Exits & Deep Reads

New acquisitions for Acorns, SoFi, and Navan (TWIF 4/9)

Studio Ghibli: The Japanese Animation Powerhouse That Conquered the World

Hello Fintech Friends,

Fintechs are getting more acquisitive!

We’re starting to see not only banks and strategics acquiring fintechs, but large fintechs acquiring their rivals as well. Though the market has slowed for fundraises, it continues to be a bonanza for M&A teams.

If you’re coming to New York Fintech Week at the end of April, we’d love to see you at our Fintech & Fitness Workout at Sculpt the morning of April 24th. We’re hosting along with our friends at Cowboy Ventures, Founder League, and Two Sigma.

Then, come wash it down by helping us do what we do best: the New York City Fintech Happy Hour that evening co-hosted with our friends at Citi Ventures, Navan, Valley Ventures, and Currencycloud.

👍👎 Have feedback for us? Let us know!

Please find another week of fintech exits and deep reads below.

☯️ Exits

💻 IPOs & SPACs

China’s Yibin City Commercial Bank started the work for a $300 million Stock Exchange of Hong Kong IPO this year.

🤝 M&A - Fintech

Acorns, the US micro-investing app which has attempted to cross the pond before, acquired UK digital banking for kids startup GoHenry for an undisclosed price. Acorns was last valued at around $2 billion, and GoHenry raised $55 million last year to buy its rival PixPay in France.
Wealth management firm Rathbones agreed to merge with wealth tech provider Investec to create a £100 billion business.
Tandem Bank, a UK sustainability-focused neobank, acquired social borrowing and lending network app Loop Money.
Corporate travel expense management provider Navan (fka Tripactions) valued at $9.3 billion, acquired its Indian rival Tripeur.
Fintech bank SoFi is getting into the home lending business via its acquisition of mortgage provider Wyndham Capital Mortgage.
Financial wellness app FinFit announced that it will merge with salary-linked savings and loan app Salary Finance US.
Norwegian KYC / ID company Verified acquired Swedish electronic signature platform Assently and is prepping for a fundraise.
Walmart-backed Indian payments giant PhonePe backed out of its planned acquisition of Indian BNPL provider ZestMoney.
Private equity fund Parthenon completed the acquisition of payment technology provider Global Payments’ gaming division.
Employee Navigator, a benefits, HR, and payroll firm, will acquire Ease, a broker of HR solutions for small businesses.
Private equity firm KKR will acquire a stake in financial communications software provider FGS Global.
Swiss banking software Temenos is receiving new interest from many private equity firms for a potential buyout around the company’s market value of $5.3 billion.

🏦 M&A - Bank and FinServ

Mastercard has reportedly put billing and payments fintech Transactis, which it acquired in 2019, up for sale, targeting a $100 million price.
Megabank Truist completed the sale of a minority share in its insurance business to private equity firm Stone Point Capital.
The FDIC commenced the marketing and sale process for the $60 billion loan portfolio of the failed Signature Bank.
Canada’s antitrust regulator is looking with renewed scrutiny at the bid of financial advisor Smith Financial Corp to acquire mortgage lender Home Capital Group for $1.3 billion.
Growth and venture capital firm Raine Group acquired Code Advisors, a boutique investment bank.

🇧🇷 Brazil's top fintechs have made huge strides in profitability over the past year -- except for one.

Change in net income from '21 to '22

🟢 PagSeguro: +$60mn
🟢 Stone: +$111mn
🟢 Nubank: +$156mn
🟢 PicPay: +$219mn
🔻 Creditas: -$66mn

What's happened at each 🧵 pic.twitter.com/ZkbX2pVQZX
— Simon Rodrigues (@_simonrodrigues) March 30, 2023

Adyen & Stripe '22 annual reports are out.

Adyen processed $837B, +49% YoY (+70% in '21).
Stripe processed $817B, +26% YoY (+60% in '21)

Adyen market cap: ~$47B
Stripe valuation: $50B

GPV/employee
Adyen: $251M (w/ 3.3k employees)
Stripe: $116M (w/ 7k employees)
— Sheel Mohnot (@pitdesi) April 6, 2023

This week for the Fintech Frontlines Series, we highlight @jefielding, Co-Founder & Managing Partner of @thefundglobal. Jenny has been a strong ecosystem builder and long term fintech investor including in companies like @jefa_io and @join_clutch. pic.twitter.com/KH5JOHRsog
— This Week in Fintech (@twifintech) April 6, 2023