Greetings from TechCrunch’s Fintech Sector! This edition delves into the unfortunate closures of Tally and Score, explores Klarna’s recent venture, and highlights fintech firms on a hiring spree.
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The standout narrative
In recent developments, I shed light on Tally, a fintech entity established 9 years ago that aimed to aid individuals in managing and settling their credit card bills. Unfortunately, Tally ceased operations following an unsuccessful bid to secure additional funding. Despite accumulating $172 million from prestigious backers like Andreessen Horowitz and Kleiner Perkins, its closure sent ripples through the fintech realm. The exact reasons behind Tally’s downfall remain unclear, though speculation points towards the impact of rising interest rates. Jason Brown, Tally’s CEO and co-founder, expressed to me, “Making this call was heart-wrenching, yet I remain proud of Tally’s accomplishments through the years. While we conclude Tally’s narrative, the mission to enhance debt management persists and I am optimistic that others will advance our efforts.”
Additionally, Dominic-Madori Davis reported on the early August discontinuation of Score, a dating platform catering to individuals with admirable credit scores. This year has seen a noticeable increase in startup failures, echoing findings from Carta and Layoffs.fyi.
Week’s analysis
The Swedish fintech leader Klarna recently announced its foray into banking, evolving from its buy-now-pay-later roots to expand its service roster. Klarna unveiled a new “balance” account and a feature for cashback on app purchases. While the interest-earning feature on stored money is unavailable to U.S users, Europeans can enjoy up to a 3.58% yield. This strategic move places Klarna in direct competition with fintech firms like Revolut and banking giants such as Bank of America and JPMorgan Chase, following closely on the heels of its U.S credit card launch.
Financial insights
Revolut has confirmed its updated valuation at $45 billion following a secondary market share sale, positioning it among Europe’s top-tier private tech ventures.
PayZen is on a mission to make healthcare expenses more manageable through interest and fee-free installment payments, sealing a $32 million Series B funding round led by NEA.
TipRanks, leveraging AI and analytics for enhanced stock market insights, is set to be acquired by Prytek for $200 million, further cementing its position in offering vital business process tools across finance, human resources, and other sectors.
Additional dispatches
A recent inquiry for hiring fintech firms yielded an overwhelming response in just an hour, and even more so over a few days, showcasing the vibrant talent demand in this sector. Rest assured, we intend to refresh our hiring update periodically, so stay tuned!
Under regulatory scrutiny, Apple declared on August 14 its decision to grant third-party developers access to NFC transactions, a technology integral to Apple Pay and Wallet. Moreover, Apple reported a record-breaking $24.2 billion in Q2 revenue from its services division, encompassing payment services.
Noteworthy headlines
Citi and Wells Fargo back loan startup Setpoint with $31 million
Tencent-supported Airwallex approaches $500 million in annual sales, eyeing IPO by 2026
Sling Money secures $15 million for its money transfer application
Banking tech newcomer Amount raises $30 million
Podcast selections
Listen in to the Equity podcast for an in-depth discussion on the closures of Tally and Score.
Delving into software business creation, Parker Conrad of Rippling, an HR software/payroll company valued at $13.5 billion, challenges the conventional strategy advices on TechCrunch’s Found podcast. Conrad advocates for a broader, feature-rich approach from the outset.
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