Exploring the Latest in Fintech: Bench’s Challenges and Robinhood’s Settlement
This week brings a whirlwind of activity in the fintech world. From Bench’s unexpected closure to Robinhood’s hefty settlement, and a slew of mergers, acquisitions, and fundraises, there’s plenty to unpack. If you want TechCrunch’s biggest fintech stories delivered straight to your inbox every Tuesday at 8:00 a.m. PT, be sure to subscribe here.
The Turmoil Surrounding Bench
On December 27, the fintech startup Bench abruptly shut its doors, subsequently being acquired in a fire sale by Employer.com. Unfortunately for Bench customers, accessing their financial data has become a significant hurdle as they learn that extracting their data isn’t straightforward. Many find themselves caught in a web of bureaucratic red tape.
Bench states that “the only way customers can retrieve their data is by granting Employer.com permission to access it, as the original entity holding the data is now defunct and entangled in bankruptcy proceedings.”
{Source: Company Statement}
Funding Highlights: Float Financial and Open Ledger
Float Financial, a startup specializing in expense management and corporate cards for Canadian SMBs, has successfully raised $50 million in a Series B funding round. While drawing comparisons to U.S.-based giants Brex and Ramp, Float Financial emphasizes its unique focus on the Canadian market.
Pryce Yebesi, at just 24 years old, is making waves with his new venture. Having already sold his crypto invoicing company Utopia Labs to Coinbase, Yebesi announced his latest project, Open Ledger. This innovative company embeds automated accounting software into existing enterprise tools and has already secured $3 million from investors led by Kindred Ventures and Blank Ventures.
Cross-Border Payment Expansion and Strategic Acquisitions
NomuPay has made headlines by raising $37 million at a $200 million valuation. The company plans to use these funds to boost its cross-border payment services for merchants across Asia and the Middle East.
Further solidifying its position in geospatial AI, Moody’s has agreed to acquire Cape Analytics for an undisclosed amount. Meanwhile, Clearwater Analytics is set to purchase investment management platform Enfusion for an eye-catching $1.5 billion.
Robinhood’s $45 Million Settlement
In regulatory news, Robinhood will pay $45 million to settle a Securities and Exchange Commission investigation into multiple alleged violations, including issues stemming from a 2021 security breach.
Global Digital Payment Trends
As digital payments grow more critical in the global financial landscape, India presents an intriguing model for countries aiming to reduce reliance on Western payment networks like Visa and Mastercard. Groww, India’s largest retail stockbroker, is gearing up for an IPO within the next year with expectations for a valuation between $6 billion and $8 billion.
HR Software Developments: Buk and Humi
The HR software industry is buzzing with activity as well. Buk, based in Santiago, Chile, recently raised $50 million in Series B funding at a valuation of approximately $850 million—up significantly from its previous valuation of $417 million in 2021.
In Toronto, Humi has been acquired by Employment Hero from Australia as part of its strategy to establish a presence in Canada.
Plaid’s Expansion Plans
Plaid continues its ambitious expansion with plans to open an office in Raleigh, North Carolina. Headquartered in San Francisco and employing over 1,000 people globally, Plaid sees Raleigh as a pivotal step in meeting rising demand for its cutting-edge financial services technology.
