Issue #56

Fintech funding explodes, Humane’s AI pin dead, Saudi Arabia hires startup for brain chip, and more.

News from February 13 - February 20, 2025

Fintech Funding Explodes

Fintech funding is returning to 2021 levels as investors regain confidence. Payment service Tabby now leads Middle East finance at $3.3 billion after doubling its value, while banking software company Zeta and digital bank Mercury have achieved similar growth. Payment giant Stripe is also increasing its valuation significantly.

In Africa, digital banking platforms Raenest and Affinity Africa secured funding for continental expansion, and insurance technology firm Comulate received capital for growth. These investments follow the same pattern seen during 2021's finance startup boom.

Cryptocurrency platform Coinbase's planned return to India further signals strengthening investor confidence. The finance technology sector appears positioned for strong growth throughout 2025, reversing the careful spending trend of recent years.

Source?

Humane’s AI Pin Dead?

Founded by ex-Apple employees, Humane launched in 2024 with its AI Pin wearable computer after raising $230 million from investors. The device failed to meet expectations, with returns exceeding sales and battery safety issues forcing price cuts.

HP has now acquired Humane's assets for $116 million, far below the $750 million minimum the startup initially sought. All AI Pin devices will stop functioning completely on February 28, 2025, with refunds limited to recent purchases only.

HP will retain Humane's engineering team to form a new division called HP IQ, focusing on integrating the acquired CosmOS AI operating system across HP's product lineup. Customers must transfer their data immediately before support ends.

Source?

Uber Ditches Commission Model?

Uber is replacing percentage-based fees with fixed daily subscriptions for India's auto-rickshaw drivers. Drivers will pay $0.23-$0.46 daily to access customers while setting their own prices, with payments made directly through cash or government-backed digital transfers.

The change affects all three-wheeled vehicles nationwide after successful testing, though car services keep the traditional commission model. Auto-rickshaws represent 25% of India's motorized transportation, making this shift significant in the world's most populated country.

Uber has already implemented similar changes in Bangladesh and Southeast Asia. Under the new system, Uber steps back from payment processing and fare negotiations while maintaining safety reporting features. This strategic pivot directly targets local competitors like SoftBank-funded Ola and Google-backed Namma Yatri that operate subscription models.

Source?

Bulletin Board?

• Saudi Arabia Hires Startup for Brain Chip. Paradromics will develop brain-computer interface technology at a new research center in Saudi Arabia's Neom project. The company plans to begin US human trials in late 2025 before expanding internationally. Their neural implant reads brain signals to enable computer control, competing directly with Elon Musk's Neuralink, which already has patients using similar devices. The partnership represents Saudi Arabia's effort to invest in advanced medical technology beyond its traditional oil sector. Source?
• BlackRock Halts Meetings Over ESG Crackdown. BlackRock halted company meetings following SEC guidance requiring stricter filings for investors "influencing" corporate behavior. The change affects firms owning over 5% of companies, forcing detailed 13-D filings instead of simpler 13-G forms. This disrupts proxy battles and challenges routine governance engagement by major asset managers across all topics. Source?
• Chinese Airlines Rush Into Europe. Chinese state airlines are expanding Europe flights using Russian airspace, giving them a 5-35% price advantage over Western carriers forced to avoid Russia. Despite this European success, the airlines lost $1.8 billion due to domestic competition causing 20% fare drops. They've increased flights to Middle East markets while North American routes remain at only 30% of pre-pandemic levels, limiting overall recovery. Source?
• Elon Musk Staffer Creates DOGE AI. A SpaceX security chief developed an AI chatbot for Musk's Department of Government Efficiency using Musk's own xAI technology. The tool, which disappeared after discovery, recommended cutting bureaucracy while following DOGE's five efficiency principles. This raised conflict concerns with some people, since government use could generate revenue for Musk's company while DOGE already faces questions about its aggressive cost-cutting tactics. Source
• Gen Z Leads Stuffed Toy Boom. Gen Z adults have fueled Jellycat's massive growth, pushing the British toy brand to $252 million revenue in 2023 with 41% US sales increase. Young consumers embraced plushies during pandemic isolation, creating viral TikTok communities around their collections. The trend reflects Gen Z's focus on mental health comfort items and reduced stigma around adult toy ownership in stressful times. Source?

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