Deals and Dollars: Billions pour into neobanks, established fintechs

Several established fintechs in key global locations saw a massive cash influx this week, and an announcement of an expanded partnership between Citizens Financial Group and Microsoft brings buy now pay later (BNPL) services to U.S. consumers. Nubank Brazilian neobank Nubank led the news this week when its initial public offering (IPO) raised $2.6 billion, selling 289 million shares at $9 per share. The company now has a $41 billion valuation based on its outstanding shares, Bloomberg reported. Nubank has raised a total of $4.9 billion in 13 funding rounds, according to Crunchbase. [caption id="attachment_220585" align="alignright" width="325"] Photo courtesy Nubank[/caption] The Sao Paulo-based company has offices in Buenos Aires, Argentina; Mexico City; Bogota, Colombia; and Berlin, in addition to its Brazil headquarters. Nubank claims some 48.1 million members in Brazil, Mexico and Colombia, making it one of the largest digital banking platforms in the world. The neobank said it is adding some 2.1 million members per month, offering products including credit cards, personal bank accounts, small and midsize business accounts and personal loans. Shares of Nubank [NYSE:NU] closed Friday at $11.85, up 14.83% from market open. Monzo Bank London-based challenger bank and digital marketplace Monzo , also known as Monzo Bank, raised $475 million in a series H funding round. Global law firm Taylor Wessing advised on the round, noting there will be a second closing in the coming weeks that is expected to bring the round above $500 million and Monzo's valuation to $4.5 billion. Monzo is eyeing growth with the funds raised. As part of its upcoming expansion into the U.S., the neobank has partnered with $1.2 billion Sutton Bank headquartered in Attica, Ohio, to provide its mobile banking app and services, and is now collecting waitlist names for the launch. Monzo, founded in 2015, has raised a total of $1.1 billion over 21 funding rounds, according to Crunchbase. Mambu Berlin-based Mambu , provider of a software-as-a-service (SaaS) bank lending and deposit solution, this week raised $265.3 million in a series E funding round, bringing its valuation to $5.5 billion. The company, founded in 2011, has a footprint in 65 countries, with a total of more than 53 million end users. The fintech said that it will use the funding to continue expanding its footprint and to accelerate new offerings for its banking platform, according to a release. Mambu's customers include $73.6 billion Banco del Estado de Chile , run by the Chilean government, and $1.7 billion Solarisbank , which offers a banking-as-a-service platform and has a German banking license. Its technology is used both in "creation of new fintechs as well as the migration of existing financial institutions onto more modern tech stacks," Mambu said in its funding announcement. Tipalti Cloud-based payables automation platform provider Tipalti , headquartered in San Mateo, Calif., closed a $270 million series F funding round this week, bringing its valuation to $8.3 billion. The company is looking to accelerate development. "This latest investment will enable Tipalti to add more to our product lines and capabilities in the next 18 months than we have over the past 10 years combined," Chen Amit, co-founder and chief executive officer, said in a release. Tipalti is processing more than $30 billion in payments annually, which is 120% year-over-year growth, according to the release. Founded in 2010, the platform provider has raised a total of $565 million in nine funding rounds, Crunchbase reports. Torq Portland, Ore.-based Torq , provider of a security automation platform, this week closed a $50 million series B funding round. The company will use the funding to fuel an expansion among enterprise customers and managed security service providers, according to a release. The company's no-code platform connects security infrastructure and communication tools, automating workflows across these systems. It can be deployed in the increasingly complex distributed environments that IT security teams must address, integrating with existing security tool sets and designed to scale as needed. Torq was founded in 2020 and has raised a total of $78 million in four funding rounds, according to Crunchbase. Citizens and Microsoft The $187 billion Citizens Financial Group will provide its Citizens Pay BNPL financing for the Microsoft Store as part of an expanded partnership with the technology giant. U.S. customers can now opt for Citizens Pay financing on Microsoft subscription services as well as hardware and accessories like Surface Pro computers and Xbox consoles. The BNPL option uses a line-of-credit payment structure and lets consumers check eligibility with no impact to their credit score. Those who move forward go through underwriting, which includes a full credit check, but once approved they can continue making purchases without additional credit inquiries. "The Citizens Pay solution uses sophisticated credit analytics that allow us to evaluate creditworthiness and offer a decision nearly instantly," Andrew Rostami, president of Citizens Pay, told Bank Automation News . The new BNPL program builds on Citizens' 2019 partnership with Microsoft, which embeds Citizens' financing for Xbox All Access and is available at Best Buy, Target, Walmart and GameStop. Dollars and Deals is a weekly Bank Automation News column that features fintech funding rounds and the technology dealings of financial institutions. Submissions may be sent for consideration to editorial@royalmedia.com . Bank Automation Summit, taking place March 1-2 in Charlotte, N.C., is the first and only event to focus solely on automation in banking. The event will feature the brightest minds from across financial services on intelligent automation strategies and deployment. Learn more and register for Bank Automation Summit 2022 .

Deals and Dollars: Billions pour into neobanks, established fintechs

Brazil's Nubank leads with $2.6B IPO as other fintechs close big funding rounds

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