A look at LoanSnap’s troubles and which neobanks are having a moment | TechCrunch

Welcome to TechCrunch Fintech! This week, we’re looking at LoanSnap’s woes, Nubank’s and Monzo’s positive milestones, a plethora of fintech fundraises and more!

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The big story

AI mortgage startup LoanSnap is in trouble. The company is facing at least seven lawsuits from creditors and has been evicted from its headquarters in Southern California, leaving employees worried about the company’s future, TechCrunch has learned. LoanSnap has raised around $100 million in funding since its 2017 seed round, $90 million of which was raised between 2021 and 2023. While LoanSnap has not yet shut down, according to two employees, the vibe inside the company is harrowing as workers wait for clarity on the company’s future.

Analysis of the week

Neobanks are having a moment. Or at least some are. U.K.-based neobank Monzo revealed its first full-year pre-tax profit. The company first hit profitability last March, a milestone driven by its lending product and the U.K.’s high interest rates. Meanwhile, Brazilian digital bank Nubank became the most valuable financial institution in Latin America, surpassing Itaú, as reported by Bloomberg. The NYSE-traded company also took its first tentative steps into the mobile network realm, rolling out an eSIM (embedded SIM) service for travelers.

Dollars and cents

Relay, a business banking and money management service for SMBs, closed a $32.2 million Series B round led by Bain Capital Ventures.

Creator fintech Slingshot announced a $2.2 million pre-seed round, with participation from Dorm Room Fund, 1916 Enterprises, Key Partners Group, and Vincent Francoeur, former head of web and mobile at Blizzard.

European mental health insurance platform ifeel raised a $20 million Series B investment co-led by FinTLV Ventures and Korelya Capital. 

Forward announced $16 million in seed financing to take on Stripe and lead the future of integrated payments; Commerce Ventures, Elefund and Fiserv led the round. 

Romanian startup FintechOS has raised $60 million to help older banks and insurance companies fight back against neobanks.

Frich, a startup that aims to serve as a social financial community for the Gen Z population, raised $2.8 million in a seed funding round led by Restive Ventures.

Solutions by Text, a company that gives people a way to pay their bills and apply for loans via text messaging, secured $110 million.

Saudi Arabia-based Simplified Financial Solutions Company (SiFi), a spend management platform in the MENA region, has raised $10 million in a seed funding round.

What else we’re writing

Stripe, the world’s most valuable fintech startup, said on May 31 that it will temporarily move to an invite-only model for new account sign-ups in India, calling the move “a tough decision” as it navigates the country’s evolving regulatory landscape. The startup, which competes with Cashfree and YC-backed Razorpay in the country, will now focus on supporting a select number of businesses, particularly those focusing on international expansion.

Indian conglomerate Reliance Group is making its boldest consumer-facing move yet into financial services with the launch of JioFinance, an app that aims to be a one-stop shop for UPI digital payments, loans and insurance.

Also:

Germany’s financial regulator ends anti-money laundering cap on N26 signups after $10M fine

Ambani’s Reliance fires opening salvo in fintech battle, launches JioFinance app

High-interest headlines

Savings app CEO says 85,000 accounts locked in fintech meltdown: ‘We never imagined a scenario like this’

Robinhood gains on plan to repurchase up to $1B shares

Robinhood rolls out crypto API for US traders

Klarna CEO faces backlash for saying AI let marketing team ‘half the size it was last year’ do more work, saving millions

Deel taps Alviere to help global companies pay US workers

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