Voice of the Industry

The Paypers Global Fintech Investments Analysis: Q3 2023

Thursday 9 November 2023 09:52 CET | Editor: Sinziana Albu | Voice of the industry

The Paypers looked into the most relevant investments that were announced during Q3 2023 and discovered an overall preference for digital banking, fintech solutions, lending, and fraud prevention strategies.

According to the `Geo Quarterly Report: FinTech US - Q3 2023` of Tracxn, September has been the least funded month of 2023, after February. Following the global economic slowdown, the increasing interest rates, as well as the banking crisis that swept throughout the year, and the effects that followed, multiple investors found it more difficult to make investment decisions. Still, while US-based fintechs saw a 5% drop in funding QoQ, they continued to drive a large portion of global fintech funding, as the US accounted for almost half (47%) of all quarterly fintech funding in Q3’23.

On a global scale, the State of Fintech Q3’23 Report by CBInsights reveals that, in the third quarter of 2023, global fintech funding demonstrated relative stability, registering a modest decline of 3% when compared to the previous quarter. During this period, global fintech funding amounted to USD 7.4 billion.

In this context, companies still needed to demonstrate a certain degree of profitability and development prospects in a clear and detailed manner to catch the attention of investors and make them believe in their cause. Therefore, multiple firms focused their strategy on expanding their operations and optimising customer experiences either by streamlining their operations, tapping into AI technologies, or adding new features.


Although fintech companies continue to face challenges such as data security, legacy systems, and regulation, the possibility of funding is still present as the domain remains important and attractive for investors. The fintech industry stands full of potential, as it focuses its efforts on improving key areas such as customer-centric value propositions, digitalisation, and technologies to anticipate the needs of its client base.

The Paypers Global Fintech Investments Analysis: Q3 2023

One of the biggest investments of Q3 2023 revolved around fintech TP24, which announced a raise of USD 368 million in debt funding, aimed at providing lending solutions to SMEs in the UK, the Netherlands, and Australia. With the same focus on small businesses, StoreConnect raised USD 9 million in a seed round to address the challenges SMBs face within the ecommerce landscape.

Several businesses leveraged their newly received funds to improve their overall suite of products, as well as design and deliver new solutions to their customers. For example, Brazil-based fintech Nomad used its USD 60 million to expand its investment platform and launch new services, including credit cards.

Moreover, the finance automation platform Ramp also raised USD 300 million in a Series D funding round, which was spent on its product development and expansion into adjacent categories. India-based fintech Perfios secured USD 229 million in a Series D funding round, aimed at its global expansion in the US and Europe. At the end of August 2023, India-based Zepto secured USD 200 million and became India’s first unicorn of the year. 

In addition, France-based Defacto announced the raise of USD 178 million, money used to improve the company’s development process and product suite. Similarly, Germany-based fintech MODIFI secured a USD 100 million debt facility in order to optimise its growth efforts. 

The Paypers Global Fintech Investments Analysis: Q3 2023

At the beginning of September 2023, Momnt received USD 15 million in capital raise, which the company used to optimise its payment and lending solutions for businesses. Later in the same month, UK-based Curve raised USD 71.2 million in a funding round in order to expand its offerings, partnerships, and solutions, as well as to deliver an improved customer experience. 

Spain-based Payflow also announced the rise of a USD 21 million funding round, following its decision to sign an agreement with BBVA Spark in a bit to expand and develop its financial super app. Later in September, UK-based Apron raised USD 15 million in a Series A funding round, intending to improve the way small companies process invoices, as well as to expand their business and launch new products.

Other large investments were focused on product development and partnerships, an example being US-based Clair, which secured USD 175 million in a bid to launch an on-demand pay service as a customer lending programme backed by Pathward Bank. Later in August, Citi made an investment in the Peru-based fintech Rextie, while also incorporating its FX technology into the suite of currency exchange services. In the same month, Rightfoot unveiled a zero-login consumer-permissioned data product named Connect Magic, as well as a USD 15 million Series A funding round. 


Digital Payments

As multiple businesses in the industry operate in several countries around the world and accept several payment methods, they also need to be wary of any issues, risks, and difficulties that might arise and jeopardise their operations. Furthermore, as digitalisation is accelerating across the market, investors are attracted to new, modern, and efficient payment options, which are expected to provide customers with an improved payment experience. 

The Paypers Global Fintech Investments Analysis: Q3 2023

Thunes, a Singapore-based B2B payments platform, is one of these companies that are always looking to create a modern, up-to-date payment experience. Therefore, the USD 72 million it secured in its Series C in July 2023 helped the firm to address the inefficiencies of moving money internationally, as well as to create a new payment system.

