Fintech brief August 2017



Table of Contents
A.    Investments
B.     Developments
o   Bank’s collaboration
o   Regulatory updates
o   Progress reports
C.     Special coverage
o   Lufax
o   Alipay
o   WeChat Pay
o   DBS PayLah!
o   OCBC PayAnyone
D.    Annex
o   Fintech funding profile by funds raised, 2016
o   Fintech funding profile by deal number, 2016
o   Top recipient countries of fintech investment, H1 2017


      A.    Investments
Payments
Region
Firm
Amount
By Who
Date
Asia
Omise
US$25 million, via an ICO

Asia
Innoviti Embedded Solutions
US$18.6 million
SBI-FMO Fund, Bessemer Venture Partners, Catamaran Ventures
Asia
Cashlez
US$2 million
Mandiri Capital, Gan Kapital, etc.
Asia
InstaReM
US$13 million
GSR Ventures, SBI-FMO Fund, Vertex Ventures, Fullerton Financial Holdings, Global Founders Capital
Asia
fastacash
US$15 million (Series B)
Rising Dragon Singapore, Life.SREDA, UVM 2 Venture Investments LP, etc.
Asia
Trupay
US$700,000
A group of investors, including Kae Capital
Asia
VFinance
undisclosed
Ant Financial
Asia
Everex
US$500,000 (seed)
Holley Group
International
Qonto
€10 million
Valar Ventures, Alven Capital
International
Flinks
US$500,000 (pre-seed)


International
Revolut
US$66 million (Series B)
Index Ventures, Balderton Capital, Ribbit Capital, etc.
International
Shine
€2.8 million
Daphni, Kima Ventures, other business angels
International
Curve
US$10 million (Series A)
Connect Ventures, Santandar Ventures
International
Form3
US$5 million (Series A)
Barclays, Angel Co-Fund, etc.
International
Soldo
US$11 million (Series A)
Accel, Connect Ventures, InReach Ventures, U-Start, R204 Partners



Lending
Region
Firm
Amount
By Who
Date
Asia
Validus Capital
US$3 million
Vertex Ventures
Asia
CompareAsiaGroup
US$50 million
International Finance Corp, Alibaba Entrepreneurs Fund, SBI Group, Goldman Sachs Investment Partners, Ace &N Company, etc.
Asia
Open
US$250,000
PayU India CEO Amrish Rau, PayU India’s managing director Jitendra Gupta
Asia
Turnkey Lender
US$2 million
Vertex Ventures
Asia
Julo
undisclosed (seed)
Skystar Capital, East Ventures, Convergence Ventures, etc.
International
Lendkey
US$13 million (Series C)
North Atlantic Capital, DFJ, Updata Partners, Gotham Ventures TTV Capital, etc.
International
Borrowell
US$12 million (equity), US$45 million (new credit facilities)
Portag3 Ventures, Equitable Bank, White Star Capital, FirstOntario Credit Union, etc.
International
Prospa
US$20 million
Partners for Growth



Artificial Intelligence/Robo-Advisory
Region
Firm
Amount
By Who
Date
Asia
SenseTime Technology Development
US$120 million (Series B)
CDH Investments, Dalian Wanda Group, IDG Capital, Star VC
Asia
Momenta
US$46 million (Series B)
NIO Capital, Daimler, Shunwei Capital Partners, Sinovation Ventures, Unity Ventures
International
Bibblio
US$1.5 million (seed)
01 Ventures, etc.
International
Previse
£2 million (seed)
Hambro Perks, Founders Factory, etc.
International
UVeye
US$4.5 million (seed)
Undisclosed
International
Comtravo
€8.5 million (Series A)
Project A
International
Mendel.ai
US$2 million (seed)
DCM Ventures, BootstrapLabs, Indie Bio, LaunchCapital, SOSV
International
Squirro
US$10 million (Series B)
Orange Growth Capital, Salesforce Ventures, etc.
International
Josh.ai
US$11 million
Undisclosed
International
Intuition Robotics
US14 million (Series A)
Toyota Research Institute, OurCrowd, iRobot, Maniv Mobility, Terra Venture Partners, Bloomberg Beta, etc.
International
Deep Instinct
US$32 million (Series B)
CNTP
International
Element Data
US$35 million
Archibald Cox Jr., Flying Fish
International
Gong.io
US$20 million
Norwest Venture Partners, Shlomo Kramer, Wing Venture Capital, NextWorld Capital
International
Bokio
€3.1 million (seed)
Creandum, Svea Ekonomi, Inbox ventures, Chalmers Ventures, etc.
International
Edgewise Networks
US$7 million
.406 Ventures, Accomplice and Pillar etc.
International
Brain Corp
US$114 million (Series C)
Softbank Vision Fund, Qualcomm Ventures
International
Nauto
US$159 (Series B)
Greylock Parnters, SoftBank
International
Ada Support
US$2.5 million
Bessemer Venture Partners, Version One Ventures
International
FinTech Studios
US$1 million (seed)
KEC Ventures
International
Sportr
US$350,000 (seed)
Robert Braithwaite CBE, Ben Joseph, Richard Tufft
International
Betterment
US$70 million
Kinnevik, Bessemer Venture Partners, Menlo Ventures, Francisco Partners
International
Prospera
US$15 million (Series B)
Qualcomm Ventures, Cisco Investments, ICV, Bessemer Venture Partners

