FinTech, which combines the words “financial” and “technology,” is a relatively new and somewhat ambiguous phrase that refers to any developing technology that enables consumers or financial institutions to supply financial services in newer, faster ways than previously possible. Just think of the difference between walking into a bank to inquire about your balance and being able to access that information in real time on your phone. FinTech is empowering customers to take control of their financial lives, resulting in far greater financial knowledge than previously possible. By employing new technology, it is tearing down traditional boundaries and assisting people in improving their financial status and outcomes. Fintech also encompasses the creation and use of digital currencies like bitcoin. While that sector of fintech gets the most attention, the major money is still in the traditional global banking business, which has a multi-trillion-dollar market cap.
The Importance of FinTech Industry
FinTech’s success is owed in large part to the opportunities that it provides to small businesses to compete on an equal footing with traditional banks and financial institutions. It’s no longer about who’s the biggest, but who’s the fastest and most responsive at effectively meeting ever-changing consumer needs, thanks to FinTech. Furthermore, FinTech organisations’ solutions are no longer “one size fits all.” Instead, they provide focused, often niche, financial services that address a specific financial need for a fraction of the cost of standard financial services. The FinTech companies that flourish will be those who continue to innovate in delivering new answers to old problems as customers become savvier and more connected.
Over the first three quarters of 2021, fintech startups received $94.7 billion in investment worldwide. Several innovative financial services and the major fintech companies are fueling this expansion by attracting investors who are looking to invest in new financial products and services. To list, here are the Fintech startups that have recently received Series A funding based on Crunchbase.
Source: Investopedia, Crunchbase
Volopay
Photo by Volopay
Volopay, a Singapore-based corporate cards and payable management platform, has raised US$29 million in a Series A round led by Tinder Founder Justin Mateen’s JAM Fund on March 1, 2022. JAM Fund, Winklevoss Capital Management, Rapyd Ventures, and Accial Capital, as well as fintech veterans like Jeffrey Cruttenden, CEO of Acorns, Sweta Rau, Founder of White Ventures, Amrish Rau, CEO of Pine Labs, and Jitendra Gupta, Founder and CEO of Jupiter, as well as Antler Global and VentureSouq, participated in the funding round. The funds will be used by Volopay to grow into the Asia Pacific and Middle East and North Africa (MENA) regions, with a mix of equity and debt. It will also work to improve its integrations with leading ERPs, HRMs, CRM tools, and project management software. Volopay is constructing its own infrastructure and pursuing financial licences in the markets where it operates. The startup claims to have expanded to a 150-member team dispersed around Asia Pacific, including Singapore, Australia, India, Indonesia, and the Philippines, since its seed funding. Funding Societies, Zipmex, Moneysmart, Smartkarma, and Austrionova are among its clientele.
Source: e27
Fintern
Photo by Financial IT
Fintern secured £8 million in new financing in its most recent funding round on February 9, 2022. Hambro Perks, a multinational investment business focused on private investments, led the transaction, which increases the Company’s total capital invested to £40 million and will help fuel expansion aspirations. Fintern’s primary debt supplier, Varengold Bank, as well as other high-net-worth individuals, contributed equity to the round. Fintern was advised on the fundraising by Osborne Clarke LLP. The funds will be utilised to expand Fintern’s footprint in the United Kingdom, expand its personnel, and establish its first B2B collaborations. The company has processed over 50,000 loan applications since starting its consumer lending offering in March 2021, demonstrating that this low-cost option works. It makes use of Open Banking to acquire a complete view of each applicant’s financial status. The startup can base its lending decisions on what someone can afford to borrow instead of depending on an incomplete snapshot of the past by combining this data with various additional sources.
Source: IBS intelligence
Lean Technologies
Photo by Lean Technologies
On January 19, 2022, Lean Technologies, a Saudi KSA-based fintech, raised $33 million in its newest funding round. Existing investors RAED Ventures, Outliers, Shorooq, and JIMCO participated in the Series A round, which was led by prominent venture capital company Sequoia Capital India. Newcomers Liberty City Ventures and Human Capital joined the round, as did renowned angels such as Brex’s Henrique Dubugras, former GE CEO Jeff Immelt, and Michael Ovitz. Lean’s platform and APIs allow its clients to seamlessly link with their customers’ bank accounts to get account information and make quick bank transfers. The Lean APIs have opened up a wide range of applications, and they are now being used by some of the region’s largest financial institutions in a variety of sectors, including remittances, cryptocurrencies, and investment.
Source: Magnitt
Floating Point Group
Photo by eFactory
Floating Point Group, a Hoboken, New Jersey-based, MIT-founded platform that makes it easier for investors to deploy cryptocurrency-centric strategies at scale, has raised $10 million in Series A funding on September 15, 2021. Tribe Capital, Coinbase Ventures, FAST by GettyLab, Borderless Capital, CapitalX, and Formulate Ventures were among the investors in the Series A round. Other sources of funding were Anthony Scaramucci of SkyBridge Capital and officials from GoldenTree Asset Management, HC Tech, and Pythagorus Investments. The new platform from Floating Point Group gives institutional clients direct market access to centralised and decentralised cryptocurrency exchanges as well as over-the-counter desks. Hundreds of hedge funds, asset managers, and brokers have utilised the company’s products to trade billions of dollars in cryptocurrencies. The funds were used to expand the startup’s existing software engineering team in the United States and to enter new markets.
Source: Finsmes
Zolve
Photo by Zolve
Zolve, a neo banking startup aimed at assisting immigrants in the United States acquire access to financial services, has raised $40 million on October 27, 2021, in a fresh funding round ahead of its launch. DST Global’s partners led the Series A investment round for the Bangalore-based startup. Tiger Global and Alkeon Capital, as well as current investors Lightspeed Venture Partners and Accel, participated in the round, which valued the 10-month-old business at $210 million and brought its total fundraising to $55 million. The company’s value has been raised to $210 million.
Source: TechCrunch
Tamara
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Photo by Greenhouse
Tamara, a nine-month-old buy-now-pay-later platform based in Riyadh, has raised $110 million in a Series A investment headed by Checkout.com, a renowned worldwide payment processor, as revealed on April 22, 2021. The debt and equity-based investment comes just four months after the Saudi fintech received $6 million in the country’s largest seed round. The startup swiftly established itself as a market leader in Saudi Arabia, landing some of the country’s most well-known brands, including SACO, Whites, Nejree, and Nice One. With notable partners such as Namshi and Floward, the company also expanded its services to the United Arab Emirates. Tamara was also able to launch its mobile consumer app and in-store service with the help of a number of local partners. The $110 million funding injection will be used to grow the company’s team, expand into new GCC nations, and fund the distribution of its BNPL product.
Source: TechCrunch
Conclusion
Fintech is increasingly an enabler not just of our personal or business finances, but of all levels of economic activity, as digitalisation continues to play a significant part in financial services, as well as our wider lives and livelihoods. Fintech will become synonymous with finance in the future. We hope that this article reaches you and inspires you to be more entrepreneurial. Everything has to begin somewhere, so why not begin here?
