The Sizzling Global Payroll Space and Neobank Dave’s Financial Triumph
A Flurry of Deals in the Global Payroll Arena
The global payroll space is experiencing a surge of activity, with several noteworthy deals taking place this week. Deel, a prominent player in the industry, announced its acquisition of PaySpace, an African-based payroll and HR software and services company. This marks Deel’s largest acquisition to date, coinciding with the company surpassing $500 million in annual recurring revenue (ARR). Meanwhile, Remofirst, a startup aiming to compete with the likes of Deel and Rippling, secured $25 million in Series A funding. Additionally, UAE-based RemotePass raised $5.5 million in a Series A round led by Istanbul-based 212 VC. The global payroll space is undeniably experiencing a period of rapid growth and intense competition.
Neobank Dave Achieves Profitability and Stock Boost
In a positive turn of events, neobank Dave reported its first profitable quarter as a public company. The company achieved adjusted EBITDA of $10 million in the fourth quarter and GAAP net income of $200,000. Dave also exceeded guidance for the 2023 fiscal year, with a 26% increase in non-GAAP operating revenue, largely attributed to its ExtraCash offering. The company’s stock experienced a significant boost following the announcement, opening at $22.46 on March 4, reaching a new 52-week-high of $43.99 on March 7, and closing at $36 on March 8.
Funding Rounds and Acquisitions
- Colombian payments startup Yuno raised $25 million in Series A funding, reaching a valuation of $150 million.
- London-based challenger bank Monzo secured $430 million in a late-stage funding round, achieving a post-money valuation of $5 billion.
- Paris-based business banking startup Qonto acquired Regate, an accounting and financial automation platform, using an undisclosed portion of its cash reserve.
- Harness Wealth expanded into the tax advisory space and raised a $17 million extension to its Series A round.
- The Artemis Fund, which focuses on investing in underrepresented founders in fintech, commerce, and care, closed its second fund with $36 million in capital commitments.
Industry Updates and Developments
Apple’s iOS 17.4 Update and FinanceKit API
Apple’s iOS 17.4 update primarily focuses on adapting to the EU’s Digital Markets Act regulation. However, the company has also introduced a new API called FinanceKit, which allows developers to fetch transactions and balance information from Apple Card, Apple Cash, and Savings with Apple.
SOLO: Revolutionizing Financial Data Collection
Georgina Merhom aims to disrupt the status quo with SOLO, a first-party data collection and reporting engine that integrates user-permissioned data sources, such as financial transactions, online records, and digital footprints, to provide a more comprehensive view of an individual’s financial behavior.
PayPal Launches “Tap to Pay” for iPhone Merchants
PayPal announced the launch of “Tap to Pay” for merchants using an iPhone through the Venmo and Zettle apps in the U.S.
“For more secure communications, click here to contact us, which includes SecureDrop (instructions here) and links to encrypted messaging apps.”
4 Comments
Oliver Davis
Payroll startups are shaking things up. Wonder how long before the big players catch on
Liam Thompson
These payroll innovators might just give the established companies a run for their money
Ethan Walker
Curious to see how these startups will handle compliance and regulatory challenges across different regions
Payroll disruption is inevitable. The real question is, who will emerge as the frontrunners