Fintech Funding: Fintechs raise $10.5B in Q2

Signs of a rebound in global fintech funding surfaced in the second quarter. Globally fintechs raised $10.5 billion in the second quarter of this year, up 2% year over year, according to think tank CB Insight ’s Q2 Fintech Funding report published this month. [caption id="attachment_221255" align="alignright" width="300"] Courtesy/CanStock[/caption] The U.S. market captured 60% of all funding volume during the quarter, reflecting an investor preference for U.S.-based fintech opportunities, the report stated. B2B fintechs and digital wealth management fintechs attracted the most funding, with M&A activity jumping 29% YoY to 205 deals during the quarter. The following fintechs have raised funds in the past month: BNPL company Two raised $19.4M in series A The Oslo, Norway-based B2B buy now, pay later service provider Two raised $19.4 million in its series A funding round led by Sequoia Capital, Antler and Alliance Ventures among others, according to the company’s July 11 release. The company aims to use the funding for developing AI, expanding operations for global clients and developing an omnichannel experience, Two co-founder and Chief Technology Officer Joachim Kruger told Bank Automation News . “We're scaling our AI advantage through Frida and Delphi, our proprietary risk engines,” Kruger said. “We've built systems that assess €100,000 ($116,281) credit decisions in milliseconds while maintaining loss rates very low and approval rates around 80%.” Major enterprises are licensing Two’s decisioning infrastructure to transform their credit operations and automate collections, Kruger said. “Tier 1 banks are licensing our risk-as-a-service platform to modernize their SME lending.” “We're deploying Two across hundreds of physical locations throughout the Nordics, recognizing that significant B2B volume still happens in-store,” Kruger said. “When a contractor needs $57,000 in materials today, they shouldn't face different payment experiences online versus in-store.” The company’s expansion in the United States started last year and has “exceeded expectations,” Kruger said. “From market entry to 20% of revenue in under three months.” The robotics and automation sector has emerged as a particular stronghold, where component values routinely exceed $100,000 and traditional financing moves too slowly for modern supply chains, he said. April raises $38M in series B Tax management platform april raised $28 million in a series B funding round led by Team8 and Nyca Partners, according to the company’s July 23 release. “This raise allows us to build on the core infrastructure we’ve established and accelerate product development in high-demand areas,” an april spokesperson told BAN . “We’re investing in new capabilities that address a broader range of tax needs, such as capital gains, retirement planning and small business ownership.” The New York-based company is also working on expanding its partner ecosystem across financial services to bring embedded tax solutions to more users and scaling its go-to-market teams to support this growth, the spokesperson said. “Our focus is on deepening our partner footprint, scaling our user base and expanding the scope of tax scenarios we can support,” they said. “After processing hundreds of thousands of returns through over 50 partners last season, we’re aiming to significantly grow that reach.” The company is embedding AI-driven assistants in its platforms to provide personalized and accurate outcomes in real time across a wider range of tax needs, the spokesperson said. BetterComp secures $33M in series A Compensation software firm BetterComp raised $33 million in series A funding from Ten Coves Capital among others, according to the company’s July 22 release. The capital will support BetterComp’s plans to expand its AI-driven platform, scale operations and move into adjacent product categories, a spokesperson told BAN . The company is investing in three key areas: Product development — shipping faster and tackling big roadmap items; Customer success — creating more proactive, hands-on support; and Infrastructure — scaling to meet demand with speed and reliability. “We see an opportunity to expand that support to smaller organizations for which our product is currently a bit over-engineered, while we intend to build on our functionality and continue to expand the ways in which we support enterprises,” he said. “Working with an investor like Ten Coves that focuses on helping founder-led organizations gives us access to outside expertise and perspective that will help as we continue to grow,” the spokesperson said. iCapital raises $820M in PE funding round Alternative investment service provider and wealth management company iCapital has raised $820 million in a private equity funding round from T. Rowe Price Associates, among others, making it the biggest funding round of the year, according to the company’s July 10 release. “ICapital will pursue accretive acquisitions that complement our organic growth — opportunities that improve the client experience, take more friction out of the ecosystem and support continued geographic expansion,” the spokesperson told BAN . The New York-based company opened a new office in Australia this year and plans to launch one in the Middle East later this year, they said. “With 16 offices globally — half outside the U.S. — we're seeing strong international demand, with over $40 billion in assets from non-U.S. investors alongside growing interest in our technology and data solutions from wealth and asset managers worldwide,” the spokesperson said. Bilt raises $250M in venture round Credit card rewards company Bilt Rewards has raised $250 million in a venture funding round from General Catalyst, GID and United Wholesale Mortgage , according to the company’s July 10 release. The New York-based company is restructuring its business model with this funding. For example, it will open its rewards offerings to all housing categories, including mortgage, and changing its banking partnership from Wells Fargo to Cardless , the release stated. With the recent funding round, Bilt has reached a valuation of $10.5 billion, according to the release and will use the capital to develop AI and gain market share. Bilt has raised $813 million since its inception in 2021 and boasts investors like Kairos HQ, Greystar and Wells Fargo, according to data analytics company Crunchbase. Editor’s note: All amounts have been converted to U.S. dollars.

Fintech Funding: Fintechs raise $10.5B in Q2

Bilt, BetterComp, iCapital, Two, april raised funds this month

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Fintech Funding: Fintechs raise $10.5B in Q2

Bilt, BetterComp, iCapital, Two, april raised funds this month

Inside Bluevine’s strategy for developing AI-driven financial adviser and insights tool

J.P. Morgan on agentic AI in embedded payments

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