FinTech Daily News – Edition 64, 03.10.2017
October 3, 2017
FinTech Daily News – Edition 66, 05.10.2017
October 5, 2017

FinTech Daily News – Edition 65, 04.10.2017

FinTech Daily News

by Florin Oprea

Edition 65, 04.10.2017

Deals, Investments & M&As

Atlanta Fintech ‘Unicorn’ Kabbage Raising $161 Million

Urvaksh Karkaria  – Atlanta Business Chronicle

Kabbage is Raising $161 Million

JD Alois – Crowdfund Insider

Online SME lender Kabbage is raising $161 million, according to a filing with the Securities and Exchange Commission. The Fintech firm filed the Form D last week indicating it had already received $80,573,040 with the same amount remaining to be raised.

FAO: It has already raised more than half sum. Earlier this year, in August, the company announced it had agreed to a $250 million investment from Softbank. Kabbage is valued at $1B.

Seasoned Japanese Startup Puts Fintech On The Map With $500m IPO

Steven Millward – Tech In Asia

Money Forward, a well-established financial tech startup, has launched its IPO, marking a watershed moment for Japan’s burgeoning fintech scene.

FAO: Money Forward IPO raised $25m and is now worth $505 million. It was a successful deal, as expected. We have followed this topic earlier this year.

Fintech Tinubu Square Secures EUR53m Investment From Long Arc Capital & Bpifrance

MarketWatch

Tinubu Square, a leading provider of trade credit risk management solutions, announced the investment of Eur 53 million from Long Arc Capital and Bpifrance to accelerate the development of its technology solutions for credit and surety insurers, trade finance banks and export credit agencies.

FAO: Tinubu raised a total of $78.1m in equity funding in 2 rounds. Previous round was closed in 2011.

Venture Capital Investors Urged To Wake Up To ICOs

Martin Arnold – Financial Times (subscription)

A leading European venture capital investor has warned that his industry must wake up to the potential of “initial coin offerings” or it will find itself sidelined as the most promising start-ups fund themselves by issuing cryptocurrency tokens.

FAO: I am sure you are already acquainted with the ICO phenomenon…if not, please read our sister publication Blockchain Daily News.

Payments

Payments Disruptor Square Faces Its Own Disruption With Hardware-Free Payments As It Launches Square Stand

Yolanda Redrup – Financial Review

The Australian boss of Twitter founder Jack Dorsey’s payments technology company Square has flagged future plans to introduce hardware-less payments solutions, as the industry disrupter faces challenges of its own from newer players.

Lending

Employee Lenders Are One Of The Fast-Growing Areas Of UK Fintech

Martin Arnold – Financial Times (subscription)

Online lenders that are repaid from people’s salaries have raised more than £175m in recent months, marking out the nascent sector as one of the hottest areas of the UK fintech market.

Wealth & Personal Finance

Hedge Fund Man And Wealth Manager Alan Miller Rips Into Robo-Advice Firm Nutmeg

Lucy White – City A.M.

Former hedge fund manager Alan Miller, who now runs wealth management firm SCM Direct, has ripped apart robo-adviser Nutmeg in his latest blog post. He denounced the company’s escalating losses, which hit £9.38m in 2016, and calculated that the accounts Nutmeg manages for its customers earn nowhere near enough even to pay staff.

FAO: Nutmeg managed to raise a total of $89.83m in equity funding in 4 round, first one in 2012. It has entered a partnership with German challenger bank Fidor this summer.

Retail banking

First Data And Live Oak Bancshares Close Deal For Digital Banking Joint Venture

GlobeNewswire

First Data  a global leader in commerce-enabling technology, and Live Oak Bancshares announced they have closed the digital banking joint venture that was announced earlier this year. The new company, named Apiture, combines First Data’s and Live Oak Bank’s digital banking platforms, products, and services, delivering innovative technology solutions tailored for financial institutions.

App-Only Bank Atom Nears £1 Billion In Deposits

Oscar Williams-Grut – Business Insider

Startup, app-only bank, Atom has passed £900 million in deposits less than two years after launching its first savings product.

FAO: Good volumes announced by one of Europe’s top digital banks.

Cap Markets & Other

UAE Exchange To invest Over $245mln In Fintech Acquisitions

Zawya

The UAE Exchange, the largest money transfer company in the region, has allocated $250 million for acquisitions in different variances of technology sector namely fintech, blockchain and other digital channels.

FAO: Note that Dubai has recently launched its own cryptocurrency called emCash. More in Blockchain Daily News.

Analysis

What SoftBank Really Wants

Connie Loizos – TechCrunch

Some in Silicon Valley aren’t quite sure what to make of SoftBank and its massive, roughly $100 billion Vision Fund. At times, they say privately, it looks like a drunken gunslinger, firing off massive checks in quick succession.

FAO: Expansion, deals, investments, profit…anything else?

Opinion

Xavier Rolet Bets The UK Can Create An £100bn Company In The Fintech Sector In 10 Years

Helen Cahill – City A.M.

Xavier Rolet, CEO of the London Stock Exchange, reckons Britain will build a fintech firm worth £100bn in the next decade. Talking at the Conservative party conference, Rolet said the UK had a competitive advantage in fintech because the finance and technology experts fuelling the industry all work closely together.

 

FAO: Florin Adrian Oprea, Editor-in-chief FinTech Daily News

DNT: Decebal Nicolaie Todarita, Editor FinTech Daily News