All posts tagged: neobank

African neobank Kuda raised M at flat valuation last year, missed user milestone projection by 3M

African neobank Kuda raised $20M at flat valuation last year, missed user milestone projection by 3M

Earlier this month, Kuda co-founder and CEO Babs Ogundeyi told users that the Nigerian online challenger bank had reached almost N₦56 trillion (~$60 billion) in transaction value since its 2019 launch.  Ogundeyi also said that Kuda had achieved a notable milestone, with 7 million retail and business customers as of today. However, the figure falls sizeably short of the fintech’s projections when it saw fresh investment last year. In February 2023, Kuda presented its investors with a pitch for new cash injection. At that time, it claimed 5 million users and predicted this figure would double by the end of 2023, as per an investor pitch deck seen by TechCrunch. Kuda eventually raised an estimated $20 million in the middle of 2023, according to people with knowledge of the fundraising efforts — however the bridge round closed at the same $500 million valuation it achieved in 2021 when it raised a $55 million Series B round. Amid the 2021 venture capital boom, Kuda had actually secured one of Africa’s largest Series B rounds, off the …

Bunq, the Dutch neobank, has raised 1M at a flat .8B valuation to break into the US

Bunq, the Dutch neobank, has raised $111M at a flat $1.8B valuation to break into the US

Remote working and digital nomads became two very prominent aspects of the world of work during the pandemic, shedding a light on the millions of people who live in one country but earn money in another. Now, a startup that is building financial services catering to that demographic is announcing some growth funding to expand its business. Bunq — a Dutch startup that provides banking, savings, payments, card, and other services to consumers with a focus on people who might need such services in more than one country across Europe — has raised €100 million in equity funding ($111 million at today’s rates), €44.5 million that just closed today, and a previously undisclosed €55.5 million earlier this year. The investment is being made as an “inside round” from previous backers, specifically Pollen Street Capital, Raymond Kasiman and founder and CEO Ali Niknam. The round is coming in a valuation of €1.65 billion ($1.8 billion today; $1.9 billion in 2021), exactly the same valuation the neobank had in 2021 when it raised $228 million from the …

Daylight, the LGBTQ+ neobank, calls it quits

Daylight, the LGBTQ+ neobank, calls it quits

Daylight, an LGBTQ+ banking platform, is shutting down. Its operations will cease on June 30, according to embattled co-founder and CEO Rob Curtis.  The announcement comes months after NY Magazine published an explosive feature on the neobank. The article honed in on Daylight, whose seed and Series A fundraises TechCrunch had covered here and here, respectively. NY Mag’s piece detailed a lawsuit brought on by three former employees as well as alleged fabrications and inappropriate behavior on the part of Curtis.  In a blog published today, Curtis said he felt like “now is the right time to exit this market” and told customers that their “money is safe and will be fully accessible for transfer through 30 June.”  He added: “Daylight had a great run paving the way for US LGBTQ+ customers — we opened thousands of trans-inclusive debit accounts, supported thousands of prospective LGBTQ+ parents’ plans for their families. Ultimately, though, we couldn’t provide these services in a way that covered our costs — this is likely a job for big banks and I hope …

Kenya’s Fingo partners with Ecobank, launches neobank on the back of M investment

Kenya’s Fingo partners with Ecobank, launches neobank on the back of $4M investment

Yesterday, Fingo, a YC-backed Kenyan fintech, launched its neobank, which it developed in collaboration with Pan-African financial institution Ecobank Kenya. The Ecobank subsidiary unveiled the neobank, the first of its kind in the East African country, according to the pair, in an event with the country’s president, William Ruto, in attendance.  It’s taken a while for Fingo to get here since CEO Kiiru Muhoya and his co-founders James da Costa, Ian Njuguna and Gitari Tirima founded the Kenyan outfit in January 2021 to provide financial services that appeal to a fast-growing African youthful population that happens to be the youngest globally but the most financially marginalized. For young adults in Africa, opening an account can take several hours to days, with multiple in-person interactions and requirements to bring physical paper documents. In addition, they have to deal with expensive fees to send money and maintain their accounts. Yet, they still struggle to access savings, insurance and credit, financial services Fingo promises to deliver to its users; however, it is currently pitching them cheaper transfer fees, …

Green-Got is a neobank for climate-conscious customers

Green-Got is a neobank for climate-conscious customers

French startup Green-Got is building an alternative to your traditional bank account with a focus on climate change. Essentially, Green-Got guarantees that your savings and the money that is sitting in your bank account aren’t going to finance fossil fuel projects and other polluting industries. The startup recently raised a $5.5 million (€5 million) funding round led by Pale Blue Dot. The community of Green-Got’s customers contributed nearly €2 million to this funding round. Green-Got managed its equity crowdfunding campaign through Crowdcube with around 1,300 investors. As a neobank, Green-Got doesn’t want to stand out when it comes to its feature set. Clients can create an account using Green-Got’s mobile app in just a few minutes. They get a current account with a French account number. A few days later, they receive a debit card. That card works with Apple Pay and Google Pay. And the startup doesn’t charge any foreign transaction fee on top of Mastercard’s exchange rate. Every time you make a purchase with your card, you receive a push notification on your …

