FinTech unicorn activity continues with strong November at three new announcements in total. In total there were 12 unicorn announcements in November a 33% rise from October whilst New FinTech unicorn announcements stayed level.

Tabby, a buy now pay later provider, achieved unicorn status after raising $58m in their latest Series C funding round, led by Peak XV Partners and STV. The company intends to use the funds to expand its product line into next-gen consumer financial services and support its growing operations. Led by Hosam Arab, CEO, Tabby provided an app that aims to create financial freedom in the way people shop, earn and save. Over 10,000 global brands and small businesses, including H&M, Adidas, IKEA, SHEIN, noon, and Bloomingdale’s, use its technology to accelerate growth and gain loyal customers by offering flexible payments online and in stores. Tabby is active in Saudi Arabia, UAE, Egypt and Kuwait and crossed 3 million active shoppers last year. Hosam Arab said: “With rising interest rates and growing inflation, it has never been more important for people to have access to payment flexibility to stay in control of their finances. Despite downward pressure on FinTech valuations, our business continues to sustainably scale as we lead the generational shift towards fair and transparent financial products in MENA.”

InCred Holdings Limited has successfully secured INR 500 Crores ($60 million) in its Series D funding round. With this latest funding achievement, InCred is has become the second Indian startup to join the unicorn club in 2023, following in the footsteps of Zepto. The influx of capital will be strategically allocated to bolster InCred's core business areas, with a particular emphasis on consumer loans, student loans, and MSME lending. This injection of funds significantly enhances the company's ability to expand its operations and establish a more substantial presence in the market. The funding round enjoys support from a diverse group of investors, including a global private equity fund, corporate treasuries, family offices, and UHNIs (Ultra-High-Net-Worth Individuals). “This funding commitment marks a significant milestone in our journey and takes us into the ranks of unicorns. With our ‘Risk First’ approach, cutting-edge technology, and class-leading management team, we are well positioned for sustained growth in the business over the years to come,” Bhupinder Singh, founder and group CEO of InCred, said. BioCatch, an Israeli company specializing in software development for detecting and preventing bank fraud and money laundering, achieved unicorn status with a new secondary deal, as reported by Calcalist. The company successfully secured approximately $70 million from Sapphire Ventures at a valuation exceeding $1 billion.?

Notably, this transaction was completed just one day before the Hamas-Israel conflict. This marks BioCatch's second significant secondary transaction in 2023, with investment fund Permira Growth Opportunities becoming the third-largest shareholder in the company in May by acquiring a $40 million package from existing shareholders, also at a valuation close to a billion dollars.

Weekly FinTech deal roundup

Quiet week for FinTechs with 16 deals recorded

The FinTech sector remained relatively quiet this week, with FinTech Global reporting on a mere 16 deals across the market.

Read the full story here.

RegTech news

• 7th annual RegTech100 launches revealing the tech companies transforming compliance – Entering its seventh year, RegTech Analyst has unveiled its latest version of the RegTech100, offering a look at the key players making waves in the industry. Read the full story here.
• How Flagright is seeking to revolutionise data analysis with AI Forensics - A technology currently firmly having its moment in the sun is artificial intelligence. With the GenerativeAI platform ChatGPT taking the world by storm earlier this year, many onlookers are excited to see what comes next. The role of AI is evolving rapidly, and what is proving able to achieve. Read the full story here.
• How can RegTechs fight back against money muling? - A growing challenge that has been identified in the financial sector this year has been money muling. The practice, which involves people being persuaded to let cash flow through their bank account in exchange for gifts, has been a key hub for the rise of financial crime. How can RegTechs act as the first line of defence? Read the full story here.

