Envestnet Dumps Open Banking Pioneer Yodlee to STG for Fraction of Rival Plaid's Billion Dollar Valuation 🇺🇸
Mexican Neobank Reaches Near Unicorn Status 🇲🇽, Worldline crashes 38% over Wirecard-style scandal 🇫🇷, Revolut CEO's Tesla-style $15B payday 🇬🇧 & Telco mogul takes over scandal-hit bank 🇨🇦
🇺🇸 Envestnet Dumps Open Banking Pioneer Yodlee to STG for Fraction of Rival Plaid's Billion Dollar Valuation
US-based wealth management solutions provider Envestnet has agreed to sell its open banking platform Yodlee to private equity firm STG, ending a decade of ownership of the account aggregation pioneer it acquired for $590 million in 2015. Known for allowing budgeting app Mint to connect to its users bank accounts when it launched in 2007, Yodlee was for a long time the undisputed leader of the space, and was the first account account aggregator to offer a truly global coverage. However, Yodlee has never been the focus of Envestnet, and its low connection rate and reliability issues allowed for competitors like MX, Plaid and Flinks to rise from its shadow.
While we don’t know how much STG paid for Yodlee, what we know is that Yodlee’s price was much lower than Plaid’s recent $6.1B valuation. Last year, after Envestnet itself was acquired by Bain Capital for $4.5B, its books revealed it wrote off 48.6% of its $590M investment in Yodlee, valuing the open banking data provider at only $303M.
The transaction, set to close in Q3 2025, will let Envestnet focus on its core business of providing software to wealth management industry, while still maintaining access to Yodlee's technology through a partnership with the buyer. In the press release announcing the deal, Envestnet CEO Chris Todd explained that advisors will retain access to Yodlee account aggregation technology that allow them to keep an eye on their clients’ assets.
Commenting on the sale on X, Lex Sokolin, Managing Partner at Generative Ventures, a fintech venture capital firm, called it "the biggest fumble of fintech 1.0," drawing a comparison to financial management platform Intuit’s decision to close its budgeting app, Mint, because it couldn't figure out what to do with it. Another venture capital investor, Matt Ober, General Partner at Social Leverage, raised key questions about Yodlee’s future in a LinkedIn post, asking if the new private equity owners would invest in the business, roll out new products, leverage AI, or perhaps even rebrand the company. “If Plaid is the industry leader, depending on what Yodlee was sold for, there is tremendous upside,’’ said Ober.
Source: Global Fintech Insider
🇲🇽 Mexican Neobank Klar Reaches Near Unicorn Status With $190M Raise
Mexican digital bank Klar has secured $190 million in Series C funding led by General Atlantic, valuing the company at over $800 million as competition heats up with Revolut receiving a banking license in April 2024 and Nubank already serving over 10 million customers in Mexico. Founded in 2019 by CEO Stefan Moller (right), Klar offers app-based financial products including credit cards, personal loans, and business banking services as an alternative to traditional Mexican banks, recently expanding into B2B payments after acquiring assets from Tribal and pursuing its own banking license. "With the recent breakthroughs in AI, we now find ourselves able to build today what we once thought wouldn't be possible until 2050," Moller said, as the company approaches $300 million in annual revenue. The round included $170 million in equity and $20 million in venture debt, with participation from existing investors Prosus, IFC, Mouro Capital, and Quona Capital, alongside new backers including Santander Group.
