FinTech Futures: Top five news stories of the week – 20 December 2024
Here’s our pick of five of the top news stories from the world of fintech this week, featuring Chime, Tyme Group, Affirm and more.
FIS reportedly set to acquire UK-based fintech Demica for around $300m
FIS is reportedly set to acquire Demica
US banking and paytech giant FIS is reportedly set to acquire London-based fintech Demica in a deal worth around $300 million, according to a report by Sky News.
Founded in 1992, Demica offers a cloud-based supply chain finance platform. The solution integrates with multiple bank payment gateways to automate real-time payments in over 30 countries.
If the deal goes through, Demica will join FIS’s expanding portfolio of acquisitions, which includes San Francisco-based Banking-as-a-Service (BaaS) fintech Bond, which FIS bought last year for an undisclosed sum.
A spokesperson from FIS told FinTech Futures: “We do not comment on market rumour or speculation.”
US BNPL fintech Affirm secures $4bn capital partnership with Sixth Street
US-based buy now, pay later (BNPL) company Affirm has secured a “long-term capital partnership” with Sixth Street, a San Francisco-headquartered investment firm managing over $80 billion in assets.
Under the agreement, Sixth Street will utilise its Asset-Based Finance platform to invest “up to $4 billion” by acquiring Affirm loans in an AssetCo (asset company) structure, as part of a three-year forward flow arrangement.
According to a joint statement, the deal, which is the largest capital commitment Affirm has secured to date, will give the company the ability to “extend up to more than $20 billion in loans over the next three years as the company continues to scale its payment network”.
Affirm, which says it has grown its total funding capacity by more than 50% over the last two years, states it intends to “continue its approach of regularly adding capacity across channels and building upon its relationships with its long-term capital partners”.
Tyme Group achieves unicorn status with $250m Series D led by Nubank
Tyme Group is now valued at $1.5 billion
Tyme Group, a multi-country digital banking company headquartered in Singapore, has achieved unicorn status after raising $250 million in a Series D funding round.
The round was led by a $150 million investment from Brazilian challenger Nubank, and brings Tyme’s valuation to $1.5 billion.
M&G’s Catalyst supported the round with a $50 million contribution, while existing investors provided the remaining $50 million.
The round, which adds to the firm’s $77.8 million raise in 2023, will be used to drive Tyme’s expansion into Vietnam and Indonesia.
Zest AI lands $200m growth investment, eyes “high impact M&A opportunities”
Credit underwriting solutions provider Zest AI has secured a $200 million growth investment from existing backer Insight Partners as it looks to “take aim at high impact M&A opportunities”.
The company, founded in 2009, will use the investment to “accelerate our product roadmap and identify strategic M&A opportunities”, according to founder and CEO Mike de Vere.
This M&A strategy and product roadmap will focus on “loan underwriting solutions, fraud protection, marketing and data intelligence capabilities”, the company adds.
US fintech Chime reportedly submits confidential filing for potential 2025 IPO
Chime is reportedly aiming to go public in 2025
Chime Financial has reportedly confidentially filed for an initial public offering (IPO) in the US, according to a report by Bloomberg.
The Bloomberg report, citing sources familiar with the matter, says that Chime is targeting 2025 for its public debut, but its sources add that the timing has yet to be confirmed and plans may change.
Founded in 2012, Chime provides digital-first mobile banking solutions to more than 22 million users in the US, offering services such as cashback rewards, checking and high-yield savings accounts, a Visa-powered credit and debit card, earned wage access services, and more.
The company, now employing 1,500 people across three offices, reached a valuation of $25 billion after securing $750 million in a Series G funding round led by Sequoia Capital in 2021.
