Welcome to TechCrunch Fintech! This week, we are diving into Human Interest’s journey towards an IPO, the latest fintech unicorn, recent fundraises, and more.
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The big story
Specializing in SMB-focused 401k solutions, Human Interest recently secured a $267 million funding round, marking a significant step towards an eventual IPO. While no specific timeline has been set, CFO Tripp Faix expressed the company’s intention to go public when the timing is right. With an impressive growth trajectory, Human Interest has garnered attention since its $40 million Series C round in March 2020, leading up to BlackRock’s minority stake acquisition earlier this year. Notably, the company reports nearing cash flow break-even and having ample resources to sustain over 70% year-over-year growth without additional funding. A founding member, Roger Lee, continues to serve on the board.
Analysis of the week
The birth of new fintech unicorns has become increasingly rare, as highlighted in CB Insights’ State of Fintech Q2 Report. In the second quarter of 2021, 49 new fintech unicorns emerged, while this year, only two were recorded. Noteworthy examples include Altruist and Pigment, which achieved unicorn status through substantial funding rounds. The landscape hints towards a potential rise in new fintech unicorns for the year 2024.
Dollars and cents
Fintech startup Fragment raised $9 million from industry executives, while Coast secured $40 million in Series B funding. Additionally, Astor raised $1.4 million, Slope secured a $65 million funding round, and Matera received a $100 million investment.
What else we’re writing
Paytm faces ongoing challenges with declining revenue and increased losses amid regulatory constraints, while Deel makes its third acquisition this year, acquiring Hofy in a deal exceeding $100 million. African remittance fintech Pesa makes strides towards launching in the United States after successfully expanding in Europe.
High-interest headlines
Tiger Global in talks to lead $500m Revolut share deal
Inside fintech’s newest unicorn: a credit card backed by your home
Capstack Technologies acquires Edge Tradeworks
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