International
Cleo
£2 million
Robin Klein (LocalGlobe), other angel investors
International
Aiqudo
US$5.2 million
Atlantic Bridge Capital
International
Callsign
US$35 million (Series A)
Accel, PTB Ventures, Allegis Capital, David DeWalt
International
Brolly
£1 million (seed)
Valar Ventures, Pi Labs




Others
Region
Firm
Amount
By Who
Date
Asia
FunFair Technologies
US$26 million (token)
BlockTower Capital, Kryptonite1, Pantera Capital, etc.
Asia
Conjoule
€3 million (out of €4.5 million)
TEPCO
Asia
Block.one
US$185 million (token)

International
Ohpen
€15 million (Series B)
Amerborgh, etc.

Upserve
Undisclosed
Visa Equity Partners

Provenance
US$800,000 (seed)
Humanity United, Plug and Play Tech Centre, etc.

Stash
US$50 million (Series C)
Coatue Management, Breyer Capital, Goodwater Capital, Valar Ventures

FinLeap
€39 million
Signal Iduna, SBI Group, NIBC Bank, Hannover Re

Contego Fraud Solutions
£3.5 million
Maven Capital Partners, NVM Private Equity, etc.

Capital.com
US$25 million
Larnabel Enterprises, VP Capital

Receipt Bank
US$50 million (SeriesB)
Insight Venture Partners, etc.

TickSmith
C$2 million
Illuminate Financial Management LLP

Toast
US$101 million
Generation Investment Management, Lead Edge Capital, Bessemer Venture Partners, etc.

B-Secur
US$4.5 million (seed)
Accelerated Digital Ventures, Kernel Capital, etc.
      
B. Developments
Bank’s collaboration
Asia
  • [3 July] KPMG Nigeria is collaborating with the Monetary Authority of Singapore (MAS) to sponsor a Global Fintech Hackcelerator programme. The programme is part of the annual Singapore Fintech Festival. The programme aims to get 1,000 applications from fintech startups around the world, with the top 20 teams selected for a 12-week Hackcelerator programme in Singapore
  •        [20 July] MyBank, an online bank launched by Ant Financial in 2015, signed strategic cooperation with VFinance
  • [21 July] Thailand’s Kasikornbank developed its Letter of Guarantee (LG) service with the introduction of the world’s first blockchain-based LG’s. Four state enterprises and private businesses have participated in the development of the innovation
  • [22 July] FINTQ announced a series of new digital partnerships with banks and non-banking institutions for diverse fintech products and services. This makes it the biggest fintech firm operating in the Philippines currently. FINTQ is the fintech arm of PLDT and Voyager Innovations
  • [24 July] KEB Hana Bank signed a MoA with Korea Technology Credit Guarantee Fund to give priority guarantees of up to 710 billion won (US$634 million) to companies and fintech startups using emerging technology
  • [26 July] Aichi Bank formed a business link with Japanese fintech Money Forward. They will jointly develop a new service using technology powered by Money Forward’s cloud-based accounting service for businesses


International
  • [10 July] Equity investment platform Seedrs and online wealth manager Nutmeg are partnering with Fidor Bank in the fintech marketplace. This marketplace is designed to give Fidor Bank’s customers in the UK access to investment opportunities in the country’s hottest alternative finance brands
  • [11 July] Lending fintech iwoca announced a strategic partnership with Italy’s Intesa Sanpaolo, one of the biggest banking groups in Europe. Intesa Sanpaolo’s fintech VC arm made an investment in iwoca in tandem with the new partnership


