Welcome to TechCrunch Fintech (formerly The Interchange)! This week, we’re diving into the rapidly evolving global payroll space, exploring neobank Dave’s impressive financial results and the subsequent boost in their stock price, and much more!
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The main highlight
Our focus this week has been on significant developments in the global payroll industry. Deel recently announced its acquisition of African-based payroll and HR software company PaySpace, marking its largest acquisition yet as it surpasses $500 million in annual recurring revenue (ARR). Additionally, Remofirst, a startup challenging the likes of Deel and Rippling, secured $25 million in Series A funding. Tage also highlighted RemotePass, a UAE-based company that raised $5.5 million in Series A funding led by Istanbul-based 212 VC. The global payroll sector is undeniably experiencing a surge of activity.
Hear more insights from Alex Wilhelm and myself on Equity:
Week in review
Another noteworthy achievement in the fintech world is neobank Dave’s announcement of profitability for the first time as a public company. They reported adjusted EBITDA of $10 million in Q4 with GAAP net income of $200,000. Dave exceeded its 2023 fiscal year guidance and recorded a 26% surge in non-GAAP operating revenue, largely driven by its ExtraCash offering. Following this news, Dave’s stock price soared, hitting a new 52-week high of $43.99 before closing at $36.
Financial updates
Colombian payments startup Yuno reached a $150 million valuation after securing $25 million in Series A funding from investors including DST Global Partners, Tiger Global, and a16z.
London-based challenger bank Monzo completed a late-stage funding round of $430 million at a post-money valuation of $5 billion.
Paris-based business banking startup Qonto utilized a portion of its cash reserve to acquire Regate, an accounting and financial automation platform.
Harness Wealth entered the tax advisory space and raised a $17 million extension to its Series A funding round.
The Artemis Fund, focused on investing in underrepresented founders in fintech, commerce, and care, closed its second fund with $36 million in capital commitments.
Other notable mentions
Apple’s iOS 17.4 update addresses compliance with the EU’s Digital Markets Act and introduces FinanceKit, an API allowing developers to retrieve transaction and balance information from Apple Card, Apple Cash, and Savings with Apple.
Georgina Merhom is disrupting the norm with SOLO, a first-party data collection and reporting engine that integrates user-permissioned data sources to provide a comprehensive view of an individual’s financial behavior.
PayPal introduced “Tap to Pay” for merchants using an iPhone through the Venmo and Zettle apps in the U.S.
Headlines of interest
Capstack Technologies receives strategic investment from Citi Ventures
Argyle raises $30M to expand automated income, employment verification
Synctera raises $18.6M in Series A-1 funding
The latest fintech retreat: a $2B challenger to Western Union suspends U.S. services
Treasury Prime has laid off half its staff
Brazilian fintech CloudWalk announces $320.5M revenue, plans U.S. expansion
TomoCredit is pivoting into B2B with TomoScore, following several reported challenges
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