UK-based fintech firm Monzo has been approached by several investment banks about a potential initial public offering (IPO), reported Business Insider. 

People aware of the matter told the publication that the fintech has received offers from banks eager to handle a prospective IPO. 

The neo-banking app is not likely to go public until late 2024 or early 2025 at the earliest, according to the sources, who stated that the pitches are still in the exploratory stage.
Typically, an IPO can take six months to a year, and given the weak market conditions, no formal talks between the parties have started yet. 

Monzo declined to comment on the development. 

Citing an investor update, the publication said Monzo claimed a 250% increase in annualised revenues to £440m in the twelve months up to December 2022. 
​
In addition to smaller rival Atom Bank, other European challenger fintechs Starling Bank and Zopa Bank have hinted that they may consider going public. 

​Read more here

Ingka Group, the owner and operator of most IKEA stores, said Wednesday it has invested 9 million euros ($9.6 million) in DirectID, a U.K.-based fintech specializing in credit risk, risk analytics and predictive modeling based on bank transaction data.

The company said the deal forms part of its strategy to strengthen the core retail business by investing in companies in areas such as digitalization, customer fulfillment, fintech and sustainability, that support its ambition to become more affordable, accessible, and sustainable.

DirectID provides advanced data to optimize credit and risk decisions, allowing better assessment of risk regardless of age, location, and past credit performance, it said.

Ingka has made the acquisition through its Ingka Investments arm, with the funding expected to help accelerate the market launch of advanced predictive models, expand the credit risk offering into new markets and accelerate development of models, it added.

See James Varga's LinkedIN post for more

The UK's Innovate Finance released news on the levels of investment in UK FinTech which shows it continues to increase despite global slowdown.

Highlights from the announcement include:

• Total capital invested in FinTech globally reaches $59bn – flat year-on-year
• UK FinTech sector continues to grow with investment reaching $9.1bn – a 24% year-on-year increase from 2021
• UK remains second globally in FinTech investment, behind the US, and the top destination of Europe
• Capital was spread across 3,045 deals – which is slightly fewer than 2021 which saw 3,401 deals in the first half of the year
• Global slowdown comes with some exceptions including the UK which recorded a 24% year-on-year increase from 2021
• Value of the top 5 biggest deals globally in the first half of 2022 was $5.0 bn, with Checkout.com, one of the top five from the UK. The largest deals from highest to lowest were for FNZ ($1.4bn), Trade Republic ($1.2 bn), Checkout.com ($1bn), Ramp ($748m) and Coda Payments ($690m)
• US received the most investment in the first half of 2022, bringing in $25bn in FinTech capital, with the UK firmly in second place with $9.1bn, rounded off by India ($3.9bn), Germany ($2.4bn) and France ($2.3bn)
• Some countries have seen notable drops in investment in the first half of 2022 including Mexico, Netherlands, South Korea, and China, all falling down the global rankings. 

Commenting on the findings, Janine Hirt, CEO of Innovate Finance the industry body, said: 

“It is fantastic to see that UK FinTechs are continuing to secure outstanding levels of investment – this is a testament to the strength of our ecosystem, including our innovative entrepreneurs and founders, strong and diverse talent pool, and a supportive government and regulatory framework. 

“It is critical that we now keep up this momentum. The UK is currently receiving more investment in FinTech than all of Europe, second only in the world to the US. We must continue to work together – industry, government and regulators – to build on this leadership and ensure the UK remains the best place in the world to start, build and scale a FinTech business. This will positively impact not only the financial services sector but the entire population of the UK as a whole who will benefit from new, innovative, and more effective products that drive greater financial wellness.”

Further Reading:

• Innovate Finance Press Release
• Innovate Finance Full Analysis
  

​

​

​Further announcements of investment in the thriving UK fintech sector this week with news that payments service provider Currencycloud has raised $80m (£61m) in funding to support the next round of its growth in this Series E round.

The new investment from global heavyweights including Visa, International Finance Corporation (a member of the World Bank Group), BNP Paribas, SBI Group and Siam Commercial Bank.

Michael Cogley Tech Correspondent, Telegraph (who has a portfolio of articles on fintech) reported that the London-headquartered firm will use much of the additional funds to add an extra 100 staff this year, bringing total headcount to over 300 people.

Currencycloud is a global payments platform built on smart technology that takes the complexity out of moving money. Its tools for cross-border payments are used by some of the world’s biggest fintechs, including Monzo, Revolut, and Starling. It has also recently added Visa to its client list.​
​
Sources:
Currencycloud - https://www.currencycloud.com/company/news/item/currencycloud-the-market-leader-in-embedded-cross-border-payments-secures-80-million/
Michael Cogley Tech Correspondent, Telegraph -
https://www.telegraph.co.uk/technology/2020/01/27/payments-firm-currencycloud-closes-61m-funding-round/?WT.mc_id=tmg_share_tw

​Posted by Peter Oakes (www.peteroakes.com)
#FintechUK #UKFintech
See also www.UKFintech.com www.FintechIreland.com