FinTech Futures: Top five stories of the week – 22 December 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
Visa to acquire majority stake in Mexican payment processor Prosa
Visa acquires majority stake in Prosa
Payments giant Visa has entered a definitive agreement to acquire a majority stake in Mexican payment processor Prosa in a bid to bolster the country’s adoption of digital payments.
The deal, for an undisclosed sum, is expected to close in the second half of 2024 once regulatory approvals are secured and customary closing conditions are met.
As part of the agreement, Prosa will continue to operate as an independent entity and utilise its own technology, while Visa will help expand its product offerings and share knowledge and experience with Prosa’s leadership — all of whom will be retained.
Its existing shareholders including Banorte, HSBC Mexico, Invex, Santander Mexico, Scotiabank Mexico and Banjército will continue to own the remaining portion of the company.
Saudi BNPL fintech Tamara lands $340m Series C funding at $1bn valuation
Tamara, a Saudi Arabia-based fintech platform offering buy now, pay later (BNPL) services, has raised $340 million in a Series C funding round, becoming the country’s first fintech unicorn with a valuation of $1 billion.
The equity funding round was co-led by Sanabil Investments and SNB Capital, with participation from new investors including Shorooq Partners, Pinnacle Capital and Impulse joining existing backers including Coatue, Endeavor Catalyst and Checkout.com.
Founded in 2020 and headquartered in Riyadh, Tamara also operates in the UAE and Kuwait and claims to have more than 10 million users and over 30,000 partner merchants on its platform.
Paysera launches in Georgia after securing banking licence
Paysera Bank’s inaugural branch in Tbilisi, Georgia
Lithuanian fintech company Paysera has launched operations in Georgia after securing a banking licence in the country last month.
Paysera, which holds an electronic money institution licence in Lithuania, had originally applied for a banking licence in Lithuania under the name Paysera Bank in 2021.
It was finally granted a digital banking licence on 17 November in Georgia, reportedly making it the first digital bank in the country.
According to its business model, local entrepreneurs own 100% of the bank’s shares, with Dimitry Kumsishvily, a businessman, former deputy prime minister and former minister of finance and economy, serving as the main shareholder and director.
CSI snaps up partner Hawthorn River for single-platform loan origination system
US fintech solutions provider CSI has snapped up Hawthorn River for an undisclosed sum as it eyes enhanced loan origination capabilities.
Based in St. Louis, Missouri and founded in 2018, Hawthorn River provides a loan origination system (LOS) built specifically for community banks.
The deal comes after CSI initially struck a partnership with the solutions provider in October this year for its LOS.
CSI says that the full integration of Hawthorn River this month will enable loan origination capabilities for all types of loans across both its commercial and consumer accounts.
UK neolender Updraft secures £272m in mix of debt and equity funding
Updraft secures £272m in debt and equity round
UK neolender Updraft is ending the year on a high having raised £272 million in a mix of debt and equity funding.
The round comprises a £250 million forward flow arrangement with Santander and Jefferies Financial Group, while Quilam Capital, MoreThan Capital, LC Nueva AIF and Auluk Investments led a £22 million mezzanine and equity investment.
Founded in 2017 and based in London, Updraft offers a mobile app featuring lending, credit reporting and financial management services. It combines open banking and behavioural data in an attempt to improve credit risk underwriting and lower the cost of credit.
