The Evolve hack fallout continues, fintech M&A heats up and Plaid is talking enterprise push


you are welcome TechCrunch FintechThis week, we’re taking a look at the Evolve Bank hack, three notable acquisitions, Plaid’s enterprise customer growth, and more.

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Big Story

26 June, Evolve Bank & TrustA financial institution popular among fintech startups has announced that it has been the victim of a cyberattack and data breach that may also impact its partner companies. According to the company, the incident involved data and personal information of “certain Evolve retail bank customers and customers of financial technology partners” such as Affirm, Mercury, Built, Alloy, and Stripe. On June 29, the fintech company behaviour announced that personal data of some of its customers had been stolen in a data breach.

Last week too, Thread Bank — a popular partner for BaaS startups like Unit — faced enforcement action from the Federal Deposit Insurance Corporation (FDIC).

Analysis of the week

This past week was a pretty active one for fintech M&A. Just seven months after announcing a $6 million seed funding round, data intelligence startup Hyperplane announced that it has been acquired by Brazil’s Nubank. The company’s main focus is to allow banks to train their own models to power tools in their risk, collections, and marketing departments. In the meantime, Chime Also announced plans to acquire Salt Labs “for $173 million,” TechCrunch reported Salt Labs’ $10 million will be raised here in March 2023. And Robin Hood The AI-powered research platform is adding more AI features for investors with the acquisition of Pluto Capital.

Dollars and Cents

Paymentwhich builds infrastructure that allows companies — particularly software companies — to embed and facilitate payments via APIs, raised $20 million in Series A funding.

There is another company in this field Rainforestswhich raised $20 million in its own Series A funding round, less than a year after its seed financing. Rainforest embeds payment processing into other software platforms.

The Belgians Chiftwhich lets SaaS companies integrate with dozens of financial tools with a unified API, raised a $2.5 million seed round.

Armed with $8 million in seed funding, Egyptian banking-as-a-service startup Connect Money It seeks to leverage its popularity to explore emerging business opportunities in African markets.

It can often be difficult for a foreigner to use the health insurance system. German startups Wing thinks it has the solution and has raised 6 million euros to help some of the more than 40 million migrants working and living in Europe.

What else are we writing about?

Plaids Expanding to become a multi-product company has seen it start to gain real traction beyond traditional fintech clients. President Jane Taylor told me specifically how many enterprise clients the company now has, and detailed how growth in this segment is starting to outpace the rest of its business.

Indian e-commerce giant Flipkart has quietly begun launching its own payments app, dubbed Super.Money, as it broadens its fintech ambitions more than a year and a half after splitting from PhonePe. The Walmart-owned firm’s new app, now live in beta on the Play Store, allows users to make mobile payments via UPI, an interoperable network that is the most popular way Indians transact online.

High-interest headlines

Citi believes AI is eliminating more banking jobs than any other sector

Goldman Sachs deploys its first generative AI tool across its entire company

Billionaire Steve Cohen’s Point72 Ventures fires fintech team, turns to AI

Sell ​​your old items and pay for new items at checkout

Prudence, Profit and Growth (Global Fintech Report co-written by BCG and QED Investors)

Only Up from Here: The State of Fintech 2024 and the Hero’s Journey (from Bain Capital Ventures Partner Matt Harris)

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