The Weekly Wrap: all you need to know by Friday COB | April 28th

By Puja Sharma

The Weekly Wrap is published every Friday and recaps the week’s main stories and deals, as well as upcoming events and announcements. For Prime subscribers only.

The Big Story

In the latest sign that investor caution is impacting the FinTech sector, a Revolut shareholder reduced the value of its stake by 46%. According to Schroders Capital Global Innovation Trust, part of asset management firm Schroders, Revolut’s stake could reduce from $33 billion to $15 billion (£12 billion). In its annual results, the Trust has marked down its Revolut shareholding by 46%, down to £5.4 million from £10.1 million last year. In July 2021, Schroders invested £9.9 million into Revolut as part of its Series E funding round.

Following Revolut’s long-awaited annual report for the year ending 31 December 2021, Schroders devalued its shares following BDO’s warning that three-quarters of its revenue cannot be verified.

Reuters reported at the time that Revolut’s revenue statement was “not in doubt” and the auditor’s concerns were “remedied in 2021”. The move also follows US-based investment firm TriplePoint Venture Growth slashing the valuation of its holding in the UK-based neobank by 15% last month, according to media reports.

Another UK challenger, Atom Bank, has also been marked down by 31% by Schroders. Despite this, the asset manager is optimistic about the firm’s future. According to Schroders, the business continues to grow and is now profitable. The operational progress at Atom Bank is encouraging.

“Any new capital that the bank raises is therefore supporting further growth through increased scale and new product launches, which has the potential to deliver shareholder value over the medium term notwithstanding the current volatile environment surrounding valuations of listed players in the space.”

Deals of the week

• Bixby raises $5.5m Series to expand product offerings
• FintechOS partners with EY to boost innovation of financial institutions
• Mastercard and egabi to expand digital lending solutions across EMEA
• FinanZero raises $1.5m to launch new financing products
• Temenos integrates with two DLT-based CBDC technology stacks
• Santander Bank partners with DailyPay for on-demand pay solution
• Nigeria-based VigiPay partners with ThetaRay to prevent financial crime risk
• Worldline forms payments joint venture with Crédit Agricole
• com raises $85m Series C to grow savings Super App
• French FinTech Mooncard raises €37m in Series C
• Funding Societies achieves $3b in SME lending
• Corvallis taps Finastra to drive digital transformation for Italian banks

Be on the lookout for

The Digital Integration in Wealth Management Switzerland Conference, taking place on October 04 and 05, 2023, will bring together digital leaders from private banks and wealth management firms to provide a strategic roadmap for integrating digital tools.

Participants will get to learn how digital integration can enhance their wealth offering and client experience; discover the latest innovations in AI, automation, robo advice, digital client journeys, and next-generation client values; listen to concrete digital case studies from wealth managers in the Swiss market; and meet with peers from across the region to discuss digital innovation in wealth management.

With high-level talks and discussions delivered by senior guest speakers, attendees can expect to discover the strategies, tools, and processes powered by innovation and client-centric values to meet cross-generational needs and thrive in a digital age.