Top FinTech funding rounds in the Americas: February 2021
By Pavithra R
Investor interest in FinTech companies in America has remained evergreen in the face of the economic downturn wrought by the COVID-19 pandemic. The article list top funding announcements that were made in February.
South African digital bank TymeBank has announced securing an investment amounting to R1.6 bn, one of the largest foreign investments any FinTech company has secured in the country.
The finance round attracted new investors from the UK and Philippines: Apis Growth Fund II and JG Summit Holdings, owned by the Gokongwei family. Along with TymeBank’s existing shareholders, which includes majority shareholder African Rainbow Capital, the new investors commits to growing the bank into a top tier retail bank in South Africa. They have also agreed to launch a digital bank in the Philippines, testament to the innovation and digital banking capabilities TymeBank has built.
The new investment will allow TymeBank to expand its range of banking products and grow its lending portfolio. The bank also seeks to enhance its propositions in insurance, credit cards, and other value added services to customers. This will support the bank’s ethos of broadening access to financial services to individual clients, entrepreneurs, small and medium business owners into the banking ecosystem.
Fraction Technologies, a technology company offering a digital platform that provides socially conscious financial solutions, has announced securing C$289 mn in a combination of equity and debt financing from Impression Ventures, Primetime Partners, Global Founders Capital, and Panache Ventures, among others.
Founded in 2018, Fraction offers a digital platform that empowers homeowners with socially conscious financial solutions they need to live and age well. Its flagship product, the Fraction Appreciation Mortgage, has seen wide reception in North America. It enables homeowners to access the existing value locked in their homes to increase their income or cover unexpected expenses. In contrast to products such as home equity loans or traditional mortgages, the Fraction Appreciation Mortgage has no monthly payments and offers a reasonable interest rate payable upon the sale of the home, or when the homeowner decides not to renew.
The FinTech is planning to use the finance to launch in Canada, expand its team and technology platform, and prepare for its launch in the United States. The firm is committed to using technology to create financial solutions that are fair for everyone.
OutSystems, a low-code platform that provides the tools for companies to develop, deploy and manage omnichannel enterprise applications, has announced a $150 mn capital raise at $9.5 bn valuation.
The investment round was co-led by Abdiel Capital and Tiger Global and is planned to expand investments in its R&D and GTM strategy. Abdiel Capital, Tiger Global is joining Goldman Sachs, KKR, Guidepost Growth Equity, and Armilar Venture Partners in recognizing the opportunity and potential. Recognizing the challenges of building scalable, adaptable software, OutSystems was found to give organizations the power to innovate through software.
The latest funding comes as a recognition of the success of the firm’s singular focus and the transformative impact on its rapidly expanding global customer base.
Built Technologies, powering smarter construction finance has announced securing $88mn in Series C funding led by Addition, Lee Fixel’s new fund. The firm has raised over $137 mn to date.
The investment round had material participation from fintech-focused Canapi Ventures and continued participation from Goldman Sachs Investment Partners, Nyca Partners, Fifth Wall Ventures, Index Ventures, and Nine Four Ventures. The round also saw participation from Additional investors including Jordan Park, Green Point Partners, Renegade Partners, and the Witkoff Group, along with other notable individuals such as Jackie Reses, Zander Lurie, Dan Goldsmith and Lowell Putnam.
The FinTech will use the funding to expand its Built for Lending product suite and accelerate its go-to-market efforts to serve more banks and non-bank construction lenders throughout the United States and Canada. Additionally, the company is aggressively investing in the ways it serves commercial owners, homebuilders, developers and other construction companies within its Built for Construction division. Built has also announced the joining of Fixel to its Board. He has previously backed startups including Flipkart, Peloton and SurveyMonkey.
Nymbus, a leading provider of banking technology solutions, has announced raising $53 mn in Series C funding led by existing investor Insight Partners.
The FinTech is planning to use the finance to empower FIs with expanded access to its unique GROW model, which creates new digital revenue streams for banks and credit unions.
The new financing is Nymbus’ largest investment to-date and follows a year marked by overwhelming demand for the company’s proven alternative to the traditional banking model. The firm, with its complete suite of banking technology, tools and on-demand services, makes digital transformation available to move any size financial institution forward.
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