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receive to TechCrunch Fintech !
This hebdomad we ’re looking at the story behind the sales agreement of Divvy Homes , Ramp ’s new product , some far-famed fundraising deals , and more !
To get a roundup of TechCrunch ’s biggest and most important fintech stories delivered to your inbox every Tuesday at 8:00 a.m. PT , support here .
The big story
Last calendar week , actual demesne fintechDivvy Homesannounced that it wassellingto Brookfield Properties for “ a total thoughtfulness ” of about $ 1 billion . At its height in 2021 , the split - to - own startup was valued at over $ 2 billion . On the control surface , the event did n’t seemterrible , given the turn of proptech society that haveshut down(most recently , EasyKnock ) altogether in recent year .
However , digging deeply , we realized that the dealwasn’t really so rosyfor many shareholders . Because Divvy had occupy out so much debt , includinga $ 735 million debt financingin October of 2021 , most of that $ 1 billion was going toward pay that back as well as funding dealings costs and “ liquidation penchant to preferable shareowner . ” CEO and Centennial State - founder Adena Hefets stated in a letter to stakeholder look at by TechCrunch that “ vernacular shareholders nor holders of the Series FF preferent stock ” would not meet any consideration . Ouch .
No doubt Divvy was hurt by interestingness pace soar upwards in 2022 , but it had other problems too . There were a form ofcomplaintsalleging that the fellowship was not maintaining its holding and/or wasevicting peoplewhile also charging mellow - than - market charge per unit rents . Was it a fire sale or not ? approximate that count on who you ask . But even Hefets herself admitted she was “ not proud of the fiscal outcome . ”
Dollars and cents
Despite the recent turbulence in the space , some proptechs are still getting cash . Founded by aBetter.comalum , Foyer — a platform that helps consumer save for down payments , essentially acting as a “ 401(k ) for homeownership ” — announceda $ 6.2 million seeded player roundled by Alpaca VC and Hometeam Ventures .
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Indian fintechJarhasturned immediate payment - flow positively charged , an executive at the Tiger Global - backed inauguration corroborate on January 22 . The3 - class - old inauguration , which offers rescue and investment services to consumers , achieved the milepost while still develop by more than 10 times last class , fit in to an investor note seen by TechCrunch ’s Manish Singh .
On January 22,Rampannounceda young United States Treasury productthat would give its customer a mode to take in more on run cash . I utter to CEO and co - father Eric Glyman to get all the particular . When I require him if it was exact to say Ramp was impinge on digital bank territory with the Modern production , he acknowledged that was a “ honest ” assessment .
After pivoting from crypto to payroll department , Rollfiis being acquiredby Priority Tech Ventures , a unit of the publically switch payments and banking tech supplier Priority Technology Holdings , for an undisclosed amount .
Vertice , a London - based startup that operates an AI - power SaaS drop weapons platform , call forth $ 50 millionat a reported $ 500 million rating . Ingrid Owen gives us the scoop .
Visahas joined African fintechMoniepointas a new investor . Sources skinny to the deal told Tage Kene - Okafor that the fintech — whichannounced a $ 110 million investmentlast October — received over $ 10 millionfrom Visa .
Austin - basedMethod , a platform that powers debt and debt - refund features in fintech software for ship’s company such as SoFi , upraise a $ 41.5 million Series B roundled by Emergence Capital .
What else we’re writing
Fintech giantStripeislaying off 300 people , according to a leaked memo reported on January 21 byBusiness Insider , but still plans to hire in 2025 .
Indonesia ’s antimonopoly agency KPPUfinedGoogle202.5 billion Rupiahs , tantamount to $ 12.6 million , on January 22 for an antitrust violation related to its defrayal system services for the Google Play Store .
There ’s an interesting connexion betweenMistral , the French AI startup with a $ 6 billionvaluation , andAlan , a health indemnity unicorn . Romain Dilletgives us the details .
More startupsshut downin 2024 than the year prior , agree to multiple origin , and that ’s not really a surprisal considering the harebrained issue of company that were funded in 2020 and 2021 . It appear we ’re not nearly done , and 2025 could be another brutal year of startup shut out down . Read mydeep nose dive , which includes data fromCartaandAngelList .
High-interest headlines
paysheet platform Deel deny charge that it enable money laundering , blames challenger for lawsuit
HSBC shuts payments app Zing a class after launch
Andreessen Horowitz closes UK office , pivots back to US crypto market
Clutch secures $ 65 M Series B funding to propel credit coupling into the fintech era
Thanks for reading ! Until next week … travel along me on X@bayareawriterfor breaking fintech word , posts about coffee , and more .