Sources: Bloomberg & Global Fintech Insider
🇷🇺 Rouble Stablecoin Launched By Modovian Fugitive Ilan Sor Was Used To Move $9.3B Despite Sanctions
A stablecoin created by fugitive Moldovan oligarch Ilan Șor (pictured above) has quietly moved over $9.3 billion in just four months, raising concerns over its role in helping Russia evade Western sanctions. Launched in February, the Russian rouble-pegged token known as A7A5 is believed to facilitate cross-border cryptocurrency payments that bypass traditional financial scrutiny. Șor fled Moldova after being convicted in a $1 billion bank fraud, the country’s largest. A7A5 is backed by deposits in Moscow's sanctioned Promsvyazbank. The stablecoin is traded exclusively on Grinex, a crypto exchange launched in Kyrgyzstan that seems to be the successor to Garantex, Russia's largest exchange shut down by US law enforcement in March after stablecoin issuer Tether helped authorities freeze $23 million in USDT. A7A5 allows Russian users to buy tokens and convert them into dollar-pegged USDT for international transfers. Research from the London-based Centre for Information Resilience links A7A5 domains to Russian political influence operations in Moldova. In response, the UK has also sanctioned A7, the company behind the token.
Sources: Financial Times & Global Fintech Insider
🇳🇿 New Zealand's Xero Buys Israeli Payments Firm Melio For $2.5 Billion
Xero, a New Zealand-based cloud accounting software rivalling QuickBooks, has acquired Israeli payments platform Melio for $2.5 billion. Melio’s platform is used by SMBs to manage accounts payable and receivable as well as collect payments, and has integrations live with both QuickBooks and Xero.
The deal represents one of Israel’s largest tech exits in recent years and provides a significant windfall for Melio’s co-founders, Matan Bar (center), Ilan Atias (left), and Ziv Paz (right). Each co-founder owns around 9% of the company and stands to earn over $150 million. This move expands Xero’s presence in the competitive US market, where QuickBooks have more market shares than its rival Xero. Bar, who previously helped develop Venmo at PayPal, will lead the combined operations of Xero and Melio in the US.
Sources: Bloomberg & Calcalistech
🇬🇧 Revolut CEO Nik Storonsky Gets Crazy Compensation Package Worth Up To $15B
Revolut CEO Nik Storonsky could receive as much as $15 billion in compensation if the company’s valuation exceeds $150 billion, similar to Elon Musk's controversial $46 billion pay package at Tesla. To unlock this, Revolut's valuation would need to more than triple from its current $48 billion valuation. Storonsky's stake in Revolut exceeded 25% following an April ownership restructuring, already positioning him to benefit significantly from any future valuation increases. Although Revolut has doubled its profits in 2024 to $1.4 billion, it’s far from the $32 billion in profits banking giant HSBC posted during the same year. Yet, HSBC is “only” valued at $210 billion.
Sources: Financial Time & Global Fintech Insider
🇦🇷 Revolut Acquires Tiny Argentine Bank from BNP Paribas to Compete With Mercado Libre & Uala
Revolut has acquired Banco Cetelem, BNP Paribas’ Argentine lending arm, marking its entry into Argentina, South America's second-largest economy. The $48 billion company purchased one of Argentina's smallest banks, with just $6.4 million in assets. Revolut has appointed Agustin Danza as CEO for Argentina and begun the regulatory approval process. This move follows Revolut’s expansion into Mexico and Brazil, leveraging economic reforms under President Javier Milei that are reshaping Argentina's banking sector. Revolut CEO Nik Storonsky had previously admitted that growing without bank licenses was a mistake. Revolut now faces competition from regional players like MercadoLibre and Uala in Argentina's recovering financial market. Mercado Libre, Latin America’s e-commerce giant, is also seeking a banking license in Argentina through its fintech arm, Mercado Pago, intensifying the competition in the digital banking sector in Latin America. While Nubank CEO David Velez said he would take a new look at a potential Argentinian expansion last year, the Brazilian neobank is still not available in Argentina.
Sources: Bloomberg & Global Fintech Insider
🇺🇸 Prediction Markets Kalshi and Polymarket Raise Big Rounds & Keep Blurring the Line Between Trading and Betting
New York based prediction market platforms Kalshi and Polymarket are raising hundreds of millions. US-based Kalshi, led by CEO Tarek Mansour (picture above), has just achieved a $2 billion valuation after closing a $185 million Series C round led by Paradigm. Kalshi's key advantage is its full US regulatory approval from the Commodity Futures Trading Commission (CFTC). This sets it apart from competitor Polymarket, which has been banned in the US since 2022, which barely means Americans betting on the site need to use a VPN. Meanwhile, Polymarket is reportedly seeking $200 million at a $1 billion pre-money valuation, backed by Peter Thiel's Founders Fund.
