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ICON Corporate Finance FinTech Deal News
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FinTech Deal News #5

Chris Skinner Invests in Meniga, a White Label Digital Banking Solution

“I have become a shareholder as I strongly believe in both the value of Meniga’s products and the market opportunity. Meniga is well-positioned to help institutions prepare for open banking and leverage the power of their own customer data to drive more meaningful engagement in their digital channels,” said Skinner.
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Orange Capital rebrands as Finch Capital and announces two new investments
Orange Capital the FinTech VC firm rebrands as Finch Capital and announces that it has led the Series A investments for two companies: an investment in Ayopop, an Indonesian mobile bill payment platform and a €2M investment in Ikbenfrits, a digital mortgage broker based in the Netherlands. Finch Capital will join both companies’ boards.
BNP Paribas Integrates WeChat Pay, one year after partnering with WeChat's largest rival Alipay 
The idea behind the launch is to enable the bank’s retail partners to cater to the 7.4 million Chinese tourist visiting Europe annually. This was a strategy first made clear when the French bank partnered with WeChat rival Alipay last year. Operated by Ant Financial Services Group, Alipay has some 450 million users in China.
Facebook brings Messenger payments to France and the U.K.
Facebook Messenger extended its P2P payment system to millions of users by making payments possible in Euros and British pounds in France and the UK respectively. This is the first time P2P payment is being made available to Facebook Messenger users outside the U.S - since being introduced more than two years ago.
Apple Pay Cash is available in iMessage to iOS 11.2 beta users 
If you've been waiting for Apple to finally launch its Venmo-like competitor, now's the time. According to reports at TechCrunch and CNET, Apple is soft launching P2P money transfer via iOS 11.2 beta right in the Messages app.
Monzo’s the UK challenger bank valued a £280M after a funding round of £71M led by Goodwater Capital, the investment  includes £11M in secondary funding as founding employees partly cash in. Existing investors  Passion Capital, who first backed the company's Seed round in 2011, plus NY based Thrive Capital and CVC fund Orange Digital Ventures all followed their money.   
Is Amazon ready to upend the insurance industry?
Internet giant Amazon is currently recruiting insurance professionals in London in a bid to disrupt the insurance market in countries throughout Europe.
PayPal Looks to Diversify Beyond Payments
PayPal wants to move beyond payments, according to its CFO John Rainey, who said the company will focus on a combination of partnerships and investments in companies that can propel the payments companies into other areas. Rainey pointed to the PayPal’s recent partnership with robo investing platform Acorns as an example of this desired move. 

For PayPal the tie up with Acorns fits the ambition to offer a broader range of financial services as it seek to diversify it's revenue streams. Additionally, the integration with Acorns could help PayPal attract more users, especially those left out of the mainstream investment services because of higher fees or other barriers.

Robo advisers such as Acorns and Betterment are expected to have $385Bn AUM by 2021.
Silicon Valley accelerator Plug and Play Plans New Middle East Innovation Platform in Partnership with Abu Dhabi Global Market

The agreement by Silicon Valley accelerator Plug and Play and Abu Dhabi Global Market (ADGM) is the latest sign that the hot MENA FinTech sector is about to get a lot warmer. The new partnership calls for Plug and Play to open a new office in Abu Dhabi and bring some of its top FinTech startups along to work with local FIs.

Plug and Play CEO Saeed Amidi said:“We have already talked to 100 portfolio companies that we have investments in, [who] would like to come to the Middle East, implement their technologies with different banks, as well as perhaps raise money here and have a technical team here”. The Abu Dhabi-based accelerator will be part of the new ADGM FinTech Innovation Centre. 

To-date, ADGM has established established 40 MOUs with 27 countries. 

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M&A Deals

Proxama sells digital payments division
Proxama has sold its digital payments division to LHH2 APS, a private Danish company, for an initial payment of £1M. 

Acorns to launch new retirement accounts after buying Portland FinTech startup, Vault
Micro-investment service, Acorns, which automatically invests small amounts from its customers’ bank accounts into investment funds, has bought Vault, a Portland-based developer of retirement fund investment services.

Double acquisition for Succession Group
The company has bought Manchester and Stratford-on-Avon-based H&L Financial Ltd, the holding company for Inspire Wealth Management, and Edinburgh and Glasgow-based Accountants Financial Services (Scotland) Ltd (AFS) through its fast-track acquisition process.

Earnest, An Online Student Lender, Bought By Navient For $155M
Financial technology start-up Earnest has agreed to be acquired by student loan servicing giant Navient for $155M cash. 

McAfee acquires cloud security startup Skyhigh Networks, last valued at $400M
After spinning out as a standalone security business from Intel earlier this year, McAfee has made its first acquisition. The company has acquired Skyhigh Networks, a specialist in cloud security, the companies announced today.