The story of how Dave took the long road to become a neobank

The story of how Dave took the long road to become a neobank

Welcome to The Interchange! If you received this in your inbox, thank you for signing up and your vote of confidence. If you’re reading this as a post on our site, sign up here so you can receive it directly in the future. Every week, I’ll take a look at the hottest fintech news of the previous week. This will include everything from funding rounds to trends to an analysis of a particular space to hot takes on a particular company or phenomenon. There’s a lot of fintech news out there and it’s my job to stay on top of it — and make sense of it — so you can stay in the know. — Mary Ann Q&A with Dave founder Jason Wilk Right before the Silicon Valley Bank meltdown, I had a conversation with Jason Wilk, founder and CEO of neobank Dave, about that company’s business. I was intrigued because the bank — which counted Mark Cuban as one of its investors as a private company — took what some might say was a backward route to …

Neobank Vexi raises millions to offer young Mexicans lower interest rate credit cards

Neobank Vexi raises millions to offer young Mexicans lower interest rate credit cards

Getting a credit card is something most Americans take for granted. In countries such as Mexico, it’s a much more difficult and less common endeavor. In fact, less than 20% of the population has access to a form of credit, with just an estimated 10% having credit cards. In recent years, a number of startups have emerged to offer underserved Mexicans more options in an effort to boost inclusion in the country. One such startup is Vexi. former Citi exec Rojo Blasquez started the company in 2018 and was later joined by Gabriela Estrada (who also spent more than 9 years at Citi), Cinthia Merlos, Salvador Michel and Carlos Franco as co-founders. All founders grew up in middle class households and are personally invested in helping Latin America’s emerging middle class have access to better financial services, said Merlos, who serves as the company’s COO.  “We all come from middle class families here in Mexico. We went to public schools and worked really hard to get scholarships for private schools or to study abroad,” Estrada …

Singapore-based neobank Aspire raises 0M from Lightspeed and Sequoia SEA

Singapore-based neobank Aspire raises $100M from Lightspeed and Sequoia SEA

Aspire, the Singapore-based neobank that wants to become the financial operating system for SMEs, has raised an oversubscribed $100 million Series C round. Investors included Lightspeed and Sequoia Capital SEA, along with Paypal, Tencent, LGT Capital Partners and returning investors.  TechCrunch last covered Aspire when it raised its Series B in 2021. Founded in 2018 to provide working capital loans for small to medium-sized businesses, Aspire began offering more services, including bank accounts for cross-border businesses, corporate cards, payable and receivable management and automated invoice processing connected to financial management software.  Co-founder and CEO Andrea Baronchelli says that over the past 12 months, Aspire has tripled its annualized total payment volumes to $12 billion, serving over 15,000 businesses in Southeast Asa.  Baronchelli told TechCrunch that the startup focuses “primarily on new age business whose purchase decisions are driven more and more by UX and usability, from single director businesses to 500+ employee.” This covers a wide range of sectors, including IT companies, professional services, goods businesses and startups. Most Aspire’s customers use it for payment …

Lunar, the Danish neobank last year valued at .2B, raises M to shoot for the profitability moon

Lunar, the Danish neobank last year valued at $2.2B, raises $38M to shoot for the profitability moon

Lunar, a neobank out of Denmark, last year raised money at a $2.2 billion valuation from a splashy set of investors that included Heartland, Kinnevik, Tencent, IDC Ventures and comedian Will Ferrell, to fill out its ambition to build a financial “super app.” Times being tough for startups right now, Lunar has raised yet again, but with a more modest goal: to “shorten the path to profitability.” The startup announced today that it has closed a round of €35 million (around $38 million at today’s rates), money that it will be using to sharpen its product and its profile in the Nordics. Lunar says it has around 500,000 users in Denmark, Norway and Sweden. But notably, that is the same number of users that it disclosed when it announced funding in March 2022, which implies that not only is the startup operating at a loss that’s eroded its runway, but growth has stalled for the company in the last year. “The capital markets that we and other similar companies raise money in have changed completely, …

Zopa, the UK neobank, raises M more at a B+ valuation

Zopa, the UK neobank, raises $93M more at a $1B+ valuation

After raising $300 million in a round led by SoftBank back in 2021, UK neobank Zopa has closed a deal to put more funding in its coffers. The company — which provides consumers with lending services, credit cards and savings accounts and has some 850,000 customers — has raised £75 million (around $93 million), an all-equity investment that plans to use both to build out new financial products, to bring on more customers, and to make acquisitions. Interestingly, Zopa is not disclosing a lead investor, but CEO Jaidev Janardana confirmed to us in an interview that it was an inside round from existing investors; that some of those involved included investment firms Uprising and Augmentum; and that SoftBank was not in this round but that it remains an investor and board member. The company also said in a statement that the funding “cements and markedly enhances” its unicorn status — the $300 million round in 2021 was made at a $1 billion valuation — but it’s not providing an actual valuation with this latest round. …