The fintech scene is buzzing again, with big valuation leaps and some familiar names making waves. This week, we’re looking at exciting raises, Stripe’s shareholder sale, and a vibrant conversation with early-stage VC Sheel Mohnot. Here’s a snapshot of the latest.
The Big Story: Major Valuation Jumps
Last week saw some jaw-dropping moves in fintech fundraising. Tabby, a Riyadh-based fintech, secured $160 million in Series E funding, pushing its valuation to $3.3 billion—double the $1.5 billion it was worth just 18 months ago. The company, initially known for its buy-now-pay-later services, is now expanding its horizons.
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Meanwhile, Zeta, an Indian banking software provider, raised $50 million, bringing its valuation up to $2 billion—a solid increase from its $1.15 billion valuation in 2021. And Mercury, a digital banking platform, is reportedly in talks for a new funding round led by Sequoia, which could push its value above $3 billion—another hefty jump.
If these rounds are a sign of what’s to come, it’s starting to feel a bit like 2021, though not quite as feverish.
Stripe’s Next Move: A $85 Billion Valuation?
Stripe, the payments infrastructure giant, is reportedly looking to sell more shares, which could value the company at at least $85 billion. Multiple reports suggest this move could further cement Stripe’s dominance in the payments space.
The African Expansion: Raenest And Affinity Africa
In Africa, Raenest, a Lagos-based fintech offering multi-currency accounts, raised $11 million to expand its reach across the continent. The round was led by QED Investors. Meanwhile, Affinity Africa, a Ghanaian fintech, raised $8 million to push its mobile money solutions even further in a market where mobile payments dominate.
Comulate’s $20 Million Series B
Comulate, a company developing billing and revenue management tools for insurers, closed a $20 million Series B round. The company will use the funds to broaden its tech stack and scale operations.
Coinbase’s Return To India
After more than a year of absence, Coinbase is planning its return to India, where it ceased operations in 2022.
What Investors Say
Dima Mikhailov, Partner at Data Mining Technologies and a data-driven investor in fintech and deep tech shares his perspective on the key trends shaping the industry:
- AI, Compliance, and Embedded Finance: “Banks are adopting Agentic AI to automated decision-making. Despite the regulatory challenges, embedded finance offers significant value for all market players allowing fintechs to excel in innovation and customer acquisition and banks to focus on infrastructure and compliance.
- Banking-as-a-Service (BaaS): “Despite setbacks, BaaS remains vital. The collapse of Synapse and tighter regulations forced some banks, like Blue Ridge Bank, to scale back, but strong compliance models like Stripe and Column prove the model is sustainable.”
- Regulatory Uncertainty: “Fintech partnerships are slowing due to regulatory uncertainty. The FDIC’s new rules have increased compliance costs, causing delays. Marqeta’s stock, for example, fell 40% in Q3 2024 due to implementation delays.”
- Open Banking & Regulatory Developments: “Open banking requires significant effort to meet compliance standards, it simultaneously opens a crucial door to new possibilities. In October 2024, the Consumer Financial Protection Bureau introduced new U.S. open banking rules, covering deposits, digital wallets, credit cards, and BNPL, excluding payroll and investments. Europe awaits PSD3 in 2025, and Australia is expanding its Consumer Data Right (CDR) framework to nonbank lenders.”
- Embedded Finance: “Despite regulatory challenges, embedded finance is rising. Boston Consulting Group forecasts a $350B+ market by 2030, driven by small business adoption and growth in lending, insurance, payroll, and tax services.”
- Fraud Prevention & RegTech: “Over $1 trillion was lost to fraud in 2023. AI-powered scams are evolving faster than traditional fraud tools, driving demand for modern regtech solutions. Startups like Oscilar and Unit21 are leveraging AI for fraud detection. Agentic AI is transforming compliance, making KYB and risk assessments more efficient, with some regtech startups showing promising early traction including GreenLite, Vivox AI, and Parcha.”
“AI is reshaping industries at an unprecedented pace, but nowhere is its impact more profound than in fintech. The financial sector is evolving rapidly, driven by AI-powered infrastructure, regulation, and embedded finance,”
emphasizes Dima Mikhailov.
Conclusion: Fintech’s Resurgence
The fintech sector is showing signs of a major resurgence, with skyrocketing valuations and increased funding activity. From Tabby and Zeta setting new benchmarks in MENA and India to Stripe positioning itself for an $85 billion valuation, the momentum is undeniable. While some industry leaders are still navigating challenges, such as Coinbase’s return to India, the overall outlook for fintech looks promising. If these trends continue, we might just be in for a repeat of the explosive growth we saw in 2021. Stay tuned—2025 could be an even bigger year for fintech.