Regulatory updates
Asia
  • [11 July] Bank Negara Malaysia will be introducing a regulatory framework for the fintech industry sometime this month. This means risk-adverse banks would more be inclined to embrace fintech
  • [16 July] The People’s Bank of China urged fintech companies to help contribute financially for a government-controlled monitoring system to watch over digital financial transactions. The burgeoning fintech business is imposing greater pressure on Chinese authorities to invest heavility in regtech
  • [18 July] The Singapore Fintech Association (SFA) created an online directory for fintech companies based in the country. This is to help startups with funding and recruiting
  • [27 July] Abu Dhabi Global Market (ADGM) inked two partnerships with Labuan International Business and Financial Centre and Labuan Financial Services Authority. This is to promote greater collaboration on joint financial activities and regulatory practices that support financial ecosystems in Malaysia and Abu Dhabi


International
  • [3 July] US regulators launched initiatives that encourage cooperation between the securities industry and its regulators with respect to fintech innovation
  • [11 July] Incoming EU banking regulations involving customer data sharing and data protection are a “headache for everyone.” These new rules mean banks are slow to respond and must play catch up with the fintech industry
  • [18 July] The Swiss Federal Council amended the Swiss Federal Banking Ordinance to ease the country’s regulatory framework for fintech providers. This move is intended to facilitate crowdfunding and payment processing services and other business models that involve the acceptance of funds from the public
  • [19 July] The Bank of England widened access to Britain’s interbank payments system to increase competition from new fintech firms in the financial system. It allows new payments firms like those offering prepaid cash cards and prepaid online and mobile accounts, to have access to its "real time gross settlement" or RTGS payments system
  • [21 July] The Office of the Comptroller of the Currency (OCC) is working to bring more clarity to fintech oversight. It wishes to prove it has the authority to grant national bank charters to fintech companies. It also plans to keep this authority exclusive
  • [24 July] The US Commodity Futures Trading Commission granted LedgerX LLC registration as a derivatives clearing organisation. LedgerX LLC is a bitcoin options exchange. This allows LedgerX LLC to provide clearing services for fully collateralised digital currency swaps


Progress reports
Asia
  • [5 July] Jakarta-based startup Jukir acquired local fintech firm Wallezz Finansial Teknologi for an undisclosed amount. This acquisition is expected to strengthen Jukir’s e-payment service
  • [5 July] China’s iPayLinks is focusing on expanding into Malaysia as the country will be its maiden market and headquarter in the region. iPayLinks is a global cross-border fintech service provider
  • [14 July] Chinese fintech CreditEase Wealth Management won approval from the Securities and Exchange Commission as a registered investment advisor. This means It can now start providing advice to investors in the US. CreditEase provides wealth management, credit management, microfinance investment and microcredit loan origination
  • [24 July] Qbera launched its operations in Mumbai. It allows borrowers with net monthly income of Rs 20,000 and above to request personal loans of a certain amount without collateral for 1 to 4 years
  • [26 July] Airbnb Inc. is working with Blue Lab Co. to deliver exclusive experiences to tourists in Japan. Blue Lab Co. is a fintech venture backed by Mizuho Financial Group Inc.
  • [27 July] Baidu entered a strategic partnership with Paypal Holdings Inc. to gain access to overseas merchants. Baidu’s payment platform, Baidu Wallet, will be accepted by PayPal merchants globally 


International
  • [11 July] Tic:Toc was launched on 11 July. It offers instant home loans through a digital real-time loan processing system that connects customers directly to the lender
  • [11 July] The Office of the Comptroller of the Currency highlighted in its report the risks US banks are opening themselves to in order to take on emerging fintech rivals. The Office warned about increasing cyberattacks, highlighting a trend which saw crooks target third-party suppliers last year
  • [21 July] Permira will acquire a stake in Stockholm-based payments company Klarna. The size of the stake remains undisclosed, but will be at least 10%
  • [22 July] Flynt became the first Swiss fintech company to obtain a banking license from FINMA. It now operates under Flynt Bank AG
  • [24 July] Digital wealth management fintech FLYNT acquired a banking license from Swiss regulator FINMA
  • [25 July] BlackRock completed acquisition of fintech provider Cachematrix. Cachematrix offers cash management services for corporate treasury clients through banks
  • [25 July] San Francisco-based mobile banking startup Varo Money Inc. is seeking to form a national bank, Varo Bank NA. IT wants to be first national bank in the US designed chiefly for clients who are inclined towards mobile banking
  • [26 July] Sybenatix was bought by Nasdaq for an unrevealed amount. Sybenatix uses AI to spot rogue share traders based on stock trading behaviours
  • [26 July] Visa and Marqeta announced a multi-year, global partnership to promote innovations in commercial and consumer payments. Visa also made a strategic investment of US$25 million in Marqeta to support the latter’s growth objectives