Matt Huang, who led the investment in Kalshi for Paradigm, pointed out the sector's potential, comparing prediction markets to early cryptocurrency. "Prediction markets are like crypto 15 years ago, an entirely new asset class with the potential to reach trillions,’’ he told TechCrunch. With Robinhood having recently ventured into crypto futures and predictions, what is obvious is that the thin line that separates online casinos from retail trading apps is getting thinner and thinner.
Source: TechCrunch
🇮🇳 PayPal And Mastercard Backed Pine Labs Plans $303M Indian Public Offering
PayPal-backed Pine Labs, a digital payments provider led by fintech entrepreneur Amrish Rau, has filed for an initial public offering (IPO) in India, aiming to raise up to $303 million. This would be the largest fintech IPO in India since Paytm raised $2.5 billion in 2021. Filing with Indian financial regulators revealed that CEO Amrish Rau’s net worth is estimated at ₹850 crore to ₹1,000 crore (around $99 million to $117 million) following the IPO. Pine Labs plans to sell new shares, while existing shareholders, including PayPal, Mastercard Asia/Pacific, and Peak XV Partners, will offload up to 147.8 million shares. For the year ending March 2024, the company reported a loss of 1.9 billion rupees ($22.1 million) on revenue of 13.4 billion rupees ($156.5 million). The funds raised will be used for debt repayment and expansion into Singapore, Malaysia, and the UAE. The IPO comes during a boom in India's fintech sector, which now accounts for nearly 46% of global digital transactions, following a 90-fold increase in retail digital payments over the past 12 years.
Sources: Bloomberg & Business Standard
🇨🇦 Canadian Telco Mogul Anthony Lacavera Is Taking Over a Small Canadian Bank To Turn It Into A Challenger Brand
Canadian telecom entrepreneur Anthony Lacavera’s (pictured above) Globalive has received approval from the government to acquire Wealth One Bank, a Canadian bank with $500 million in assets. The 10-year-old bank was forced to sell due to alleged ties to the Chinese government. North Exit Ventures General Partner Tal Schwartz pointed out the irony in a LinkedIn post, noting that Lacavera, who was once forced to sell Freedom Mobile due to foreign ownership rules, is now acquiring Wealth One, which also had to sell due to foreign ownership issues. In the same LinkedIn thread, Colin Pyle, COO of digital assets custodian Balance, cautioned: “Navigating innovation under the regulatory shadow of Wealth One won't be easy, especially if customer deposits are part of the plan,” adding that “Schedule I realities are a different beast.” Schwartz also pointed out that the acquisition comes amid major shifts in Canada’s banking market, with fintechs like Wealthsimple and Neo Financial entering the space, and others like Questrade Financial Group and KOHO pursuing banking licenses.
Sources: Bloomberg & Global Fintech Insider
🇬🇧 Starling Bank Plans US Entry Where Rivals Monzo And Revolut Failed
UK neobank Starling Bank is eyeing US expansion, exploring options to either secure a banking license or acquire a mid-tier bank. With regulatory changes opening up opportunities, Starling sees a chance to expand its banking and software-as-a-service businesses in the US. The bank’s CFO Declan Ferguson (pictured above) told Sifted that if Starling pursues an acquisition, it would use its SaaS arm, Engine, to replatform the acquired bank, demonstrating the technology's capabilities. Ferguson explained that a US expansion is timely as "under the current administration, there's a vast and deep pool of opportunity." Founded in 2014 by Anne Boden, Starling has over 4 million customers and £12.1 billion ($16.6 billion) in deposits but hasn't expanded internationally like rivals Revolut and Monzo. If successful, Starling would achieve what other European neobanks failed to do, as both Monzo and Revolut withdrew their US banking license applications in 2021.
