Fintechs focusing on the payment ecosystem raised some big bucks last week from both corporate partners and traditional investors.
Upstart Revolut is on track to raise 50 million pounds (about $65 million) at a valuation of 300 million pounds ($390 million). Founded just two years ago, London-based Revolut provides free international transfers via app or plastic card at the interbank exchange rate. Sky News reports that Revolut is “in the final stages” of negotiating the mammoth fund raise — even though it is losing money. The round will be led by Index Ventures, Sky News says. On its website, Revolut says it has more than 660,000 customers who have conducted in excess of 29 million transactions worth more than $3.3 billion.
LendUp is getting an injection of funds from PayPal. The San Francisco-based “socially responsible” lender didn’t disclose the size of the deal, which brings the original payments innovator into its court, suggesting that LendUp’s target audience — the unbanked — is heading into the mainstream sooner rather than later. The investment from PayPal also is a vote of confidence in LendUp, which tries to help lower income borrowers avoid the pitfalls of payday loans. LendUp was fined $6.3 million last fall for overcharging clients and misrepresenting fees — a failing that the CEO said were the results of growing pains and insufficient compliance and legal staffing.
LendUp also announced a series of C-suite promotions and additions to the staff as the startup expands its reach.
Klarna continues its expansion with a new partnership with Visa. Online payment company Klarna announced Visa would also forge a strategic partnership with the Stockholm-based startup. Klarna says it is one of the fastest growing online payment companies and serves 60 million consumers and 70,000 retailers. In a statement, the companies said: “Visa’s planned investment is part of a global strategy to open up the Visa ecosystem and support a broad range of new partners who are helping to redefine and enhance the purchase experience for millions of consumers globally.” The size of the deal was not disclosed.
Earlier this month, Klarna announced that it had obtained a European banking license, which would free it to offer a new menu of products.
Tango Card has raised a $10 million financing facility from Western Technology Investment, a venture debt firm. Seattle-based Tango Card provides the backend services to help 2,000 enterprise companies reward customers or employees with gift cards. In a statement, Tango said: “The company plans to use the funds to increase investment in its core Reward Delivery Platform, or RDP™, in new products to meet the needs of its global customer base, and to accelerate expansion outside of the United States.” The company added that it had several financing choices but selected WTI because of its “commitment level and engagement model.”