The Paypers Global Fintech Investments Analysis: Q1 2024

In a bid to maximise value and decrease costs, while also mitigating financial risks and enhancing supplier collaboration, spend management solutions have increased in use, with companies working towards making their financial processes more efficient. As a result, investors started to disburse their funds towards providers of such solutions, aiming to allow them to expand their operations, increase their reach, and develop more solutions.
One of the first investments of 2024 was directed towards Solva, with the company raising a USD 20 million investment to further expand its digital financial products for micro, small and medium-sized enterprises and increase job creation in Central Asia. Additionally, the company intends to use a percentage of the funding to support its ongoing transition, boosting its capacity and financing outreach. Soon after, ZILO received nearly USD 31.64 million in a Series A funding round. It is directed towards accelerating product development, increasing user acquisition, and expanding ZILO’s position in the fintech sector. Following this, Vertice announced a USD 25 million Series B round, with the company planning to broaden its service offerings and assist more clients in managing their SaaS and cloud expenses.
ID Finance obtained USD 150 million in debt financing in February 2024. The deal is set to support the expansion of Plazo, ID Finance’s primary financial wellness app and a component of its strategic initiatives. Moreover, at the beginning of March 2024, wagely received USD 23 million in a funding round, aiming to offer its customers enhanced solutions, while also extending its services in Indonesia and Bangladesh. 

Supported by the advantageous regulatory environment, the European fintech sector saw a considerable increase in funding in the first quarter of 2024, with investment firms focusing on providing their capital to companies offering Open Banking, digital banking, payments, and fraud prevention solutions. Even if firms operating in Switzerland, Spain, France, and the Netherlands secured substantial capital injections, the UK dominated fintech funding in Europe, receiving nearly USD 1 billion until the Middle of March 2024.
Following this trend, 10x Banking secured a new funding round, aiming to optimise and accelerate the development of the banking industry via secure technology and enhanced financial solutions. Shortly after, Yoti received nearly USD 16 million in debt funding from HSBC as well as approximately USD 9.5 million from existing shareholders. The total amount is expected to support Yoti in achieving profitability and continuous growth. Later in January 2024, Ozone API raised approximately USD 10.68 million in a Series A funding round, with the firm planning to continue its global expansion and invest in its team. Moreover, Kriya received nearly USD 64 million in a funding facility to double down on its PayNow and PayLater Embedded Credit and Payments offering for B2B retailers and marketplaces.
The beginning of February 2024 saw Tuum raising nearly USD 26.86 million in a Series B financing round, with the company aiming to further expand its international presence and target additional territories in the DACH region, Southern Europe, and the Middle East. At the end of the month, Monzo finalised a deal of USD 431.26 million planning to allocate the funds towards relaunching its services in the US, as well as developing additional services and products. During the same period, Napier AI obtained a significant investment intended to advance the company’s growth trajectory, reflecting the evolving landscape in the KYC and AML sectors.

