Welcome to TechCrunch Fintech (formerly The Interchange)! This week, we’re looking at the piping hot global payroll space, neobank Dave’s financial results and related stock boost, and more!
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The big story
This week alone, we covered three interesting deals in the global payroll space. For starters, Deel announced it is acquiring African-based payroll and HR software and services company PaySpace in its largest acquisition to date. It also said it’s crossed $500 million in annual recurring revenue (ARR). Then I wrote about Remofirst, a startup out to take on the likes of Deel and Rippling, too, securing $25 million in Series A funding. Also, Tage wrote about how UAE-based RemotePass announced it had raised $5.5 million in Series A funding led by Istanbul-based 212 VC. There’s no question that this space is hot, hot, hot.
Listen to Alex Wilhelm and I talk more about it on Equity:
Analysis of the week
We’re looking at another fintech recording positive financial results. Neobank Dave told us via email that it had achieved profitability for the first time as a public company, notching adjusted EBITDA of $10 million in the fourth quarter and GAAP net income of $200,000. The company also beat guidance for the 2023 fiscal year and reported a 26% increase in non-GAAP operating revenue with a big boost from its ExtraCash offering. Its stock skyrocketed on the news — starting the week opening on March 4 at $22.46, reaching a new 52-week-high of $43.99 on March 7, before closing at $36 on March 8.
Dollars and cents
Two-year-old Colombian payments startup Yuno has reached a $150 million valuation with $25 million in Series A funding from investors such as DST Global Partners, Tiger and a16z.
London-based challenger bank Monzo raised a late-stage funding round of $430 million at a post-money valuation of $5 billion.
Paris-based business banking startup Qonto is using an undisclosed portion of its cash reserve to acquire Regate, an accounting and financial automation platform.
Harness Wealth has expanded into the tax advisory space and raised a $17 million extension to its Series A round.
The Artemis Fund, which invests in underrepresented founders in fintech, commerce and care, closed on its second fund with $36 million in capital commitments.
What else we’re writing
Apple’s iOS 17.4 update is primarily about adapting iOS to the EU’s Digital Markets Act regulation. But the company has also released a new API called FinanceKit that lets developers fetch transactions and balance information from Apple Card, Apple Cash and Savings with Apple.
Georgina Merhom wants to squash the status quo with SOLO, a first-party data collection and reporting engine that integrates user-permissioned data sources, including financial transactions, online records and digital footprints to tell a more complete story about someone’s financial behavior.
PayPal announced that it’s launching “Tap to Pay” for merchants with an iPhone through the Venmo and Zettle apps in the U.S.
High-interest headlines
Capstack Technologies receives strategic investment from Citi Ventures (TC covered Capstack here.)
Argyle raises $30M to expand automated income, employment verification
Synctera raises $18.6M in Series A-1 funding (TC covered Synctera’s Series A here.)
The latest fintech retreat: a $2B challenger to Western Union suspends U.S. services
Treasury Prime has laid off half its staff (TechCrunch covered its $40M raise in February 2023.)
Brazilian fintech CloudWalk announces $320.5M revenue, plans U.S. expansion
TomoCredit is pivoting into B2B with TomoScore, after a number of reported woes
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