LoanSnap’s Challenges and Rising Neobanks


Welcome to Truth Voices Fintech! This week, we delve into LoanSnap’s troubles, notable achievements by Nubank and Monzo, numerous fintech fundraises, and more!

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The big story

AI mortgage startup LoanSnap is currently facing major challenges. The company is dealing with at least seven lawsuits from creditors and has been evicted from its headquarters in Southern California, creating a stressful atmosphere for its employees and raising concerns about the company’s longevity. LoanSnap has secured approximately $100 million in funding since its inception in 2017, with $90 million raised between 2021 and 2023. Although two employees indicated that the company hasn’t shut down yet, the internal atmosphere remains tense as workers await clearer information about the company’s future.

Analysis of the week

Neobanks are gaining traction. U.K.-based neobank Monzo announced its first full-year pre-tax profit, achieved last March, driven by its lending product and the U.K.’s high interest rates. Simultaneously, Brazil’s digital bank Nubank has become Latin America’s most valuable financial institution, surpassing Itaú, as reported by Bloomberg. Additionally, the NYSE-listed company is exploring mobile networks, launching an eSIM (embedded SIM) service for travelers.

Dollars and cents

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

Creator fintech Slingshot secured $2.2 million in a 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 a $16 million seed financing round to compete with Stripe and lead the future of integrated payments, with Commerce Ventures, Elefund, and Fiserv leading the round. 

Romanian startup FintechOS raised $60 million to help traditional banks and insurance companies compete against neobanks.

Frich, targeting the Gen Z demographic as a social financial community, raised $2.8 million in a seed funding round led by Restive Ventures.

Solutions by Text, which offers a way to pay 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, raised $10 million in a seed funding round.

What else we’re writing

Stripe, regarded as the world’s most valuable fintech startup, announced on May 31 that it will temporarily switch to an invite-only model for new account sign-ups in India. The decision was made as Stripe navigates the country’s evolving regulatory environment. The company, which competes with Cashfree and YC-backed Razorpay in India, will concentrate on supporting a select number of businesses, particularly those focusing on international expansion.

Indian conglomerate Reliance Group is making a significant foray into financial services with the launch of JioFinance, an app aimed to serve as a comprehensive platform for UPI digital payments, loans, and insurance.


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

Ambani’s Reliance enters fintech battle with the launch of 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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Mary Ann Azevedo
Mary Ann Azevedo
Mary Ann Azevedo has more than 20 years of business reporting and editing experience for publications such as Crunchbase News, FinLedger, Crain, Forbes and Silicon Valley Business Journal. She's earned numerous awards including the New York Times Chairman’s Award and others for breaking news coverage. Azevedo holds a Master’s degree in journalism from the University of Texas in Austin, where she currently lives.

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