Greetings from TechCrunch Fintech! This issue delves into Human Interest’s journey to an IPO, the emergence of a new fintech unicorn, a wave of fresh financial injections, and beyond.
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The main event
Small and medium business (SMB) centric 401k provider Human Interest recently revealed a fresh investment of $267 million, which marks a significant step towards its future public offering, with no fixed date announced. “Our goal is to transition to a public entity at a strategically appropriate time,” CFO Tripp Faix disclosed to TechCrunch. Observing the growth trajectory of Human Interest has been quite the spectacle. My initial coverage on the company was back in March 2020 when it secured a $40 million Series C. It has since undergone several additional funding rounds before BlackRock’s minority stake acquisition in January 2023. The company prides itself on nearing a cash flow break-even point and boasts a robust balance sheet that promises to support continuous growth at a rate of 70%+ yearly, without the need for extra funds. An interesting tidbit: Layoffs.fyi’s founder Roger Lee helped start Human Interest in 2015 and continues to serve on its board.
This week’s analysis
The scarcity of fintech unicorns is becoming more apparent, akin to finding a rare four-leaf clover. The State of Fintech Q2 Report from CB Insights highlights that only two new fintech unicorns were recognized in the second quarter. To put it in perspective, there were 49 in the same time frame of 2021. Altruist, serving registered investment advisors (RIAs) as custodian, in May attracted $169 million in Series E funding from ICONIQ Growth, which positioned its value at over $1.5 billion. Furthermore, the French startup Pigment garnered $145 million in April, shooting its valuation up to $1 billion in just five years. The technology firm specializes in a business planning software that aids large firms in visualizing past financial achievements and projecting future performance. The coming year might unveil more unicorns to us. Keep scrolling for more insights.
Financial facts and figures
Digital ledger API innovator Fragment secured $9 million, with contributions from notable fintech infrastructure leaders at Stripe, BoxGroup, Avid Ventures, Zach Perret (Plaid), and Jack Altman (Lattice).
Coast, which prides itself as a forward-thinking financial services platform for the future of transport, announced a $40 million Series B investment spearheaded by ICONIQ Growth, following a $25 million venture funding disclosed four months earlier.
Astor, a no-cost personal finance platform aimed at women, blending community with investment in a user-friendly manner, has raised $1.4 million.
Supported by Sam Altman, Slope, a B2B payments company based in Silicon Valley offering streamlined order-to-cash workflow solutions for large enterprises, has initiated a strategic financing move securing $65 million in a combination of equity and debt, led by JP Morgan Payments.
Matera, deriving from Brazil and specializing in instant payments, QR code transactions, and core banking software for financial entities, received a significant $100 million backing from Warburg Pincus.
Additional insights
Indian fintech giant Paytm continues to face challenges, with a reported 36% decrease in revenue and a doubling of losses in the first quarter amidst an ongoing rigorous regulatory environment impacting its payment banking subsidiary’s operations.
Rapidly expanding payroll service Deel has executed another buyout — marking its third acquisition this year. Deel took over Hofy, a London-based enterprise specializing in the provision and management of remote office equipments. Although the exact financial details remain undisclosed, sources in the know suggest the deal was valued in excess of $100 million.
African remittance fintech Pesa is on the verge of acquiring necessary licenses to enter the US market, following its successful launch in 27 European countries after making a name in Canada.
Headlines of interest
Tiger Global in progressive talks for a $500m stake in Revolut
Exploring the newest fintech unicorn: a home equity credit card
Edge Tradeworks becomes part of Capstack Technologies
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