This year things are definitely different. The recent market downturn has hit all tech stocks (Nasdaq down 32% this year), but fintech has felt the strongest hit being down more than 42%. Last year's biggest public debuts, Coinbase and Robinhood, are down 86% and 77% respectively since their IPO.Almost no fintech startup is going public this year and we can reasonably expect the rest of the year to look similar.
But instead, M&A is booming. Q1 was the most active quarter ever with over 200 acquisitions. Cash-rich startups, and incumbents, are taking the chance to consolidate the market and buy cheap.
The crypto market turmoil, in particular, is opening the opportunity to acquire distressed or on the verge of bankruptcy startups, especially crypto lenders and exchanges. Crypto lender BlockFi is in talks to be acquired by FTX for $240M, it was last valued at $4.5B in August 2021 and Binanceโs CEO is looking at '50 to 100 deals'.
Who is gonna be next in the acquisition wave? Keep tuned for our fintech Q2 report coming out in the coming weeks for more insights! In the meantime, explore 300+ fintech acquisitions this year. ๐
๐ช๐บ EU agrees on landmark regulation to clean up crypto 'Wild West.' The European Commission, EU lawmakers and member states have agreed on the new law, known as Markets in Crypto-Assets (MiCA), a first attempt at creating a comprehensive regulatory framework for digital assets in the region. - CBNC
๐ One of the most prominent crypto hedge funds just defaulted on a $670 million loan. Before the crypto market's recent fall, the firm had about $3 billion in assets under management. The list of crypto lenders and hedge funds going into bankruptcy is getting longer, and several crypto exchanges are not looking in good shape either. - Washington Post
Latest fintech deals
The largest this week:
๐ฎ๐ณ Mortgage lender Shubham Housing Development Finance Company raised $112M in a round led by British International Investment, LeapFrog Investments and Asian Development Bank and existing investor Premji Invest.
๐ฎ๐ณ Onecard is reportedly raising a $100M Series D at a $1.2B valuation. The round is coming at a challenging time when the Reserve Bank of India (RBI) has taken a shot at Buy Now, Pay Later (BNPL) platforms barring prepaid payment instrument providers from offering non-bank credit lines. The company along with its competition Slice, Uni, Fi, and others will now need to figure out how to adapt.
๐ฌ๐ง BNPL company Zilch has secured an additional $50M in funding, taking the total raise for its Series C to $160M. The extension comes at the same valuation of $2B achieved in November, quite a result in the current climate for consumer BNPL.
Other notable fintech deals from around the globe:
๐บ๐ธ Spot, an insurtech offering on-demand injury coverage, has raised $33M in funding, composed of $25M in equity and $8M in debt. Spot partners with some of the biggest names in the active lifestyle space in the US, including Ikon Pass, USA Cycling, Powder Mountain, USA BMX, National Ski Patrol, athleteReg, and more.
๐ด๐ปโโ๏ธ Spot also covers top pro athletes like snowboarder Travis Rice, cyclist Ayesha McGowan, mountaineer Adrian Ballinger, skateboarder Monica Torres, and skier Julian Carr.
๐บ๐ธ Tesorio a cash management platform that streamlines B2B collections, currency exposure analysis, and cash flow forecasting, raised a $17M Series B round. Tesorio focuses on automation solutions to help customers manage their accounts receivables, which in the current inflationary environment and cash-sensitive environment is top-of-mind for companies.
Using Dealroom "Stats & Insights" you can easily compare fintech funding trajectory with other industries. Fintech has attracted the most funding so far in 2022 with more than $52B, followed by health with $41B and energy with $23.5B.
This is Dealroom's weekly fintech newsletter. Get more industry-specific intelligence on the evolving world of fintech, emerging trends, and game-changing startups. Delivered on Wednesdays.
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