Europe’s most valuable fintech, and which startups became unicorns this year

Welcome to TechCrunch Fintech! This week, we’re looking at Revolut’s reported valuation hike, fintech unicorns, the Disrupt Fintech Stage, and more.

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The big story

Revolut reportedly told staff last week of plans to sell up to $500 million worth of existing shares at a $45 billion valuation, according to the Financial Times. This is notable because, if true, it would make the banking giant Europe’s most valuable startup. The valuation also marks a significant jump from the $33 billion Revolut was valued at in 2021. As the FT noted, the company is “one of the few fintechs to have increased its valuation since a slowdown in venture capital hit the sector in the past two years.” In late July, Revolut was granted a banking license from the Prudential Regulation Authority (PRA) in the U.K. — a significant milestone for the London-based fintech company, particularly since it had been trying to secure this license since 2021.

Analysis of the week

So far this year, 38 unicorns have been minted in the U.S. in all of 2024, according to an analysis by TC’s Dominic-Madori Davis. Of those 38, three were in the fintech space:

Altruist — $1.5 billion: This fintech startup, which offers investment management for independent registered investment advisers, was founded in 2018. It raised a $169 million Series E in May, led by ICONIQ Growth, valuing the company at $1.5 billion.

Aven — $1 billion: Aven, founded in 2019, is a consumer credit card company. It reached a $1 billion valuation after closing a $142 million Series D led by Khosla Ventures and General Catalyst, according to CB Insights.

Octane — $1.1 billion: A company that offers instant financing on mowers and recreational vehicles, Octane raised $50 million in April, giving in a post-money valuation of $1.11 billion. 

Dollars and cents

A new form of alternative investing: FranShares is a Chicago-based startup that wants to offer investors another form of passive income: the chance to invest in franchises for as little as $500. The company has raised $4.2 million in seed funding led by Chicago Ventures to grow its business. 

We’ve been covering U.S.-based insurtech startup Faye since 2022, first with its seed round and then with its Series A round in 2023. It seems they continue to be on a roll, last week announcing $31 million in Series B funding. What is keeping this online insurance company on the rise?  Well, it would appear to be the way it combines travel insurance, assistance while you are away from home, and a range of financial solutions, packed inside a comprehensive smartphone app. It might be said that in the way Lemonade managed to hit a millennial generation with a sexier-packaged insurance platform, Faye has been plowing a similar field. 

What else we’re writing

Scoop: Alex Cook, a partner at Tiger Global who oversaw some of its largest fintech investments and India deals, is departing the firm after a tenure of nearly seven years, three people familiar with the matter told TechCrunch. Cook has briefed multiple people around him about his departure news over the past week, although he hasn’t explained why he’s leaving. 

The serious, long-term negative impact of the bankruptcy of banking-as-a-service (BaaS) fintech Synapse will be significant “on all of fintech, especially consumer-facing services,” one observer has said. In the wake of that company’s collapse, other startups in the space are working hard to prove that not all BaaS companies are created equal. Partners to fintechs — Unit CEO and co-founder Itai Damti, Synctera CEO and co-founder Peter Hazlehurst, and Treasury Prime general counsel and chief compliance officer Sheetal Parikh — are working overtime to ensure their companies are operating in a compliant manner. The trio will join us onstage at TechCrunch Disrupt 2024 to discuss the challenges facing the industry and how their offerings are being built to protect the customers served by their fintech clients.

High-interest headlines

Evolve hires ex-con Fmr Synapse compliance chief to aid recon efforts, sources say

Insurance comparison site The Zebra buys Marble

Bilt Rewards elevates valuation to $3.25BN with new $150M investment (TC covered Bilt’s last raise here.)

MUFG buys stake in Philippine fintech GCash for $393 million

Brazilian receivables marketplace Monkey Exchange raises $11 million

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