FinTech Futures: Top five news stories of the week – 15 November 2024
Here’s our pick of five of the top news stories from the world of fintech this week, featuring Klarna, Ualá, Visa and more.
Klarna picks New York for upcoming IPO
Klarna selects New York for IPO
Swedish buy now, pay later (BNPL) giant Klarna has chosen the US for its much-awaited initial public offering (IPO).
The fintech revealed this week that it has submitted an application to the US Securities and Exchange Commission (SEC) for the “proposed initial public offering of its ordinary shares”.
Founded in 2005, Klarna is reportedly poised for a multibillion-pound valuation in its upcoming listing.
Speculation over whether Klarna would choose New York or the London Stock Exchange for its highly anticipated stock market debut has been circling for the past year after Klarna established a UK holding company last November. However, in a statement made to FinTech Futures at the time, a Klarna spokesperson clarified that no final decision had been made regarding the timing or location of the IPO.
Argentinian fintech Ualá lands $300m Series E funding round at $2.75bn valuation
Argentina-based fintech Ualá has secured a $300 million Series E funding round at a company valuation of $2.75 billion.
The round was led by Allianz X, the investment arm of global insurance and asset management giant Allianz Group, with participation from a mix of new and existing investors including Alan Howard, Goldman Sachs Asset Management, SoftBank Latin America Fund, Jefferies, D1 Capital Partners, Claure Group, AlleyCorp, and others.
Founded in 2017, Ualá offers a wealth management app featuring a range of products and services, including a payment account associated with an international Mastercard prepaid card, a savings account, credit and investment options, and additional payment and collection functionalities.
The company claims that its app now has 8 million users across Argentina, Colombia, and Mexico, adding that more than 17% of the adult population in Argentina now has a Ualá account.
SIX Group agrees £194m deal to acquire UK’s Aquis Exchange
SIX Group to acquire Aquis Exchange
SIX Group, a Swiss stock exchange operator, has agreed a deal to acquire all issued and to-be-issued shares of UK-based Aquis Exchange.
The deal will see each Aquis shareholder receive 727 pence in cash per share, more than double the closing price of 330 pence on Friday 8 November.
SIX says the offer “values the entire issued and to-be-issued share capital of Aquis at approximately £207 million (using the treasury stock method for share options), and £225 million on a fully diluted basis, and implies an enterprise value of approximately £194 million”.
Established in 2012, Aquis is a London-headquartered capital markets firm that operates a pan-European multilateral trading facility (MTF) for cash equities in 16 European markets.
Visa rolls out flexible payment solution in US and UAE with Affirm and Liv
Payments giant Visa has announced the expansion of its Flexible Credential solution to the US and the UAE through partnerships with buy now, pay later (BNPL) fintech Affirm and digital bank Liv.
Launched in May earlier this year, Visa Flexible Credential enables users to pay from different account funding sources with a single card.
Affirm will utilise Visa Flexible Credential for its Affirm Card, enabling its 1.4 million US customers to either pay for purchases upfront or choose to pay over time.
Meanwhile, in the UAE, Visa has partnered with Liv, the challenger launched by Dubai-based Emirates NBD in 2017, which will utilise the technology to enable customers to access multiple currency accounts from a single card when making payments.
Canadian fintech Neo Financial raises $258m in mix of equity and debt funding
Neo Financial raises $258m Series D
Neo Financial has raised $258.3 million (CAD 360 million) in Series D funding, comprising $78.9 million in equity and $179.3 million in debt.
The round drew fresh participation from angel investors Tobi Lütke, CEO and founder of Shopify; Stewart Butterfield, founder and former CEO of Slack; Roblox CEO David Baszucki; and Mike Wessinger, co-founder and executive chair of PointClickCare.
Based between Calgary and Toronto, Neo operates a suite of banking services for consumers in Canada, including credit cards, mortgages, savings accounts, bill payment and AI-powered budgeting tools.
In a statement, the fintech says it will use its latest capital raise to “accelerate product velocity”, having significantly expanded its remit since its inception in 2019.
