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Top 5 FinTech funding rounds – March 2021 (UK & Europe)

By Megha Bhattacharya

March 31, 2021

  • Bitpanda
  • Europe

Studies have shown that the COVID-19 pandemic has adversely affected the FinTech ecosystem. The number of FinTech deals has taken a hit as investors are choosing mature companies over early-stage deals to put their money in. Although some FinTechs received hefty investments, Emerging Payments Association’s analysts revealed a significant contraction for the market, with fintech funding in Q1 2020 already down $2 billion from Q4 2019.

Check out these four noteworthy European FinTech funding deals that took place in February 2021 –

  1. SumUp ($895 million)

Global payments service provider SumUp has raised €750 million in debt financing as it looks to accelerate its growth through acquisitions and expansion of its global reach and product suite. The investment facility comes from returning investors Goldman Sachs and Bain Capital Credit, alongside Temasek and Crestline. The round was oversubscribed, and funds are managed by Oaktree Capital Management.

SumUp plans on using the proceeds to acquire and support its existing merchants in 33 markets across the world, as well as continue expanding the product suite, both organically and through further M&A activity, as well as for refinancing existing debt facilities.

The company has recently broadened its product portfolio in the POS and gastronomy space across the UK and continental Europe through the acquisition of leading POS software providers Goodtill and Tiller. These recent acquisitions will put SumUp into contact with potentially millions of new customers, from cafes and restaurants right up to the biggest sports stadiums and concert arenas; signalling a new generation of SumUp merchants coming into play.

  1. Starling ($376 million)

Starling Bank, the UK challenger bank, raised £272 million in a Series D funding round at a £1.1 billion pre-money valuation – achieving unicorn status just months after turning a profit. The investment round was led by Fidelity Management & Research Company (Fidelity), alongside Qatar Investment Authority (QIA), RPMI Railpen (Railpen), the investment manager for the £31 billion Railways Pension Scheme, and the global investment firm Millennium Management.

The funding will support Starling’s continued rapid growth, which has been profitable for the past four months. The capital will be deployed primarily to support a targeted expansion of Starling’s lending in the UK, but also to drive’s Starling’s expansion across Europe and for anticipated M&A.

  1. Bitpanda ($170 million)

Vienna-based digital investment platform Bitpanda has become Austria’s newest unicorn after raising $170 million in Series B funding, giving the company a $1.2 billion valuation. The round was led by Valar Ventures, with participation from the partners of DST Global. The company aims to boost its growth and enter new European markets, following the funding round.

Recently, Bitpanda launched a new Visa debit card – Bitpanda Card, powered by Contis’ zero-balance Buffer technology. The zero balance technology aims to remove the need to liquidate assets before spending. This allows digital assets in Bitpanda accounts to be automatically converted to fiat at point-of-sale, both online and in-store.

According to Bitpanda, the card can be linked to any asset in a user’s portfolio and through the app, cardholders can easily switch, from cryptocurrency to gold, and spend in real-time.

  1. Zego ($150 million)

Commercial motor insurer Zego – a London, UK-based company that’s led and co-founded by an Estonian – has become a unicorn, having raised $150 million and is now valued at $1.1 billion. The company has also become the first InsurTech unicorn in the United Kingdom, it said in a statement. The funding round was led by DST Global and includes other new backers such as General Catalyst, whose founder Joel Cutler joins Zego’s board.

Zego is a commercial motor insurance company aimed at businesses – from self-employed rideshare drivers and riders to entire fleets of vehicles. According to the company, it combines “technology with multiple data sources to offer insurance products that save businesses time and money”.

  1. PayFit ($90 million)

PayFit, a France-based FinTech that specializes in payroll and HR, announced that it secured $90 million through its Series D funding round which was led by Eurazeo Growth, Large Venture, and BPI France with participation from Accel, Frst, and Xavier Niel.

Launched in 2016, PayFit describes itself as an “ultra-intuitive” SaaS solution that was created to digitize all the “complex aspects” of payroll and human resources. The company’s solution notably makes it possible to manage the hiring of employees, pay stubs, social declarations, paid leave, end of contract, and expense reports.

The latest investment will be used to continue developing its comprehensive HR solution, consolidate the platform’s existing offer and support its hypergrowth by increasing our headcount from 550 to 800 by the end of this year.

ALSO, READ : Cool FinTech Report by IBS Intelligence

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