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Inside TabaPay’s drama-filled decision to abandon its plans to buy Synapse’s assets | TechCrunch

May 14, 2024 - techcrunch.com
TabaPay has decided not to purchase the assets of banking-as-a-service startup Synapse, despite previous plans to do so. The $9.7 million deal was called off amid disagreements and finger-pointing among involved parties, including Evolve Bank & Trust and Mercury. In other news, fintech stocks, including digital bank Dave and buy now, pay later giant Affirm, saw a drop despite positive earnings reports.

In funding news, Monzo raised an additional $190 million to expand its international presence, particularly in the U.S. This follows a $430 million round two months ago, bringing the company's total raised in 2024 to over $620 million. Meanwhile, AI-powered workflow tools startup Checkfirst raised a pre-seed $1.5 million round led by Lisbon-based Olisipo Way and Hiero VC.

Key takeaways:

  • TabaPay has decided not to purchase the assets of Synapse, a troubled banking-as-a-service startup, despite previous plans to do so.
  • Despite positive earnings reports, fintech companies Dave and Affirm saw their stocks drop significantly on May 10.
  • Monzo, a challenger bank, has raised another $190 million to expand its international presence, particularly in the U.S.
  • Digital banking startup Mercury is transitioning into a SaaS company, adding software to its bank accounts to allow business customers to pay bills, invoice customers, and reimburse employees.
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