Welcome to TechCrunch Fintech! This week, we’re covering Payoneer’s recent acquisition of Skuad for $61 million, Robinhood and Dave’s strong second-quarter results, X’s advancements in payments, and more.
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The big story
Recently, publicly-traded fintech company Payoneer acquired Singapore-based startup Skuad for $61 million in cash, with a potential total payout of $81 million. Skuad, founded in 2019 by Sundeep Sahi, aimed to simplify international hiring and had raised $19 million in venture funding. Both Payoneer and Skuad cater to SMBs operating internationally, particularly in emerging markets. Rather than developing the technology internally, Payoneer opted to acquire Skuad and incorporate its payroll and contract management products into its own services.
Analysis of the week
Several publicly-traded fintech companies reported strong earnings last week. Robinhood exceeded second-quarter revenue expectations, posting a revenue increase of 40% to $682 million. According to Citizens JMP director of financial technology research Devin Ryan, Robinhood had an exceptional quarter with high profitability and a significant increase in new net deposits. Neobank Dave’s CEO Jason Wilk shared that the company now has 2.3 million paying members, generating 31% higher revenue of $80.1 million with $15.2 million EBITDA. Wilk also noted a 26% year-over-year decrease in customer acquisition costs to $15. These positive performances from public fintech companies bode well for their private counterparts.
Dollars and cents
CloudPay, originally established in 1996 as a joint venture to provide payroll and payment services to enterprise clients, secured a $120 million funding round to incorporate AI into its workflow automation suite and enhance its offerings.
Businesses are increasingly turning to fintech solutions due to the high costs and slow processes associated with traditional banks. Platforms like Conduit, which transitioned from crypto to traditional banking, are gaining traction by offering lower costs and faster settlements. Conduit recently received a $6 million seed extension from Helios Digital Ventures, enabling the platform to expand its presence in Africa, mirroring its success in Latin America.
What else we’re writing
PayPal announced on August 6 that it is rolling out its Fastlane quick guest checkout solution to all U.S. merchants after a successful trial period. Initially, businesses must use PayPal’s payment processing services like PayPal Braintree or PayPal Complete Payments to access Fastlane.
X (formerly Twitter) is making strides in developing its upcoming payments system, aligning with Elon Musk’s vision of transforming X into an all-encompassing “everything app.” App researcher Nima Owji discovered evidence of new payment features within the X platform, including transactions, balance tracking, and transfers.
High-interest headlines
US fintech Octane raises $50 million in Series E funding led by Valar Ventures
Mexico fintech Stori secures $212 million in equity and debt funding
Greenlight collaborates with Google on Fitbit-focused financial education
Robinhood appoints ex-Cruise and Lyft exec Jeff Pinner as Chief Technology Officer
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