Fintech
Acquisitions Dominate FinTech IPOs as Index Soars 2.2%
The FinTech IPO Index rose 2.2% this week as a spate of acquisitions dominated the news as the end of the second quarter approached.
One such acquisition came from the InsurTech provider Huizewhich saw its shares surpass $1 after a difficult second quarter in which its share price fell below $0.57.
In an announcement this week, The company said it has acquired Global Supporta Vietnam-based InsurTech company offering digital solutions to the insurance industry.
The acquisition marks the first step in the global expansion of Huize’s new international brand, Poni Insurtech, as Southeast Asia offers “significant market parallels to China, including rapidly growing economies, large and young demographics, urbanizing middle-class populations, and growing demand for digital insurance solutions,” Huize said in the release.
Global Care’s suite of cloud-based API solutions, the companies said, enable insurers to streamline and digitize sales processes, policy administration and operations. In 2023, Global Care facilitated 13.5 million policies on its platform, with revenue more than quadrupling year-over-year and registered users growing by more than 1.3 million.
Nubank gets the data
In other acquisition-related news, digital banking platform Cloud Bank has acquired data intelligence company Hyperplanesaying the move will accelerate its artificial intelligence (AI) strategy. By adding Hyperplane’s capabilities to Nubank’s existing AI resources, Nubank will be able to offer its customers more personalized financial products and services, the companies said Wednesday.
Nubank, whose digital banking platform serves more than 100 million customers in Brazil, Mexico and Colombia, currently processes petabytes of data every day using its existing data and analytics infrastructure, according to the announcement.
Nubank shares have risen slightly from $12 to $13 over the past five trading sessions.
Hyperplane, whose data intelligence platform helps banks use first-party data to create personalized customer experiences, has designed its AI systems to ingest and analyze unstructured data at scale.
Following its acquisition by Nubank, Hyperplane will enhance the core machine learning (ML) capabilities of the digital banking platform and create foundational models that product and engineering teams will use to connect across broad contexts, generate insights, support decision making, and improve the customer experience.
International investment company XPShares broke even for the week at $17.97 later The company this week announced an offer to purchase for cash all of its outstanding 3.25% senior unsecured notes due 2026, which have an aggregate principal amount of more than $736 million.
Somewhere else, Start said based in Pennsylvania Diamond Credit Unionwhich holds over $1 billion in assets with over 64,000 members, has in pairs with Upstart to provide personal loans to new and existing members.
Diamond Credit Union became a lending partner of Upstart Referral Network in April 2023. According to the latest release, through Upstart Referral Network, qualified personal loan applicants on Upstart who meet Diamond Credit Union’s credit policies will receive personalized offers as they transition to a Diamond Credit Union-branded experience to complete the online application and closing process.
Upstart shares rose $2, from $21 to $23 during the week.
In news related to management changes, MoneyLeone has appointed Pinterest AND Google veteran Jon Kaplan as the first Chief Revenue Officer (CRO). In his new position, Kaplan will focus on expanding MoneyLion’s market share and leveraging the company’s data wealth to create new revenue opportunities, the financial technology ecosystem company said Monday. MoneyLion shares trended lower for the week, from $75.50 to $71.80.
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