As reflected in our recent report on angel investors in payments, fintechs have faced an increasingly challenging funding environment in recent times amid tough conditions in the wider market. Having said this, there were still some significant funding stories for payments companies in Q2 2023.
Some of the biggest funding rounds were for companies that are pushing for greater financial inclusion, particularly in Asia and Africa. Indian mobile payments platform PhonePe has raised a total of $2.6bn to provide money transfers via its app, which enables payments through the UPI instant payment system.
Meanwhile, South-Africa based Tyme Bank received $78m, which it will use to expand into Southeast Asia. Visa also launched a massive new accelerator programme for African startups in June, reflecting its faith in the continent’s development.
Banks feature as major backers across a number of rounds, with JPMorgan Chase contributing to $150m in debt financing for AP platform Tipalti, while Citi Ventures (owned by Citi) helped raise $60m for Mexico-based spend management company Clara. Though several of the companies here have a clear consumer focus, B2B payments were also represented amidst the funding rounds, with Thunes receiving $60m as part of a Series C.
While US-based companies feature prominently in our list, there’s a dearth of key funding rounds for companies headquartered in the UK – a reflection of economic volatility leading to more caution from investors.