Market Insights

Alt Credit and Financial Accessibility: Friday Dealbook for 12/6/2019

December 6, 2019

Big wins for financial inclusion and accessibility this week – KOHO and Migo raised $39.5 million and $20 million, respectively, while diversity-focused VC fund Harlem Capital Partners closed its first fund with $40 million. A 2018 FDIC study discovered that 25% of US households are either underbanked or unbanked; internationally, 1.7 billion people, approximately 22% of the world’s population, lack a bank account. This is a huge area of opportunity and will garner much attention and funding as global digital transformation continues to disrupt traditional banking.

 

The Top Deals Covered by OWI this Week

 

KOHO \ koho.ca \ Founded in 2014

Provider of an application based banking platform intended to simplify financial products available to everyone. The company’s platform helps users to complete their day to day banking operations while offering tools such as goals, cash flow projections, group spending, spending insights and categorizations, enabling users to manage their expenses and banking operations on the go.

The company raised CAD 52 million (approximately USD 39.5 million) of Series B venture funding in a deal led by Portag3 Ventures and Drive Capital on November 28, 2019, putting the company’s pre-money valuation at CAD 48 million. National Bank of Canada and Greyhound Capital also participated in the round. The funds will be used by the company to further accelerate its growth and build new products and services aligned with what Canadians need.

 

Salv \ salv.com \ Founded in 2018

Developer of anti-money laundering (AML) technology designed to cure the world of financial crime with smart and easy tools. The company’s platform covers online transaction screening, offline monitoring, sanctions screening, risk-based approach, and governance, enabling banks and fin-techs to take charge of AML with modern tools, reduce money laundering and financial crime.

The company raised $2 million of seed funding in a deal led by Fly Ventures on December 3, 2019. Passion Capital, Seedcamp, Maximilian Tayenthal, Ott Kaukver and Taavi Kotka also participated in the round.

 

Migo \ migo.money \ Founded in 2013

Provider of a credit scoring and loan application platform designed to offer access to formal credit. The company’s platform uses sophisticated algorithms to analyze multiple data sources and cost-effectively predict default risk, as well as offers an end-to-end platform to apply for loans through mobile, enabling both banked and retail consumers to receive instant loan approvals.

The company raised $20 million of Series B venture funding in a deal led by Valor Capital Group on December 3, 2019, putting the company’s pre-money valuation at $140 million. Africinvest, Cathay Innovation, The Rise Fund and Velocity Capital Fintech Ventures also participated in the round. The funds will be used for talent acquisition and international growth.

 

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Investor Highlight

 

Greyhound Capital \ greyhoundcapital.com \ Founded in 2015

Greyhound Capital is a specialist growth equity investor focusing globally on subsectors where technology is transforming the way people spend, eat, move, work and live. The firm focuses on subsectors of traditional, everyday industries where technology adoption allows for both better and cheaper alternatives to what was previously available. Founded in 2015, the firm is headquartered in London, United Kingdom.

Active Portfolio – 23

Investments (TTM) – 14

Med. Round Amount – $30.00M 

Med. Valuation – $636.59M

Exits – 2

 

Deal History

In the past year, Greyhound Capital has invested in the following 6 identity companies:

Albo

KOHO

Lunar Way

Marqeta

N26

Petal

 

*Source: PitchBook Data Inc. with proprietary keyword searches set by OWI Analysts