Robinhood Nets $200M at $11.2B Valuation; AmEx Buys Kabbage; Ant Group Plans Consumer Finance Firm

Last week (17-21 August) was yet another interesting week in FinTech this year. Robinhood has raised $200 million from D1 Capital Partners in a Series G funding round that values the stock trading app at $11.2 billion; American Express has bought Kabbage; FinTech giant Ant Group is planning to set up a consumer finance company that will offer Chinese people online loans, according to reports, and more!

Without further ado, let us dive into what has happened in the financial technology sector this week. Let’s connect the dots.

Viva Wallet Aims for €500M Fundraise

Greek payments company Viva Wallet has hired investment bank Jeffries to advise on the €500 million fundraising just weeks after officially acquiring Praxia Bank’s banking license.

After the completion of the share purchase agreement with AMC Oak, Viva Wallet’s banking licence will enable the Athens-based company to offer a wider range of lending and savings products, due to be launched by the end of 2020.

Sources revealed to Reuters that Jeffries will offer stakes in a new legal entity, taking on Viva Wallet’s banking loans as “Viva wants to be a neobank without a loan book.”

Further, Viva intends to sell existing loans to a special purpose vehicle (SPV) within 24 hours of finalisation in an attempt to remove risk from the balance sheet and help regain the trust of customers and investors after Greece’s sovereign debt crisis.

While both Jeffries and Viva Wallet declined to comment, the deal could provide a blueprint for how European FinTech banks raise money in future as some have struggled amid the economic downturn as a result of Covid-19.

Robinhood Nets $200M at $11.2B Valuation

Robinhood has raised $200 million from D1 Capital Partners in a Series G funding round that values the stock trading app at $11.2 billion.

The round comes just weeks after Robinhood topped up its Series F with an extra $320 million at an $8.6 billion valuation, fuelling speculation a public listing could be on the horizon.

The firm has added millions of funded accounts just this year and in recent weeks it has seen record revenue growth, with investors keen to take advantage of market volatility during the Covid-19 pandemic.

That's a $2.6 billion bump in valuation in about a month ??

Robinhood's fundraising this year thus far:

- initial $280M round at an $8.3B valuation in May ??

- $320M addition at $8.6B valuation in July??

- $200M at $11.2B valuation in August ??

This clearly illustrates that Robinhood is still growing, and it's growing fast ??

Next step - IPO? ??

American Express Acquires Kabbage

American Express has struck a deal to acquire the team and technology of online small business lender Kabbage. Financial terms were not disclosed.

Newest FinTech M&A: as anticipated American Express has acquired Kabbage, Inc for an undisclosed amount (though it was rumoured to be around $850M) ??

It's an obvious move for AmEx which aims to expand its product offering for small businesses.

AmEx already is a leader in SME cards business having 40% of the market in the US. This deal will only strengthen their positions.

As for Kabbage, well it was struggling lately, and COVID-19 hasn't made their life easier - they had to stop lending and shift towards PPP loans.

It's interesting to note that back in 2017 SoftBank Group has invested $250M into Kabbage at $1.2 billion valuation, bringing the small business lender into the unicorn club ??

It remains to be seen whether their investment has paid off...

Ant Group Plans Consumer Finance Firm

FinTech giant Ant Group is planning to set up a consumer finance company that will offer Chinese people online loans, according to reports.

Ant is working with partners on the venture: it will hold a 50% stake, with Nanyang Commercial Bank holding 15%, China TransInfo Technology 10%, and Contemporary Amperex Technology also taking a slice, says Reuters, citing sources.

Ant is in the process of securing a consumer license for the company, which will be based in the southwestern city of Chongqing and will have about $1.2 billion in registered capital.

Ant already has a huge hold over the Chinese financial services market through businesses such as Alipay, Ant Fortune, Yu'e Bao, Zhao Cai Bao, Ant Micro Loan, Sesame Credit and MYbank.

Last month the company began the process for a dual listing in Hong Kong and Shanghai that would give it a $200 billion valuation.

Continue reading on other top stories and get the Weekly FinTech Digest to your inbox every Friday by subscribing to Connecting the Dots Newsletter.

Week in Brief

Greek payments company Viva Wallet has hired investment bank Jeffries to advise on the €500 million fundraising just weeks after officially acquiring Praxia Bank’s banking license.

Robinhood has raised $200 million from D1 Capital Partners in a Series G funding round that values the stock trading app at $11.2 billion.

American Express has struck a deal to acquire the team and technology of online small business lender Kabbage. Financial terms were not disclosed.

FinTech giant Ant Group is planning to set up a consumer finance company that will offer Chinese people online loans, according to reports.

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About: I am a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading company's expansion into Europe , I'm an active member of FinTech community and a TechFin evangelist.

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