InsurTech news

• The bottlenecks of enterprise BI app modernisation and how you can avoid them - Enterprise BI application modernisation is an incredible challenge with good quality data and insights at stake. Making an effective start in this area of development can translate into real project value. In this blog post, Anatoly Bankovsky, Delivery Manager at?Symfa, a software development company, shares how his team managed to do exactly this during his recent project for a US-based carrier employing 6,000 people. Read the full story here.
• How drone barcode scanners can redefine warehouse management -The challenges surrounding periodic full inventory counts, whether conducted annually, semi-annually, or quarterly, present a significant obstacle for warehouses and distribution centres. These exercises often disrupt operations, prompting many companies to seek alternative methods like cyclical counting. However, this approach can prove labour-intensive and financially burdensome, preventing its widespread adoption within businesses. Scanbot SDK delves into the future of the space. Read the full story here.
• How hx Renew is enabling modern reinsurers to make better pricing decisions -?A hard reinsurance market, though challenging, brings forth a unique opportunity for innovation and growth. Amidst the largest capital squeeze in reinsurance since 2008, the market faces reduced capacity, intensifying the need for fast, responsive, and precise pricing strategies as pivotal drivers of growth. Read the full story here.

WealthTech news

• The future of retail investing: Balancing gamification and investor protection - The evolution of advisory services in the digital age has seen mixed results. The crucial lesson learned is that technology alone isn’t a silver bullet. Read the full story here.
• Koho raises C$86m to reinvent banking in Canada -?Canadian company Koho, known for its innovative approach to banking, has recently marked a significant milestone by raising C$86m.?Read the full story here.
• Greenwood unveils new Invest app for Black and Latino investors - Greenwood, a platform specifically catering to the Black and Latino communities, has officially launched its new offering of Greenwood Invest. Read the full story here.

CyberTech news

• How cyber preparedness and business continuity planning support operational resilience - RegTech firm ViClarity recently underlined how being cyber-prepared and having business continuity planning in place can help firms remain resilient.?Read the full story here.
• Mine’s breakthrough in data privacy governance secures $30m Series B -?Mine, a trailblazing company in the realm of data privacy, announced today the closure of a significant $30 million Series B funding round. Read the full story here.
• Keyless secures $6m funding to enhance biometric authentication technology - Keyless, a UK startup specialising in biometric authentication technology, has successfully completed a significant funding round. Read the full story here.

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ESG FinTech news

• Putting the spotlight on incoming ESG regulations - The spotlight falls on the deluge of new ESG regulations across the EU and worldwide in the latest episode of the Sustainable Edge podcast. Hosted by Joachim Nahem, Executive Chairman of Position Green, the series welcomes along Hugo-A. B. Munthe-Kaas, head of DLA Piper Norway‘s compliance and risk management group, for some engaging dialogue, exploring the complexities of ESG compliance and much more. Read the full story here.
• SIX and Greenomy unite for ESG reporting revolution in European markets - SIX, known as both a Swiss and Spanish Stock Exchange operator and a global financial information provider, and Greenomy, a leader in ESG Reporting, have announced a strategic partnership. This collaboration aims to streamline ESG reporting processes for financial institutions and issuers across Swiss and Spanish markets. Read the full story here.
• Driving sustainable change: ESG-focused finance in Europe’s housing sector -?The urgency to address carbon emissions and embrace eco-conscious practices underscores the significance of the housing industry. Continental Europe suffers from vast amounts of CO2 emissions which stem from housing, amplifying the need for transformative measures that enhance energy efficiency and curtail greenhouse gases. Read the full story here.

Other FinTech news

• Moody’s innovates with GenAI: Introducing Moody’s Research assistant - Moody’s Corporation, a global integrated risk assessment firm, has launched Research Assistant, a new generative AI-powered tool that supports analytic insights.?Read the full story here.
• Bank of England to assess AI’s impact on financial stability in 2023 - The Bank of England will conduct an assessment next year regarding the risks associated with AI and machine learning in the financial services sector. Read the full story here.
• Flagright and Capi Money join forces to bolster African business payments -?Flagright has announced a partnership with Capi Money, which focuses on facilitating international payments for firms across Africa. Read the full story here.