Global fintech funding dropped to a four-year low in the first quarter of 2024 but the number of deals ticked up, according to data intelligence company CB Insights. 

Fintech funding in Q1 fell to $7.3 billion, registering a 54% drop year over year, according to an April 18 report by CB Insights. 

While funding dollars dropped in Q1, the total number of deals in the sector increased by 15% quarter over quarter to 906, a CB Insights analyst told Bank Automation News. 

This means that “investors are interested in fintech, they’re just making smaller deals,” the analyst said.  

For example, in terms of deals, Adam Hallquist, principal at investment firm FTV Capital, tells BAN in an interview for “The Buzz” podcast: “We’re really outpacing last year.” 

Hallquist has his eye on both payments and wealth startups. 

Listen here. 

Funding deals

Despite a decline in total fintech funding in Q1, the following fintechs raised money this past month: 

Kudos raises $10.2M in series A

Kudos, the AI-driven digital wallet, raised $10.2 million in a series A funding round from QED Investors and Samsung Next, among others, according to a May 17 release. 

The digital wallet advises customers on which digital credit card they should use to make a payment to optimize rewards and points, the release stated.

“This funding lets us add new AI-powered features to make our smart wallet even more personalized,” Tikue Anazodo, co-founder and chief executive officer at Kudos, told BAN. 

“We’ll also expand our partnerships with brands and issuers to give our members more value with every purchase.” 

The company aims to refine its AI model to “provide even more precise and valuable suggestions for our users,” and provide tailored benificial offers to their customer’s spending habits, Anazodo said. 

Since its inception in 2022, Kudos has amassed 200,000 registered users and has a gross merchandise value  of $200 million, the release stated. 

Aeropay announces $20M in series B

Pay-by-bank solution provider Aeropay has raised $20 million in series B financing from Chicago Ventures, Group 11 and Continental Investment Partners, according to a May 16 release. 

“Bank-based payment methods are sorely needed everywhere, so the capital will be used to accelerate our growth into those areas that are prime for our solutions,” Daniel Muller, founder and chief executive of Aeropay, told BAN. 

In 2023, Aeropay reached $1 billion in transaction volume as account-to-account and pay-by-bank solutions gained traction, Muller said. 

The company’s existing investors, including Chicago Ventures and Continental Advisors, have been essential in extending support beyond financial backing, he said. 

“Their contributions span from facilitating top-tier talent acquisition to fostering strategic partnerships through introductions and active board participation,” Muller said. 

Aeropay aims to target industry verticals like financial services, wellness, utilities, quick service restaurants and property rentals to grow its reach, he said. 

Ansa raises $14M in series A

Payments solution provider Ansa raised $14 million in series A funding from Bain Capital and Box Group, among others, according to an April 30 release. 

“The funding will be used to broaden the depth of Ansa’s payment solutions, with a focus on product development and engineering, to empower merchants to better engage their customers,” Sophia Goldberg, co-founder and CEO at Ansa, told BAN, adding that some funding will also go toward expanding the team. 

Ansa helps provide payments solutions like digital wallets to merchants with low-value or small transactions in greater frequency, Goldberg said. The company is focused on the coffee and quick-service restaurant segment, she said. 

AI startup Numra announces $1.6M funding round

AI startup Numra raised 1.5 million euros ($1.6 million) in May, led by Elkstone Capital Partners. 

The funding supported the launch of the Dublin, Ireland-based startup’s AI finance assistant, Mary, according to a May 16 Numra release. 

“A lot of the value Mary delivers is from workflow automation and is invisible to the user’s eye,” Numra co-founder and CEO David Kearney told BAN. “She can access live customer data from sources like their ERP [enterprise resource planning] and CRM [customer relationship management] systems.” 

Numra continues to enhance Mary and has new features in the pipeline, Kearney said. For example, “We’re about to release a feature where Mary can use Python to transform and analyze large datasets in Excel.” 

Numra was founded in August 2023, according to the release.