In a commitment to bridge traditional finance and crypto, US-based platform Orbital raised USD 6.4 million in August 2023. Later in September, South Africa-based Revio raised USD 5.2 million in a seed round, with a plan to strengthen its efforts in tackling failed payments. 

Moreover, US-based Splitit secured a USD 50 million growth commitment which was leveraged to accelerate its development. Similarly, Switzerland-based B2B fintech platform GenTwo announced the raise of USD 15 million in a Series A funding round in order to expand internationally and develop its solutions. 

Financial Inclusion

During Q3 2023, there was a high interest in initiatives focused on financial inclusion, with companies focusing on expanding their services in multiple areas around the world, especially to underserved customers. 

The Paypers Global Fintech Investments Analysis: Q3 2023

For example, at the end of July 2023, Mercury Financial closed a USD 200 million debt facility to develop its credit card business for middle-class American users. Later in August, Nigeria-based Moove closed a USD 76 million round, aiming to develop and optimise financial services for mobility gig workers. 

Similarly, Kenya-based Kotani Pay received USD 2 million to simplify cross-border remittances in Africa with the use of stablecoins and blockchains. 

Open Banking, Embedded Finance, and BaaS

In Q3 2023, Open Banking and Embedded Finance represented important trends in the financial service industry, offering multiple reasons for investors to be interested in delivering their funds to these sectors. Moreover, the fintech landscape has been optimised through Embedded Finance and BaaS, providing convenience and accessibility to customers, beyond traditional banking and financial institutions. 

The Paypers Global Fintech Investments Analysis: Q3 2023

At the beginning of July 2023, Czech Republic-based embedded financing platform Lemonero raised an extended seed round and growth capital, which was focused on its development in the region of Europe. Similarly, India-based Open Banking app OneStack raised USD 2 million in funding in the same period, aiming to accelerate its development process, as well as its team expansion and the establishment of new offices. 

Later in the same month, the Embedded Finance platform Solaris SE announced the rise of its Series F funding round, which consisted of USD 40 million. The investment was set to strengthen and improve the company’s governance and compliance. 

At the beginning of September 2023, Nigeria-based Banking-as-a-Service provider Anchor announced the raise of USD 2.4 million – funds used to expand its product offering. 

An investment in Swan was utilised in a similar way, as the company reinforced its enterprise-focused approach. The Series B funding round, consisting of USD 39.5 million, was announced in the same month and was channelled towards Swan’s ongoing international expansion efforts, as well as the introduction of new product lines customised for larger enterprises.

Banking and digital banks 

During Q3, the banking industry focused on digital development, with multiple companies and financial institutions aiming to meet the digital banking requirements and expectations of customers.

The Paypers Global Fintech Investments Analysis: Q3 2023

Following this trend, at the beginning of July 2023, Italy-based illimity Bank partnered with Engineering Group, with the consideration of a USD 59.3 million funding round being included in the agreement. The companies used the investment to provide small businesses and retail banking segments with new digital banking products. In the same month, Bank Asia announced its decision to sponsor a proposed digital bank for the development of digital services and cashless transactions. The funding round consisted of around USD 1.1 million.

Afreximbank and CDB focused on the development of small and medium-sized enterprises (SMEs), announcing a USD 400 million loan to support African businesses involved in extra and intra-African trade, as well as the ones engaged in the productive sector of the Afreximbank Member States

In addition, multiple banks and financial institutions leveraged their funding to accelerate their development processes. For example, the Bank of India used its USD 61 million loan to launch three centres for startups, with a dedicated plan to have 12 such centres.

The Bank of London announced the formal application for an EU banking licence in July 2023, with a USD 213 million investment and the plan to hire 300 more employees in Luxembourg by 2023. 

In September 2023, Zopa announced the raise of USD 92 million in Tier 2 capital, for its growth and development mission. Later in the same month, Mexico-based neobank albo secured USD 40 million in a Series C funding round, aiming to accelerate its overall development procedure, as well as to provide an improved fintech platform for its clients. 

The Paypers Global Fintech Investments Analysis: Q3 2023

International expansion represented an important factor for companies as well, with multiple banks and FIs using their funding rounds to deliver their services to multiple customers around the world.  

Netherlands-based neobank bunq announced the raise of an additional USD 47.5 million in growth capital, with thea focus on investing the money in its international expansion. Similarly, at the end of August 2023, J.P. Morgan announced the increase of its stake in Brazil-based digital bank C6 to 46%.

