welcome to interchangeIf you get this in your inbox thank you for signing up and trusting and voting. If you read this as a post on our site please sign up here You can receive it directly in the future. Each week we take a look at the hottest fintech news from the previous week. This includes everything from funding rounds to trends to analysis of specific spaces to hot takes on specific companies and phenomena. That’s my job. That way you can get the latest information. Mary Ann
Last week, a good friend of mine and a very talented journalist (and co-host of the Equity podcast) Natasha Mascarenhas and i reported it Amazon had a deal with a struggling online mortgage company better dot com Offer new benefits to employees. Specifically, Better.com announced the launch of Equity Unlocker, a program that allows employees to use their vested equity as collateral for a down payment when trying to purchase a home. Amazon employees in Florida, New York, and Washington will be the first to try the tool. According to Better.com, what makes the program unique is that it allows employees to finance their homes simply by pledging vested shares without actually selling the stock.
This news, frankly, came as a bit of a shock to those of us who have been following what’s happening at Better.com. For those unfamiliar, the fintech company has had a fair amount of trouble putting its future in question. Last May, TechCrunch reported on a filing by Better.com that revealed he’d lost more than $300 million in 2021. This is largely after a rapid decline in business brought on by a slowing housing market and soaring mortgage rates. price. Then, in the first quarter of 2022 alone, Better.com posted a staggering net loss of $327.7 million.
The company’s reputation has also been hit hard by the way it has repeatedly implemented mass layoffs, resulting in an exodus of executives. Better.com also made headlines last July, and despite a lackluster debut performance of the blank check combination, it appeared that they were still pushing forward with their SPAC filings.
So should Amazon partner with a company that isn’t growing and has a bad reputation to tie its own workforce together? And the spokesperson said a lot about how the company wants to provide employees with all kinds of health benefits. This fits the paper. But he never specifically answered, “Why Better.com?” The fintech itself has been a customer of Amazon Web’s service since 2015, and says its loan origination system is powered entirely by software. A quick Google search by TC Senior Reporter Rebecca Szkutak found at least two online mortgage companies that she’s also an AWS customer.
Beyond that, the idea of giving employees the option to use their vested equity to purchase a home doesn’t seem very appealing. What if the stock price goes down? how does that work? Who has a vested interest sufficient to use as collateral?In addition, Better.com offers employees who choose to purchase a home in this manner a 0.25% to 2.5% he It has said it will charge higher interest rates. Mortgage rates are already high enough these days, hovering around 6%. Plus he adds 2.5% pushing someone into his 8% range. Needless to say, we’re all very excited to see how this plays out, and we’ll be checking in again in a few months.
Meanwhile, regarding Better.com’s SPAC filing, HousingWire reported last week: Aurora Acquisition Corporation has extended the deadline three times to complete its merger with struggling digital mortgage lender Better.com. The deadline for the merger is now September. The decision was made at Aurora’s shareholders’ meeting on February 24, according to documents filed with the U.S. Securities and Exchange Commission (SEC). ”
After so many setbacks and so much negative publicity, Better.com can actually go public in an environment where even companies that are growing and can share positive financial metrics are hesitant. I find it hard to believe that there is a sexuality. I am very interested in how companies, for example, survive.
For the Equity team’s thoughts on the Amazon and Better.com partnership (and more), listen to the podcast here.And listen to my one-on-one conversations while you work on it Index Ventures Partner and Fintech Lead Mark Goldberg. We had a great discussion about all things fintech and Mark didn’t hesitate!Oh and he also talked to Hans Tung who is managing his partner at ICYMI. GGV a few weeks ago. You can catch that very interesting conversation here.
weekly news
Romain Dillet reports: Revolute has released its 2021 Annual Report. 2021 ended more than a year ago for him, but the report shows some key figures as the company nearly tripled its revenue from his 2020 to his 2021. contained. With this explosive growth trajectory, the UK digital bank will be the first. Revolut’s financial success starts at the top of the funnel. As of the end of 2021, Revolut has over 16 million customers, a 46% increase compared to 2020. ”
I wrote last week, Clannads US Momentum The Swedish payments giant revealed this week that it expects to return to profitability this year after posting a hefty ($1 billion) operating loss in 2022. In this article, Alex Wilhelm asks, “How far is Klarna progressing toward profitability?” he wrote: From massive valuation cuts to layoffs, news about Klarna has been negative for some time. Now that we have the company’s financial data, we can take a closer look at how it performed amidst all the noise. ”
Aisha Malik reports:door dash launches its first-ever credit card. trackingThe DoorDash Rewards Mastercard offers cardholders the opportunity to earn cash back on delivery and all other purchases made with the card… It shows that it is looking for ways to drive loyalty and keep its platform in the forefront of the minds of its users. The move will allow DoorDash to offer additional perks to its users while also opening up new revenue streams. ”
Report Curly Page: “hatch bankIt is a digital-first bank that provides infrastructure for fintech companies that offer their own branded credit cards.
