Welcome to TechCrunch Fintech (formerly known as The Interchange)! This week, we are taking a closer look at some of the hottest fintech startups in Africa, discussing how the closure of Mint has benefited Copilot, and delving into the reasons behind why VCs are doubling down on a particular expense management startup.
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The Big Story
Despite a drop in venture funding in Africa (similar to the global trend), last week was a promising one for the region’s fintech ecosystem. TC reporter Tage Kene-Okafor shared the news of Uber’s leadership in a $100 million investment in African mobility fintech Moove, which has now reached a valuation of $750 million. He also wrote about Zone’s $8.5 million funding round to expand its decentralized payment infrastructure, and Annie Njanja reported on Tanzanian payments company Nala’s successful pivot to offer remittance services in 2021, which also led to the development of a B2B payment platform.
Analysis of the Week
Intuit’s decision to shut down budgeting app Mint has opened up new opportunities for startups in the space. Christine Hall discussed how Copilot’s growth in the past four months has surpassed that of the previous four years, securing a $6 million Series A round of funding led by Nico Wittenborn’s Adjacent. TC previously covered Copilot’s launch with an initial $250,000 in angel funding and their addition of support for Apple Card. Ozzie Osman, co-founder of Monarch Money, also told TechCrunch that their gain was Mint’s loss.
Dollars and Cents
Non-sexy industries can also appeal to investors. Expense management startup Coast is targeting businesses with real-world field personnel and fleets to manage. The company claims to have seen 550% revenue growth last year and has just raised another $25 million in equity funding.
Digital bank Onyx Private is pivoting to B2B services. The Y Combinator-backed startup secured $4.1 million in funding last year, intending to serve high-earning millennials and Gen Zers. However, last week, it announced to customers the termination of its bank operations and the closure of their accounts.
Swiss fintech nsave, which aims to offer banking services in Switzerland to individuals in countries with unstable banking sectors or struggling with high inflation, has raised $4 million in seed funding.
What Else We’re Writing
Despite the significant growth in fintech, Eric Glyman, co-founder and CEO of Ramp, believes that companies like his have only just begun to tap into their potential. On the TechCrunch Found podcast, Glyman explained that, despite the unicorn corporate card and expense startup’s considerable growth, they have only reached 1% of their potential market share. Fun fact: both Ramp and Deel celebrated their fifth anniversary last week, with just one day separating their founding dates.
In its extensive antitrust complaint against Apple and its iPhone business, the U.S. Justice Department specifically targets the company’s extensive financial operations.
Other High-Interest Headlines
An Unexpected Pairing: Bolt Teams Up with Checkout.com for Frictionless Commerce
Rewards Startup Fetch Raises $50 Million from Morgan Stanley in Response to Private Credit Boom
Wealthfront Puts Off IPO Plans
Affirm Holdings Director Keith Rabois Sells Shares Worth Over $318,000
Cloud Banking Tech Provider NCino Acquires DocFox
Marco Raises $12 Million to Support Trade Finance in Latin America
PayPal-Backed NX Technologies Raises $24 Million in Effort to Streamline Automotive Payments
Prizepool Receives Cease and Desist from FDIC for False and Misleading Statements
DLocal Appoints Pedro Arnt as CEO as Sebastián Kanovich Steps Back
Ryan Zauk Joins OMERS Ventures as Fintech Investor
ICYMI: Klarna Takes Aim at Visa and Mastercard with Open Banking Push
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