There’s not much room in 2021 for 2020-style pessimism. Sure,
if you look, you can find plenty of things to be negative about so
far this year. However, one aspect of 2021 that’s giving fintechs
hope is the recent uptick in valuations across the fintech
Despite last year’s global events, many fintechs received
valuations exceeding $1 billion. In fact, in December 2020 alone,
four fintechs, including eToro, Creditas, PhonePE,
and GoCardless, received unicorn status.
This year seems to be off to a similarly bullish start, with
four fintechs becoming unicorns in just the first three weeks of
India-based Digit Insurance became India’s first unicorn of
2021 after the country saw 11 new unicorns in 2020. Just 15 days
into the new year, and after raising $18.5 million, Digit Insurance
a new valuation of $1.9 billion.
Spend management startup Divvy
received a valuation of $1.6 billion after its Series D round
on January 5. The $165 million came from new investors PayPal
Ventures, Whale Rock, Schonfeld, and previous backers NEA, Insight
Venture Partners, Acrew, and Pelion. The pandemic has spurred
increased traffic to Utah-based Divvy; the startup has experienced
a 500% increase in monthly sign-ups since March 2020.
SaaS banking platformMambu earned
its unicorn title after landing a $135 million investment on
January 7. The boost gave the Germany-based company a post-money
valuation of just over $2 billion. Mambu will use the funds to
increase its presence in Brazil, Japan, and the U.S.
The second fintech unicorn to come out of Lehi, Utah is fintech
data company MX. Founded in 2010, MX
raised $300 million in Series C funding on January 13, bringing
the companyâs total capital to $505 billion and boosting its
valuation to $1.9 billion. Company CEO Ryan Caldwell said that MX
will use the funds to hire more staff and improve its data
collection and enhancement capabilities.
Four Fintechs Crowned Unicorns in the First 3 Weeks of 2021
appeared first on Finovate.