A look at LoanSnap’s woes and which neobanks are on the rise

Welcome to TechCrunch Fintech! This week we look at LoanSnap’s woes, Nubank and Monzo’s positive steps, a plethora of fintech fundraisers and much more!

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The big story

AI Mortgage Startup LoanSnap is in trouble. The company is facing at least seven lawsuits from its creditors and has been evicted from its headquarters in Southern California, leaving employees worried about the company’s future, TechCrunch has learned. LoanSnap has raised about $100 million in funding since its 2017 funding round, including $90 million between 2021 and 2023. Although LoanSnap has not yet closed its doors, according to two employees, the mood within the company is heartbreaking as workers wait for clarification. on the future of the company.

Analysis of the week

Neobanks are having a moment. Or at least some are. UK based neobank Monzo revealed its first annual pre-tax profit. The company reached its first profitability last March, a milestone thanks to its loan product and the UK’s high interest rates. Meanwhile, Brazilian digital bank Nubanque has become the most valuable financial institution in Latin America, surpassing Itaú, as reported by Bloomberg. The NYSE-listed company has also taken its first steps in the field of mobile networks, deploying an eSIM (embedded SIM) service for travelers.

Dollars and cents

Relaya merchant banking and funds management service aimed at SMEs, has closed a $32.2 million Series B round led by Bain Capital Ventures.

Fintech creator Slingshot announced a $2.2 million pre-seed round, with participation from Dorm Room Fund, 1916 Enterprises, Key Partners Group and Vincent Francoeur, former head of web and mobile at Blizzard.

European Mental Illness Insurance Platform I feel raised a $20 million Series B investment co-led by FinTLV Ventures and Korelya Capital.

Before announced $16 million in seed funding to support Stripe and lead the future of integrated payments; Commerce Ventures, Elefund and Fiserv led the round.

Romanian startup FintechOS raised $60 million to help older banks and insurance companies fight neobanks.

Fricha startup that aims to serve as a social financial community for the Gen Z population, has raised $2.8 million in a seed funding round led by Restive Ventures.

Solutions by texta company that lets people pay bills and apply for loans via text messaging, got $110 million.

Based in Saudi Arabia Simplified Financial Solutions Company (SiFi), a spend management platform in the MENA region, has raised $10 million in a seed funding round.

What else do we write

Band, the world’s most valuable fintech startup, announced on May 31 that it would temporarily move to an invitation-only model for signing up new accounts in India, calling the move a “difficult decision” as it evolves in the country’s evolving regulatory landscape. The startup, which competes with YC-backed Cashfree and Razorpay in the country, will now focus on supporting a number of businesses, particularly those focused on international expansion.

Indian conglomerate Trust group is making its boldest move yet towards financial services with the launch of JioFinance, an app that aims to be a one-stop-shop for digital payments, loans and UPI insurance.

Also:

German financial regulator ends anti-money laundering cap on N26 listings after $10 million fine

Ambani’s Reliance fires opening salvo in fintech battle, launches JioFinance app

Very interesting titles

Savings app CEO says 85,000 accounts blocked in fintech collapse: ‘We never imagined a scenario like this’

Robinhood gains up to $1 billion on share buyback plan

Robinhood rolls out crypto API for US traders

Klarna CEO faces backlash after saying AI allows marketing team to do more work, “half the size of last year”, saving millions.

Deel taps Alviere to help global companies pay their U.S. workers

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