Fintech Funding: A Year in Review
This week, we’re diving into the financial waves made by fintech startups in 2024. From substantial fundraising deals to notable growth stories like Plaid’s revenue surge last year, there’s a lot to unpack! Stay updated with TechCrunch’s top fintech stories by subscribing to our newsletter, delivered every Tuesday at 8:00 a.m. PT.
Global Fintech Funding Trends
Despite the ongoing enthusiasm, global funding for fintech startups experienced a dip. According to CB Insights’ State of Fintech 2024 Report, these startups collectively raised $33.7 billion in funding last year, marking a 20% decrease from the previous year. Deal volumes also saw a decline, dropping 17% to 3,580 deals.
However, there’s a silver lining: The annual funding decline was the smallest in three years. Moreover, funding rebounded robustly in the fourth quarter of 2024, reaching $8.5 billion—a remarkable 11% increase from the third quarter.
{CB Insights’ State of Fintech 2024 Report}
Noteworthy Deals and Developments
- LemFi: London-based financial services platform LemFi secured $53 million to expand its customer base and international presence.
- Recharge: This European online prepaid payments leader obtained a €45 million debt facility from ABN AMRO to pursue market consolidation through M&A and explore fintech services.
- Hyperline: French startup Hyperline aims to become the next-generation Chargebee, having raised €4 million from Index Ventures in 2023 and receiving an additional $10 million investment recently.
Challenges and Opportunities
The fintech landscape isn’t without its challenges. Bench, an accounting startup, filed for bankruptcy in Canada on January 7, revealing debts of $65.4 million against $2.8 million cash on hand.
Meanwhile, eToro has reportedly filed confidentially for a U.S. IPO that could value it at over $5 billion, though they remain tight-lipped about these rumors.
{TechCrunch Report}
Strategic Acquisitions and Innovations
- Amazon & Axio: Amazon is deepening its footprint in financial services with plans to acquire Indian buy now, pay later startup Axio.
- DTR’s Blockchain Vision: Ex-SoftBank veteran Akshay Naheta’s startup DTR is on a mission to blend traditional banking with blockchain technology.
- Plaid’s Revenue Leap: Plaid Inc., renowned for connecting fintechs and banks, reported a revenue spike exceeding 25% last year.
The Future of Fintech
Looking ahead, innovations continue to thrive in the fintech space. Phantom Technologies raised $150 million at a $3 billion valuation, with Sequoia Capital and Paradigm leading the round.
As Mark Fiorentino transitions from Index Ventures to Bain Capital, his focus will be on guiding AI-native startups across vertical SaaS and fintech sectors into their next growth phase.
{TechCrunch Report}
A Closing Thought
The fintech sector remains dynamic, with both challenges and opportunities driving transformation. As we move forward into 2025, it will be fascinating to see how these trends evolve and shape the financial landscape globally.
