Last Week’s Fintech News: Mega-rounds And Intuit’s Decision To Close Mint


Funding Rounds Galore

Last week was an exciting one in the world of fintech, as it saw the announcement of several major funding rounds. In a year where nine-figure rounds have been relatively rare, it was surprising to see not just one, but three of them in a single week. These funding rounds represent a positive boost for the fintech industry, particularly considering the challenging economic climate.

Key Takeaway

Last week was an eventful one in the fintech industry, with several significant funding rounds and the news of Mint’s impending closure. The funding rounds demonstrate the continued investor confidence in fintech startups, even in challenging economic times, while Mint’s discontinuation has created an opportunity for competitors to attract a new wave of users seeking alternative personal finance apps.

The first noteworthy round came from Brazilian banking-as-a-service startup QI Tech, which raised an impressive $200 million in funding led by General Atlantic. This round is not only significant for the amount of capital raised, but also because it marks the largest venture round in Brazil so far this year, across all industries. QI Tech also shared its revenue figures, revealing an impressive 89% increase in revenue in the first half of 2023 compared to the same period last year. This demonstrates the resilience of infrastructure companies, even during economic downturns.

In the Middle East, buy now, pay later platform Tabby secured $200 million in a Series D funding round, valuing the company at $1.5 billion. While some may question why a BNPL platform would attract such substantial venture capital, it’s important to understand the unique market dynamics in the Middle East. Unlike developed markets, where credit card access is readily available, many consumers in the Middle East rely on BNPL services as a crucial source of credit. Tabby’s profitability further adds to its appeal in the eyes of investors.

Lastly, Palo Alto-based Next Insurance raised $265 million in strategic capital from Allianz and Allstate. With Next Insurance nearing $1 billion in premium revenue, this funding round brings the company’s valuation to an impressive $4 billion. While Next Insurance remains unprofitable, its strong position in the SMB-focused insurance market and continued growth make it an attractive investment opportunity.

Combined, these three fintech companies raised a staggering $650 million, with the added notable factor that two of them are based outside of the U.S. This influx of capital is undoubtedly encouraging news for the fintech industry, even if mega-rounds of this scale may not become a regular occurrence.

Where Do Mint Users Go?

In other news, it was recently announced that Intuit will be discontinuing its popular personal finance app, Mint, in January. The company hopes that most Mint users will transition to Credit Karma, but competitors in the space have already noticed a surge in new customers.

Subscription-based money manager app Monarch Money has seen a significant increase in users since the news broke, with the number of sign-ups doubling in the past week. Similarly, other Mint competitors like Copilot and Plenty have experienced a surge in user demand. These competitors attribute Mint’s decline in popularity to the fact that its budgeting and reporting features are too granular and require excessive effort to maintain. The next generation of personal finance apps aims to offer more proactive and integrated money management solutions.

As Mint users look for alternatives, startups like Origin are stepping in to fill the void. Origin, a personal finance platform offering holistic tracking of net worth, AI-powered financial guidance, automated investing, tax filing, estate planning, and Certified Financial Planner consultations, launched just days after the Mint announcement. It remains to be seen how Mint’s closure will impact user sign-ups for startups like Origin.

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