Sources: The Globe and Mail & Sifted
🇫🇷 French Unicorn Spendesk Reaches Profitability After CEO Swap And Layoffs
French spend management platform Spendesk reached profitability for the first time in Q1 2025. This milestone followed mass layoffs and a leadership change, with former BCG partner Axel Demazy (right) replacing co-founder Rodolphe Ardant as CEO. The Paris-based corporate spending management platform achieved over €50 million ($58.9 million) in annual recurring revenue in 2024. Spendesk competes with major players like US-based Brex, a corporate card platform poised to generate $500 million in annual revenue in 2025, and Ramp, another US-based competitor valued at $16 billion. "Spendesk went through a major transformation, and it was difficult." Demazy told Sifted. He also confirmed the layoffs after Spendesk initially planned to hire 300 people when it raised €100 million ($118 million) at a billion-dollar valuation in 2022, with 100 new hires added in 2021. While the exact number of layoffs hasn’t been disclosed, Spendesk now has just over 300 employees. The company has also deployed AI to automate tasks and optimize costs. Serving 200,000 business users, including SoundCloud and Gousto, Spendesk generates half its revenue from France and 40% from the UK.
Source: Sifted
🇺🇸 Miami VC Kiara Capital Launches $40M Fund To Invest in Latin American Fintechs
Miami-based venture capital firm Kiara Capital has raised $40 million in its first fundraising round to invest in early-stage B2B fintech startups in Latin America. The firm was co-founded in 2023 by Miami based fintech entrepreneur Michael Esrubilsky (left) and Brazilian investor Daniel Arippol (right). Esrubilsky has over 25 years of experience and led four successful exits in Brazil worth nearly $1 billion, while Arippol brings 15+ years of expertise in private equity and venture capital. Kiara has already reviewed 160+ opportunities, made five key investments, and invested $2 million across Brazil, Mexico, Colombia, and the US. Notable investments include Astride, a US-based fintech offering accounting solutions for foreign investors, and Payana, an AI platform improving financial operations for small and medium-sized businesses (SMBs) in Mexico and Colombia. The founding partners will stay the largest investors, making sure their interests match those of the other investors. Kiara plans to invest in 15-20 startups, with initial investments of $500,000 and additional funds set aside for follow-up investments.
Sources: Finextra & Yahoo Finance
🇫🇷 Worldline Stock Plunges After Reports Link Company to Wirecard Style Scandal
French payment processing company Worldline’s shares dropped 38% on June 25, losing $578 million in market value, after reports accused its German subsidiary, Payone, of enabling fraud. Wordline’s stock slightly bounced back since then, but is still down 24% compared to its closing price on June 24.
Frankfurt-based Payone, handling 5 billion annual transactions for retailers like Aldi and REWE, was exposed for processing payments for porn scammers and fraudulent subscriptions. The scandal involves three key figures: Ruben Weigand, convicted of US bank fraud, referred merchants processing over €55 million ($64.7M); Ray Akhavan, the "porn baron," ran subscription traps; and Andrew Garroni, a horror film producer, ran fake pop-up scams. German magazine Der Spiegel claimed that Payone’s compliance was lax, with just 1-2 employees overseeing high-risk clients.
Worldline CEO Pierre-Antoine Vacheron (pictured above), speaking on a call with analysts on June 25, blamed an "orchestrated media campaign" for the stock crashing, insisting the reports were not new and that the company had already cut ties with high-risk clients. In September 2023, BaFin forced Payone to sever ties with hundreds of merchants, costing €130 million ($153M) in revenue. However, internal documents suggest some questionable clients may have moved to other Worldline subsidiaries.
Sources: De Spiegel, Bloomberg & American Banker
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