      C.    Special coverage
Lufax
  • [17 July] Singapore granted a licence to China’s P2P lending platform Lufax. This means Lufax can launch an international wealth management platform by the Monetary Authority of Singapore next month


Alipay
  • [6 July] Russia’s Aeroflot now offers Alipay as a payment option on its website to cater to Chinese customers. Aeroflot is the first transport partner of the Chinese payment system in Russia
  • [8 July] Finnair saw a 100% increase in inflight sales on its China flights after implementing real-time Alipay payment processing via inflight connectivity. Finnair is now offering Alipay on all its China flights
  • [9 July] Payment enabler Stripe announced tie-ins with Alipay and WeChat Pay. This means it is possible for online retailers to accept payment through Alipay and WeChat Pay. This could help Strike’s merchants make money from Chinese consumers
  • [10 July] Alipay inked a MOU with Han Feng Inc. This enables Han Feng’s merchants to accept payment via Alipay, allowing them to better serve and connect with Chinese consumers in North America
  • [10 July] Zapper has partnered with Alipay. This will allow Alipay users to pay at Zapper-affiliated merchants via Alipay in South Africa
  • [20 July] RiverPay Inc. introduced payment solutions that would connect Alipay to North American merchants. This means merchants will be able to easily accept payment from tourists that use Alipay to make transactions
  • [21 July] Alipay plans to enter the Kenyan market as an indigenous company. It would create a payment platform for companies operating in the country
  • [24 July] Ant Financial is partnering with Malaysia’s CIMB to provide e-wallet and other online payment services in Malaysia. CIMB subsidiary Touch n’ Go will form a joint venture with Ant Financial under this partnership
  • [24 July] Alipay and WeChat Pay was launched for Singapore. This means local businesses can now accept payments from Alipay and WeChat Pay users, via the Stripe platform
  • [27 July] VivaPayments is partnering with Alipay. This partnership enables Alipay users to make payment via Alipay when visiting Greece


WeChat Pay
  • [3 July] Tencent unveiled a new overseas open platform for WeChat Pay. This will lower WeChat Pay’s entry threshold for overseas business users. Overseas merchants and service providers simply need to submit application materials online, receive a confirmation email and virtually sign a service contract to begin using WeChat Pay
  • [4 July] The Royal Edinburgh Military Tattoo is accepting WeChat Pay. This is to enable the growing number of Chinese tourists to purchase tickets, merchandise and other services from their phones. It is the first Scottish tourism business to do so
  • [9 July] Payment enabler Stripe announced tie-ins with Alipay and WeChat Pay. This means it is possible for online retailers to accept payment through Alipay and WeChat Pay. This could help Strike’s merchants make money from Chinese consumers
  • [10 July] Tencent Holdings launched WeChat Pay payment service in Europe to challenge Alipay. This move is intended to cater to Chinese tourists in Europe
  • [11 July] Tencent Holdings applied for a licence in Malaysia to offer local payment services via its WeChat Pay. This would be WeChat Pay’s first venture beyond China and Hong Kong. If approved, Malaysian users will be able to link their local bank accounts to WeChat Pay and pay in ringgit
  • [11 July] Tencent Holdings is quietly testing out features in WeChat Pay to help business owners make their offline retail more intelligent. One of the testing grounds is the Huaguan supermarket in Beijing. By offering self-service checkout in any of Huaguan’s local stores, consumers only need to scan a QR code to make payment via WeChat Pay
  • [19 July] 2Checkout announced that it expands its support in the Asia Pacific through WeChat Pay. This completes existing 2Checkout integrations with Alipay
  • [20 July] RiverPay Inc. introduced payment solutions that would connect WeChat Pay to North American merchants. This means merchants will be able to easily accept payment from tourists that use WeChat Pay to make transactions
  • [24 July] Alipay and WeChat Pay was launched for Singapore. This means local businesses can now accept payments from Alipay and WeChat Pay users, via the Stripe platform


DBS PayLah!
  • [27 July] From 10 August onwards, DBS PayLah! users can scan the QR code on the cashless payment terminal of any ComfortDelGro taxi, and the app will immediately process the payment. DBS Bank will be the first bank in Singapore to introduce QR code payment for taxis


OCBC PayAnyone
  • [18 July] OCBC PayAnyone has a new feature that allows its users to generate their own unique QR codes. This enables account-to-account fund transfers via QR codes. This means PayAnyone users do not even need mobile numbers or NRIC numbers to make these transactions 

      D.    Annex

Fintech funding profile by funds raised, 2016

Fintech funding profile by deal number, 2016


Top recipient countries of fintech investment, H1 2017