London-based Zopa Bank has $95 million in Tier 2 capital to fund its growth, according to the company.
The digital bank provides technology for its customers to gain access to better credit products, to transfer card balances in a way that helps pay down credit and improve their financial well-being.
Chief Executive Jaidev Janardana said the “financing is a clear market validation of Zopa Bank’s financial performance, pointing to strong investor confidence in its growth and in its ability to deliver strong financial performance despite the economic uncertainty.
“As a profitable business, it is also a seal of approval for our responsible and sustainable business model, our strong unit economics and our vision to build Britain’s best bank,” he added.
The company launched a buy now, pay later product this year, has more than $2.4 billion in loans on its balance sheets, has $4.2 billion in deposits, and has an annualized revenue run rate of $305 million since 2020, the company release stated.
Zopa has raised $979 million since its founding in 2005, including a $182 million venture round in February, according to Crunchbase.
Investors include JPMorgan Chase, IAG Capital Partners and Arrowgrass Capital, according to Crunchbase.
Series B round yields $21M for Traydstream
Automated trade document checking platform Traydstream raised $21 million in a series B funding round, led by New York-based fintech investment firm Pivot Investment Partners, according to the London-based company’s Sept. 26 release.
Traydstream plans to use the proceeds toward “tech, sales, AI and product expansion,” Chief Executive Sameer Sehgal, told Bank Automation News.
Sehgal said that, despite uncertain macroeconomic conditions, the company saw “an interest that far exceeded” its expectations and the round was oversubscribed by three times.
“Trade is indelible to all markets and our utility has universal appeal, not only for banks but for corporates, SMEs and the wider trade ecosystem,” Sehgal said. “There is a huge need for automation with less than 1% of the ecosystem currently digitized.”
Traydstream plans to serve more than 160 trading countries around the world in the coming months, Sehgal said. The company has also been doubling its revenue for the past five years and expects that trend to continue for the next five years as well, he added.
Swan nabs $40M in funding round backed by Lakestar
French embedded finance startup Swan has raised $40 million in a series B funding round led by European venture capital company Lakestar.
The company aims to use the money for international growth as it looks to penetrate the Netherlands in the coming months and Italy in early 2024, according to the company’s Sept. 13 release.
“The simplicity and scalability of our BaaS technology is what drives our success,” Nico Benady, chief executive at Swan, said in the release. “The benefits we bring to our customers speak for themselves, with customers seeing up to 200% ROI on projects just three months post-launch, and others able to get up and running with a financial product in a matter of days.”
The company also aims to expand its product offerings to serve industries like travel, insurance and the B2B marketplace, the release stated.
The company has raised $70 million since its founding in 2019, according to Crunchbase. The company’s existing investors include Accel and Creandum, according to Crunchbase.