Snap has acquired Metamarkets for less than $100M
As Snap, gears up to report its quarterly earnings next week, it looks like the company is making some moves to beef up its primary business line. Metamarkets is profitable and currently generating tens of millions in revenues. Clients that use its data tools include large media properties like Twitter.
 

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Funding News
TransferWise announces whopping $280M investment as early shareholders cash in remittance unicorn 
TransferWise secures $280M. The Series E was led by asset management firm Old Mutual Global Investors and Silicon Valley VC firm IVP.

Monzo’s raised £71M including £11M secondary investment, as founding employees partly cash in
Monzo, the UK challenger bank, raise £71M round led by Goodwater Capital, Stripe and Michael Moritz, giving the company a valuation of £280M post-money. Previous backers Passion Capital, Thrive Capital and Orange Digital Ventures have also all followed on.

WeLab raises $220M from investors including Alibaba, the IFC and Credit Suisse
WeLab, who operate online lending platforms in Hong Kong and China, has raised $220M in combined equity and debt financing. The Series B brings its total funding so far to $425M. Investors include the Alibaba Hong Kong Entrepreneurs Fund, the World Bank’s International Finance Corporation (IFC) and Credit Suisse. Existing investors include Sequoia and ING. 

Kabbage gets $200M from Credit Suisse to expand its AI-based business loans
After picking up $250M in equity funding from Softbank earlier this year, the small business loans and finance company Kabbage, which uses only algorithms and machine learning to determine an applicant’s eligibility, is announcing another big infusion of money. The company is picking up $200M from Credit Suisse in a revolving credit facility that it will use for loans.

Remitly is raising up to $115M led by Naspers’ PayU to double down on remittances
The round comes at a period of significant growth for Remitly. The company, which competes against others like WorldRemit, Azimo, TransferWise, Regalii, and Xoom (now part of PayPal), has in the last year expanded to seven more receiving markets in South America (Guatemala, Honduras, El Salvador, Nicaragua Colombia, Ecuador, and Peru) and one send-side market, the UK. This has helped the company expand its annual send volume to nearly $4Bn, up from $1Bn a year ago.

Behavox lands investment from Citigroup
AI software firm Behavox has received $20M in a round led by Citigroup. As a result of the deal, the firm which has built compliance surveillance software is now valued at $200M.

Zego picks up £6M Series A led by Balderton for its gig economy worker insurance
Zego has secured £6M in a round led by Balderton Capital, with support from existing investors including LocalGlobe. The company offers pay-as-you-go insurance products for gig-economy workers.

 
Habiteo bags €6M
Online property marketplace Habiteo has raised €6M from backers including Aster, Serena Capital and company co-founder Denis Fayolle. 

AIB invests €30m in TransferMate
TransferMate, the international payment provider based in Ireland, receives €30M in funding from Allied Irish Bank, valuing the company at €250M to €300M.

 
Selection of ICON FinTech deals
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Digital Bank / Does digital transformation actually matter?
Western banks have so far proved largely resilient to the digital disruption that has upended retailing, the taxi and hotel trades, and more. But they know they cannot be complacent. They are spending billions on technology, and are both buying and allying with FinTechs. BBVA’s executive chairman since 2000, believes that sooner or later the real threat to banking are the giants of the internet - Amazon, Facebook, Google - will be his main rivals.
Why we are backing Zego, the pioneer in insurance for the gig economy
InsurTech is a tough sector to crack, and one where many of the companies are still in early stages of development. However, the decision to back Zego was an easy one, because it offered all the attributes Rob Moffat had been looking for in an insurtech investment.
White Papers
How FinTech is Forcing Banking to a Tipping Point
FinTech is changing the world of finance. In the US and Europe, we are at a tipping point, especially in consumer banking. The banks have clients and scale but the new FinTech entrants usually have the innovation edge, especially at the "client experience" interface. To remain competitive, banks need to get innovation before the FinTech companies get scale. In China, by contrast, we are past the tipping point: FinTech companies have both scale and innovation. India is the next biggest opportunity.

This report (1) identifies where FinTech investments are being made by financial product and client segments; (2) assesses where we are in the Disruption Cycle by segment and geography; (3) takes a deeper look at innovation in each of the key product segments - payments, lending and savings; and (4) assesses what banks can do to improve the efficiency of their businesses, both in terms of current headcount and distribution as well as long-dated options such as Blockchain.
The FinTech50 

See the full list of the fifty hottest FinTechs in Europe here>>

About ICON

ICON acts exclusively for tech companies. Its clients are changing the world and ICON helps them secure funding to build great companies and realise maximum value when they come to sell. ICON has recently sold companies to Constellation, NTT Com, Telstra, Accenture, Thomson Reuters, RWE Npower, Software AG and Aberdeen Asset Management and raised capital from leading private equity and venture capital funds.
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