In the same manner, multiple investments in Q3 2023 were leveraged in the process of developing and launching new services and digital solutions, intending to meet the expectations and requirements of the industry.

At the beginning of August 2023, HSBC invested USD 35 million into Tradeshift to launch a joint-owned business set to focus on Embedded Finance solutions, as well as financial services applications. Later in the same month, Germany-based Ivy secured USD 20 million in a Series A funding round, aiming to use the sum to develop a network for instant bank payments. 

Another such example is given by the UK-based Cynergy Bank, which received a USD 24.5 million Tier 2 capital facility to develop the Cynergy Bank and the Cynergy Business Finance. 

At the beginning of September 2023, the EY organisation announced its partnership with Microsoft to provide its clients with a new Assurance technology platform, as part of a USD 1 billion investment programme. In the same period, US-based Flex raised USD 120 million in equity and debt funding rounds, planning to launch a new finance super app for business owners.


Lending, credit, investing

The development and optimisation of the lending industry gained some popularity in Q3 2023, with companies and firms receiving investments to improve and digitise their suite of solutions, accelerate their overall growth process, as well as provide customers with new products.

The Paypers Global Fintech Investments Analysis: Q3 2023

In July 2023, US-based crypto asset-focused investment firm CoinFund closed a USD 158 million Seed IV Fund LP, aimed to support pre-seed and seed stage investments in new funding teams across the Web3 ecosystem. Similarly, US-based credit card and financial technology company Petal secured a USD 200 million debt facility at the beginning of August 2023. The firm also announced the raising of additional debt and equity funding, while remaining focused on expanding its credit card program. 

A USD 100 million debt facility was raised by the Mexico-based digital financial services platform Klar in the same period. The company was set to use the investment to expand its credit products in the North American country.  In September 2023, Vero Technologies was set to utilise its USD 8.5 million Series A funding round to accelerate the growth of its LaaS offering.

In August 2023, Vista Equity Partners obtained a USD 5.3 billion private loan to focus on refinancing the debt of Finastra. The arrangement aimed to enable Finastra to leverage this preferred equity to cover interest expenses. 

Later in the same month, EIF granted more than USD 42 million to SME Finance for the development of micro-businesses in the Baltics, Finland, and the Netherlands. Similarly, Singapore-based Funding Societies secured USD 27 million in debt funding, focusing on bridging the credit gap for SMEs in the region of Southeast Asia. 

Some companies focused on developing new lending and investing services as well. Cryptocurrency exchange Coinbase announced a plan in the same month to launch a new lending platform aimed at large institutional investors. The firm was set to introduce a digital asset lending platform, backed by a total of USD 57 million in funding. 


Cryptocurrency, Metaverse, and digital asset custody

Even though the cryptocurrency industry has suffered some serious blows in 2023, it still managed to attract funds as companies leveraged the capabilities of blockchain and ramped up their expansion efforts. 

The Paypers Global Fintech Investments Analysis: Q3 2023

France-based Treasury Management fintech Fipto raised USD 16 million in seed funding to optimise its platform and meet the needs of customers and partners as it adopted blockchain technology. According to the firm, this procedure extends beyond its initial association with cryptocurrencies and encompasses a variety of sectors, such as retail, supply chain management, and financial services. 

Additionally, some companies focused on streamlining and expanding their services on a global scale. For example, the US-based crypto custodian BitGo secured USD 100 million in a Series C funding round, for the execution of several strategic acquisitions, as well as expanding the reach of its solutions around the world. 

Later in September 2023, US-based financial operating system Mesh announced the raise of USD 22 million in a Series A funding round to develop new tools for payouts, payments, and deposits.

Focusing on the development of the Metaverse, at the beginning of July 2023, Italy-based Stella group venture incubator Dpixel selected four startup companies for the Metaverse 4 Finance incubator programme. The venture incubator included a total investment allocation of USD 3.2 million, and it was set to optimise the growth of the startups as well as the development of inclusive and secure services in the field of metaverse applicable to finance.

Cybersecurity, AML, and fraud prevention

With the rising trend of artificial intelligence and digitalisation, as well as the expansion of generative AI accelerated across industries, fraudsters can leverage AI and stolen personally identifiable information to create branches of credible digital identities. In this context, some investors focused their funding efforts on the process of fighting fraud and other online threats. 

The Paypers Global Fintech Investments Analysis: Q3 2023

In September 2023, US-based fraud prevention company Deduce announced the raise of a USD 9 million funding round, aiming to prevent AI-generated identity fraud. Similarly, cybersecurity company Legit Security closed a USD 40 million investment round to address the threat of AI and Large Language Models (LLMs).