Furthermore, at the beginning of March 2024, Griffin raised USD 24 million in a funding round, with the company launching as a fully operational UK bank and aiming to scale its operations and enhance its overall infrastructure for new and existing clients. Additionally, PPRO obtained approximately USD 93 million in a funding round, intended to accelerate its development in key markets and improve its global network of payment methods. Shortly after, AccessPay concluded a USD 24 million funding round in a combination of equity and debt, with the resources being set to drive profitable growth. March 2024 also saw Flagstone receive USD 136.60 million investment in a bid to accelerate its development process, with the round merging primary and secondary investments. At the end of the month, Global Screening Services (GSS) received USD 47 million in a Series A2 funding round, with the investment following its transition from the development phase to the operational one as it prepares to go live with its clients.
In addition to the UK’s increase in funding rounds in the banking and fintech sectors, investors also directed their capital towards companies operating across Europe. For example, Evrotrust raised nearly USD 3.5 million, planning to leverage the investment to solidify its position as a participant in the European digital identity market. Also, Finom received approximately USD 54 million in a Series B equity funding round to solidify its position in the industry and enable its expansion across the entire Eurozone by 2025. Shortly after, Embat secured nearly USD 16 million in a Series A funding round, intending to allow companies to set up an end-to-end treasury system more efficiently.
Several companies secured funding in March 2024, including Eye Security, which received USD 39 million in a Series B round to progress its commitment to protect businesses across Europe. In addition, Solaris obtained approximately USD 104 million in a Series F funding round, plus a financial guarantee of up to USD 108.52 million capital equivalent. The company plans to onboard the ADAC credit card programme and solidify its core capital, while also advancing the resilience of its platform. Shortly after, Flowpay secured nearly USD 2.3 million in a seed round, aiming to expand its operations beyond its home country and improve its technological capabilities. Following this announcement, fintech nsave secured USD 4 million in a seed funding round to expand its product suite and provide banking solutions for individuals residing in regions with unstable banking sectors or facing inflationary pressures.
Organisations working towards improving the payment landscape throughout Europe also obtained significant investments during the first quarter of 2024. For example, in January 2024, Bumper closed a USD 48 million Series B funding round to increase its reach and technology. Shortly after, Rivero raised USD 7 million in a Series A funding round in a bid to accelerate its growth across additional markets and increase its product development and workforce. Additionally, Detected announced a new funding round of USD 2.5 million. Confirming the progress of the fintech, the funds are set to be leveraged to support the next phase in its growth.
Moreover, Billink raised nearly USD 32 million, with the payment provider aiming to leverage the funds to expand its services to the largest 50 webshops in Benelux, enter the German market, and continue its efforts to make online purchases safer for its users. Also, Mondu obtained approximately USD 32.54 million in a debt financing round, with the capital being utilised to further its expansion across Europe and assist its development strategies.

Despite sparking investors’ interest in the fourth quarter of 2023, cryptocurrency and blockchain sectors saw a decrease in funding during Q1 2024. In the face of the current environment, organisations still receive capital injections, with them aiming to leverage the funds to advance their operations. For example, Kiln announced the successful completion of a USD 17 million funding round in January 2024, with the company planning to expand globally and establish its APAC headquarters in Singapore by the end of Q1 2024. Following this announcement, Sygnum obtained over USD 40 million in its ongoing Strategic Growth Round to assist its growth into new markets and improve its suite of services.

In trend with the last quarter of 2023, the North American region drew in a substantial percentage of worldwide investments, with companies consolidating their operations, expanding their product suites, and increasing their footprint outside their home country.
Most of the capital infusions were directed towards US companies, with Aqua Security being one of the first of 2024 to secure an investment. The company raised USD 60 million in a bid to reduce and combat cloud-native attacks. Shortly after, Panacea Financial obtained USD 24.5 million in a Series B funding round to expand its team with experts in technology, financial services, and healthcare. In addition, Digital Onboarding received USD 58 million in growth capital to further advance its digital engagement platform. Also, Incognia secured USD 31 million in a Series B funding round, with the company intending to facilitate the ongoing development of its digital identity signals and expand into new regions and verticals, including consumer internet, financial services, and ecommerce across North America, Europe, and EMEA.
Considering the rise in the use of AI, as well as its capabilities, fintechs providing AI-based solutions piqued investors’ interest, with Briq raising USD 8 million in an extension round to expand into new geographies, including the Middle East, Asia, and parts of the non-English emerging markets in Europe. However, one of the largest investments of Q1 2024 was directed towards Pagaya which closed a USD 280 million credit facility to support its future growth initiatives. 

Other companies delivering banking and fintech services that acquired substantial capital injections include Monite, which secured nearly USD 6.5 million in seed funding to optimise its Embedded Finance solutions and expand in the US; Zum Rails, which raised USD 7.78 million to grow its all-in-one solution; as well as Coverdash, which announced a USD 13.5 million Series A funding that is set to advance its embedded partner network further and broaden its insurance carrier panel. Also, at the beginning of March 2024, Synctera raised USD 18.6 million in an extension of a Series A funding round to reinforce its initiatives and expedite progress with enterprise clients.
As North Americans increased their use of digital payments, companies focused their attention on improving their capabilities, enhancing the customer experience and meeting the demands of their users. For example, Zip closed a USD 225 million refinancing agreement that is set to support the growth of its US receivables. In addition, Cart.com obtained USD 70 million in debt facility in January 2024, with the company planning to accelerate its development process and optimise how multichannel merchants and traders sell and grow their products. During the same period, DailyPay received USD 175 million to support its expansion and product development efforts. Soon after, Kashable closed a USD 25.6 million round in a bid to expand financial wellness solutions for employees, while also fuelling its growth.
Furthermore, the end of February 2024 saw Bilt Rewards concluding a USD 200 million round which is set to consolidate its services and develop its mortgage payment rewards. Also, Yuno secured USD 25 million, intending to utilise it to advance operations. Additionally, Coro raised a USD 100 million Series D funding round in a bid to drive growth and augment cybersecurity for SMBs.

