Welcome to TechCrunch Fintech (formerly The Interchange)! This week we take a look at the hot global payroll space, neobank Dave's financial results, related stock increases, and more!
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The big story
This week alone, we've covered three interesting deals in the global payroll space. For starters, Deel announced that it has acquired Africa-based HR software and services company PaySpace in its largest acquisition to date. It also said it surpassed $500 million in annual recurring revenue (ARR). Then I wrote about Remofirst, a startup looking to take on the likes of Deel and Rippling as well, which secured $25 million in Series A funding. Taj also wrote about how UAE-based RemotePass announced that it had raised $5.5 million in Series A funding Led by Istanbul-based 212 VC. There's no doubt that this space is hot, hot, hot.
Listen to Alex Wilhelm and I'll talk more about him on Equity:
Analysis of the week
We look forward to recording other positive financial results in the fintech space. Neobank Dave told us via email that it achieved profitability for the first time as a public company, with adjusted EBITDA of $10 million in the fourth quarter and GAAP net income of $200,000. The company also beat guidance for fiscal 2023 and reported a 26% increase in non-GAAP operating revenue with a significant boost from ExtraCash offerings. The company's stock skyrocketed on the news — starting its opening week on March 4 at $22.46, and reaching a new 52-week high of $43.99 on March 7, before closing at $36 on March 8.
Dollars and cents
Two-year-old Colombian payments startup Yuno has reached a $150 million valuation with $25 million in Series A funding from investors like DST Global Partners, Tiger, and a16z.
London-based rival bank Monzo has raised a late-stage funding round of $430 million at a post-cash valuation of $5 billion.
Paris-based business banking startup Qonto is using an undisclosed portion of its cash reserve to acquire Regate, an accounting and financial automation platform.
Harness Wealth has expanded into tax advisory and raised an additional $17 million for a Series A round.
Artemis Fund, which invests in underrepresented founders in fintech, commerce and sponsorships, closed its second fund with capital commitments of $36 million.
What else do we write?
Apple's iOS 17.4 update is primarily about adapting iOS to the EU Digital Markets Act regulation. But the company also released a new API called FinanceKit that allows developers to fetch transactions and balance information from Apple Card, Apple Cash, and Savings with Apple.
Georgina Merhum wants to crush the status quo with SOLO, a first-party data collection and reporting engine that integrates user-permitted data sources, including financial transactions, online records, and digital fingerprints to tell a more complete story about someone's financial behavior.
PayPal announced that it will launch a “Tap to Pay” service for merchants using iPhone through the Venmo and Zettle apps in the US.
High interest headlines
Capstack Technologies receives strategic investment from Citi Ventures (TC covered Capstack here.)
Argyle raises $30M to expand automated income and employment verification
Synctera raises $18.6M in Series A-1 funding (TC covered Synctera's Series A here.)
The latest fintech downturn: $2 billion competitor to Western Union suspends US services
Treasure Prime has laid off half its staff (TechCrunch covered a $40 million raise in February 2023).
Brazilian fintech company CloudWalk reports $320.5 million in revenue, plans to expand into the US
TomoCredit is transitioning to B2B with TomoScore, after a number of reported issues
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