At the same time, artificial intelligence was also acknowledged as a tool to protect and optimise the growth process of companies. For example, UK-based Quantexa announced an investment of USD 155 million in the artificial intelligence industry in a bid to accelerate its development for the next three years.  

Multiple companies used their new funds to expand their suite of solutions worldwide. For example, UK-based cybercrime detection service provider Netcraft raised USD 100 million in July 2023 to support its worldwide expansion. 

Cleafy announced its USD 10.6 million funding round in September 2023, planning to use the additional capital to expand its platform to new markets and institutions around the world. Similarly, ThetaRay raised USD 57 million to provide new business opportunities to financial institutions and banks while accelerating its own international expansion.

Prioritising the fraud prevention process, Norway-based Strise secured USD 10.6 million in an effort to reduce financial crime with the use of AML automation. By further developing its end-to-end AML product and expanding internationally, the company focused on solidifying its place in reducing fraud and ensuring a more transparent and safe business sector. 

Identity services

As organisations and firms choose to operate in a vast and interconnected network of suppliers, partners, and customers around the world, concerns arise for issues such as identity fraud, data security, and privacy. From this point of view, in today’s business landscape and challenging economic environment, investments in identity services are increasingly important.

The Paypers Global Fintech Investments Analysis: Q3 2023

In August 2023, UK-based Suade committed USD 20 million in a bid to expand its footprint in the US and Canada, following the struggles and the reverberations caused by the banking failures   that took place throughout the year. 

Later in the same month, US-based SpyCloud closed a USD 110 million growth round to drive global expansion and prevent authentication bypass while also supporting the protection of digital identities. Similarly, Certa announced the raise of USD 35 million in a Series B funding round, aimed to strengthen its go-to-market efforts and accelerate the expansion of its presence in multiple markets. 

At the beginning of September 2023, UK-based identity services provider OneID secured USD 1.2 million in a funding round that was used to optimise the digital experience of UK citizens by enabling banks to provide identity verification services to clients. 


In conclusion, the third quarter of 2023 still witnessed a dynamic landscape in the global fintech industry. The period was marked by cautious investor sentiment, as they closely scrutinised companies' plans for development and profitability. Despite economic challenges and uncertainties, the fintech sector continued to attract some important investments across various subsectors, including digital banking, lending, fraud prevention, and financial inclusion.

While some investors exercised prudence in their capital allocation, the overall global fintech funding only saw a 3% decline in Q3 2023 when compared to the previous quarter, demonstrating the industry's resilience. Notably, US-based fintechs remained at the forefront, accounting for nearly half of all quarterly fintech funding in Q3'23.

Several companies leveraged their newly acquired funds to fuel global expansion and enhance their product offerings, reflecting a commitment to meeting customer expectations in an ever-evolving financial landscape.

The cybersecurity and fraud prevention sector, for example, witnessed investments directed at addressing AI-generated fraud and the challenges posed by Large Language Models (LLMs). As digitalisation accelerates, this area has become increasingly critical to safeguarding the integrity of online transactions.

In addition, the financial industry continues to explore opportunities in Open Banking, Embedded Finance, and Banking-as-a-Service (BaaS), offering convenience and accessibility beyond traditional banking and financial institutions. This trend led to investments in innovative companies like Lemonero, OneStack, and Anchor, each contributing to the growing ecosystem of financial services.

Finally, the fintech landscape in Q3 2023 showcases an adaptable industry, with investments ranging from traditional financial services to cutting-edge technologies. Investors and companies alike demonstrated a commitment to innovation, customer-centric solutions, and the pursuit of growth and development in the ever-evolving world of finance.

About the authors

About Sînziana Albu

Sînziana is a Junior News Editor with a keen focus on fintech, payments, and digital identity. With a passion for unravelling the complexities of the rapidly evolving technological landscape, Sînziana is dedicated to delivering insightful news that keeps her readers informed. 



About Dragoș Cernescu

A dedicated and inquisitive copywriter and blogger, Dragoș has extensive experience in editing and developing content related to IT and tech. After joining The Paypers, his focus turned to the latest fintech, payments, and crypto announcements. For Dragoș, connecting the dots and observing trends and developments in the industry is becoming second nature.




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Keywords: investment, funding, expansion, payments , banks, ecommerce, The Paypers Quarterly Analysis series
Categories: Payments & Commerce
Countries: World
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Payments & Commerce