based in london wise, formerly known as TransferWise, has launched two new products in the United States. He also revealed the look of the new brand, which “now he draws inspiration from his 16 million customers around the world.” The company also told me in an email that since listing on his LSE in July 2021, he has expanded his global customer base by nearly 6 million.
Amsterdam-based payments giant Adien claims to have become the first company to embed a Click to Pay experience into online checkout flows worldwide. A spokesperson said in an email: According to a spokesperson, the Click to Pay feature is a “new online payment method that combats the risk of drop-offs during the checkout stage,” making checkout easier and more secure (no primary account number entered). and other advantages. The shopper receives his one-time password at checkout) and is universal in that it can be used across both devices and browsers. Click here for details.
Report PYMNTS.com: “San Francisco-Based Financial Services Platform modern treasury has introduced a product called “Global ACH”. It has been billed as a “new payment service” that enables lower-cost cross-border transfers than options such as SWIFT by utilizing local payment rails. To launch Global ACH, Modern Treasury is partnering with Silicon Valley Bank…Modern Treasury said Global ACH will “strike current borders in that it is cheaper than SWIFT and other third-party options. It offers many advantages over conventional payment options.”
After covering Stripe’s Tap to Pay news last week, PayPal has reached out to announce the launch of Tap to Pay for Android in the UK, Netherlands and Sweden in May 2022. It was then launched in additional European markets. This is the release that announced the launch of the service in the UK on May 5, 2022. Ivan Mehta also works with Apple on his Tap to Pay, which he reported in November.
Did you know there are neobanks targeting doctors? universal finance describes itself as “a bank built by doctors for doctors”. A company spokesperson said in an email:
Other news
Greenlight offers the financial benefits of a new workplace designed for families
Public.com Announces Higher Yielding ‘Treasury Account Now Available to All’
Robinhood Wallet is now available to all iOS users worldwide
Wealthfront Introduces Equity Investments
Step Launches Equity Investing for Teens and Young Adults
Mexican BNPL startup Kueski has made 10 million loans to over 1.8 million consumers
ChatGPT Learn Fintech
First Fidelity Bank Enters BaaS Space in Partnership with Episode Six
Image credit: door dash
Financing and M&A
Saw it on TechCrunch
Insurtech giant Equisoft secures $125M investment, eyeing acquisition
Insuretech Flock, Born of Drone Tech, Raises $38M in Series B to Safely Guide Commercial Drivers
Pagos raises $34M as demand for ‘payment intelligence’ rises
Spade transforms the gibberish of credit card transactions into clear, actionable data
Varo and Stripe are said to be raising new money at much lower valuations
and elsewhere
Highway Benefits Raises $3.1M in Seed Funding
SoftBank leads series A of Chilean startup Rankmi to merge with Mexican payroll provider Osmos
TTV Capital Closes Fund VI With $250 Million To Invest In Early-Stage Fintech
Fintech companies hiring
The good news is that we are inundated with DMs and emails announcing that fintech companies are hiring. Unfortunately, we can’t cover everything in this week’s newsletter. So get in touch and if you don’t see your company here, check out future editions of The Interchange. I am working my way down the list!
- Corporate Spend Management (and Fully Remote) Company air force baseraised $150 million in debt from Goldman Sachs last July and is hiring in about 18 positions.
- wealth frontThe company, which won $69.7 million in a deal worth $1.4 billion from UBS last year after a planned merger collapsed, has 17 open positions across engineering, design, marketing, finance and more.
- smart assetis a marketplace that connects consumers to financial advisors, raised a $110 million Series D round at a unicorn valuation in June 2021, and is hiring for multiple remote positions.
- Alternative investment platform iCapital, It says it plans to hire 100 people with more than $150 billion in AUM.
- Communication agency specializing in fintech KCD PR is hiring and has several vacancies that will add 3-5 more roles in 2023.
Thinking about participating in this year’s Disrupt? Best regards! FYI, this is your last chance for super early bird tickets. That’s it for this week! Whenever I can, I go out to enjoy his 70-degree weather here in Austin. Have a great weekend. See you next time. xoxoxo, mary ann
