Welcome to TechCrunch Fintech (formerly The Interchange)! In this edition, I’ll be taking a look at the latest round of BRICS layoffs, the state of fintech investing in 2023 and more! I may be taking some time off in the coming weeks but never fear, TechCrunch Fintech is not going away. We will be back soon!
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The big story
What goes up, must come down. For spend management startup Brex, this was the case with its headcount. While interest rates were low, the company saw a boom in business and it was easier to obtain venture capital money. Its headcount swelled to about 1,300 before layoffs in October 2022. As things return to reality, BRICS is trying to reset itself, announcing this week that it has cut 282 employees, or nearly 20% of its staff, in a restructuring. . The move came after reports that the company burned through $17 million in cash each month during the fourth quarter and was trying to maintain its runway.
Analysis of the week
Fintech, oh, fintech. Last year wasn’t easy for you Fintech investors pumped $34.6 billion into startups across 2,055 deals in 2023, down -43.8% and -32.4% year over year, respectively, according to Beachbook data. Valuations were also mostly down, averaging at $19.4 million, down -13% from the 2022 average. Exits were also down, with exits at just $5.9 billion across 185 deals in 2023, down -76.1. % and -22.3% on an annual basis, respectively. But Q4 was good. according to CP Insightsthe fintech saw eight new companies during this period and an increase in equity funding by double-digit percentages.
Dollars and cents
Bilt Rewards, whose platform aims to let consumers earn rewards on rent and everyday spending in neighborhoods, announced last week that it had raised $200 million at a $3.1 billion valuation. General Catalyst led the financing, doubling the New York-based company’s valuation from its $150 million raise in October 2022. The jump in raise and valuation is impressive in an environment where mega-rounds (deals worth more than $100 million) have been on the rise. Few and far between. CB Insights 2023 Project Status Report It found that although mega rounds “were the hallmark of 2021, with more than 350 rounds occurring every quarter… in 4Q23, that number fell to just 78 – the lowest level since 2017.”
What else do we write?
Swedish fintech company Klarna has announced its first subscription plan, ‘Klarna Plus’, for $7.99 per month, featuring benefits such as no additional service fees when using Klarna’s One Time Card, double rewards points and access to exclusive discounts with popular brands .
a New list compiled by GGV US Highlights 50 fintech startups that venture capitalists think are hot. We also spoke to GGV Managing Partner Hans Tung about what he sees in the sector today.
PayPal will start piloting some new upcoming updates to its service, some of which will leverage AI-based personalization. The company is introducing a new cashback offering called Smart Receipts, with personalized recommendations, among other things.
Other titles of great interest
Sequence raises $5.5 million in funding
Sunbit secured a $310 million debt warehouse facility led by Citi
Public investment platform launches options trading – and pays clients for their orders
Girasol Payment Solution has acquired Colombian fintech company FinZi
BillingPlatform has secured a $90 million growth equity investment from FTV Capital
Fintech forecasts from Plaid’s CEO
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