Five fintechs on the verge of unicorn status
The fintech sector is experiencing lightning growth, with a number companies on the brink of joining the coveted unicorn club – a title given to privately-held startups valued at over $1bn.
According to recent data from Crunchbase, analysed by investment bank Panmure Liberum, a handful of fintech firms are leading the charge, with valuations upwards of $600m.
These companies span various financial services, from digital banking to trade finance, and are attracting substantial investment.
Commenting on the data, Panmure analyst Shonil Chande said: “Fintech themes are very well represented, and as one might imagine, so is AI.”
And while the US dominates the lists of unicorns and emerging unicorns across all sectors, as might be expected, the UK ranks fourth behind the US, China, and India.
Here are the top five fintechs that could soon become the industry’s next unicorns:
1. Tymebank
In the lead is South Africa’s Tymebank, a digital bank focused on providing financial services to underserved markets. With a post-money valuation of $965m (£756m), the company is just shy of the unicorn threshold. Tymebank’s growth has been bolstered by significant investments from Blue Earth Capital and Norrsken22.
2. Stenn Technologies
Next is UK-based Stenn Technologies, a non-bank trade finance provider with a post-money valuation of $900m (£705m). Stenn helps global exporters by purchasing their receivables, offering much-needed liquidity. Centerbridge Partners is the firm’s leading investor.
3. Sygnum
Switzerland’s Sygnum, also valued at $900m (£705m), ranks third. The digital asset bank, backed by lead investor Azimut Holding, provides a range of services including custody, brokerage, and asset management for digital assets.
4. Curve
The UK’s Curve, a challenger to Apple Pay, holds a post-money valuation of $850m (£666m). Supported by Samsung NEXT’s Q Fund, Curve consolidates all bank cards into a single smart card and app, offering unique features like the ability to retroactively switch charges between cards for up to two weeks after a purchase.
5. Juni
Swedish fintech Juni rounds out the top five with a post-money valuation of $755m (£591m). Backed by Mubadala Capital Investors, Juni provides a banking platform tailored for e-commerce and online marketing companies, featuring perks such as cashback on ad spend and streamlined invoice management.
Other UK companies in the top ten include fintechs Paysend and Tide, with valuations of $719m (£563m) and $650m (£509m), respectively.
It comes as total UK fintech investment almost tripled in the first half of 2024, at $7.3bn (£5.7bn) over the six months, up from $2.5bn (£2bn) during the same period in 2023, according to figures from KPMG.
British fintechs attracted more funding than their EMEA counterparts combined, the data showed, although dealmaking volumes continue to struggle.