Despite seeing the lowest level of funding in Q1 2024, Latin American fintechs still secured USD 579 million in seed via growth-stage rounds, with the fintech space securing the majority of it. The rise in fintech funding can be attributed to the increase in the use of digital payments for everyday purchases, while the reliance on cash continues to decline.

Throughout February 2024, two other companies secured funding from investors, including Bold, which received USD 50 million in a Series C funding round, aiming to leverage the capital to expand its product suite beyond payments. In addition, Simetrik announced a USD 55 million Series B funding round, with the firm planning to reinforce its role in transforming the financial sector and expanding its global reach.
The end of March 2024 saw Addi obtaining USD 86 million in a funding round that included both equity and debt financing to solidify its presence in Colombia and grow its capabilities. Moreover, Koin secured a USD 7.21 million investment in a bid to finance customer credit operations.

Fintech funding in Asia saw a substantial 56% drop in 2023, following the downtrend which was observed in 2022, as per CB Insights’ report. The first quarter of 2024 stuck to a similar pattern, with fewer companies receiving funding from investors. Most of them focus on digital payment solutions, SME services, and ecommerce products, and intend to leverage the capital to scale their product offerings and solidify and expand their operations. Among the analysed firms is Uzum, which raised USD 114 million in funding and secured its unicorn status with a post-money valuation of over USD 1 billion. Coming as an addition to Q4 2023’s four fintech unicorns, the company plans to advance the region’s IT and logistics infrastructure, while also funding its own BNPL service.
The beginning of February 2024 saw Oobit raising USD 25 million in a Series A funding round, with the company planning to open up the payment capability to third-party wallets, which is set to transition it into a non-custodial crypto payments app.

Among the companies providing banking solutions that secured funding is also UnoAsia, which received USD 32.1 million in a pre-series B round, aiming to scale its products and add new tools for MSMEs. In March 2024, Perfios obtained USD 80 million in a bid to strengthen its business outside its home country and explore inorganic growth opportunities.
Investors also directed funds towards payment and ecommerce solutions providers, with BuyEazzy securing USD 4.25 million in January 2024 in a Series A funding round to accelerate its overall expansion strategy and provide its services to over 40 cities in the region. In addition, FundPark received a USD 250 million private loan, with the fintech aiming to increase exposure to growth and opportunity in greater China’s new economy sectors. The beginning of March 2024 also saw Fairbanc receiving USD 13.3 million in debt financing in a bid to expand operations in Indonesia.

Despite not reaching the levels of the previous financial periods, investments in the fintech sector of the MENAP region continued throughout the first quarter of 2024. According to recent data, startups raised USD 429 million during Q1 2024 through 129 investment rounds, with most of the capital being funnelled towards SaaS firms, including Kema, which raised USD 2 million in a pre-seed round. The UAE-based fintech plans to optimise its SaaS platform while also supporting the SME segment in the region. Additionally, KARTY completed a seed funding round amounting to over USD 2 million. The capital injection is intended to allow the firm to improve the overall Qatari market, while also enabling it to launch its services after final approvals and licencing.
Furthermore, investors channelled their funds towards digital payment providers, including Cleva, which raised USD 1.5 million in pre-seed funding in a bid to develop a banking platform for African individuals and businesses for cross-border payments in USD accounts. Shortly after, Zeal obtained USD 4 million, with the firm planning to use the funds to increase its footprint in the wider MENA market. The end of February 2024 saw MoneyHash raising USD 4.5 million in a seed funding round aimed at improving the fintech’s technology and expanding across the region.