TechCrunch Fintech: Meet PayJoy, a fintech operating at the intersection of doing good and making money
Welcome to TechCrunch Fintech! This week, weâre looking at how two fintech companies serving the underserved are faring, and more!
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The big story
PayJoy is an example of a company with positive unit economics and a mission to help the underserved. Itâs not often that we see those two things intersect, so when we do, we get pretty excited. I wrote about the companyâs milestone of achieving $300 million in annualized revenue and profitability last year, while also managing to land $150 million in Series C funding. The companyâs model is unique: It helps people build credit through pay-as-you-go financing for smartphones. Once the phones are paid off, customers can apply for loans through PayJoy using their devices as collateral. Read all about its growth here.
Analysis of the week
Petal is another fintech company that aims to help the underserved âbuild credit, not debt.â Last May, TechCrunch wrote about the companyâs $35 million raise and plans to spin off its data unit. Last week, Empower Finance announced its plans to acquire Petal, which apparently began looking for buyers last year âwhen it was short on cash,â according to Fortune. A spokesperson for Petal told me via email: âLike Petal, Empower ⊠uses cash flow underwriting for its suite of credit products. ⊠With the Petal acquisition, it will soon have a family of credit cards to complement that offering.â Will we see more M&A in 2024? Iâm eager to see.
Dollars and cents
TransferGo, the U.K.-based fintech best known as a consumer platform for global remittances, has raised a $10 million growth funding round from Taiwan-based investor Taiwania Capital, with a view to expanding in the Asia-Pacific region. It last raised a $50 million Series C funding round in 2021. TransferGo claims its growth, combined with the new investment, doubles its valuation.
What else weâre writing
Brazilian startup Salvy, a mobile carrier for businesses, was the only company based in Latin America in Y Combinatorâs latest batch, the accelerator confirmed to TechCrunchâs Anna Heim. Thatâs a significant drop compared to cohorts that went through the accelerator during COVID when it was remote, but also more recent classes. For example, there were 33 Latin American companies in Y Combinatorâs Winter 2022 batch. Could the overall state of the fintech sector be partly to blame? Historically, around one-third of the 231 Latin American companies that went through YC focused on fintech. And with fintech funding on the decline, this could perhaps partly explain YCâs lack of LatAm interest.
High-interest headlines
Investors circle âmost hatedâ fintech and e-commerce sectors
Stride and Utah set new precedents in benefits for independent workers
US startup Parafin lands $125M warehouse facility from SVB and Trinity Capital
Tabs secures $7M seed funding to enhance AI-driven accounts receivable platform
UAEâs fintech Fortis secures $20M in a Series A roundÂ
Anrok hits a $250M valuation with a mundane idea: calculating
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