Welcome to TechCrunch Fintech! This week, we’re how two fintech firms serving the underserved are faring, and extra!

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The massive story

PayJoy is an instance of an organization with constructive unit economics and a mission to assist the underserved. It’s not typically that we see these two issues intersect, so once we do, we get fairly excited. I wrote in regards to the firm’s milestone of attaining $300 million in annualized income and profitability final 12 months, whereas additionally managing to land $150 million in Sequence C funding. The corporate’s mannequin is exclusive: It helps individuals construct credit score via pay-as-you-go financing for smartphones. As soon as the telephones are paid off, prospects can apply for loans via PayJoy utilizing their gadgets as collateral. Learn all about its development right here.

Evaluation of the week

Petal is one other fintech firm that goals to assist the underserved “construct credit score, not debt.” Final Could, TechCrunch wrote in regards to the firm’s $35 million increase and plans to spin off its information unit. Final week, Empower Finance introduced its plans to accumulate Petal, which apparently started in search of patrons final 12 months “when it was quick on money,” in line with Fortune. A spokesperson for Petal informed me through e-mail: “Like Petal, Empower … makes use of money move underwriting for its suite of credit score merchandise. … With the Petal acquisition, it would quickly have a household of bank cards to enrich that providing.” Will we see extra M&A in 2024? I’m desirous to see.

{Dollars} and cents

TransferGo, the U.Ok.-based fintech greatest often called a client platform for international remittances, has raised a $10 million development funding spherical from Taiwan-based investor Taiwania Capital, with a view to increasing within the Asia-Pacific area. It final raised a $50 million Sequence C funding spherical in 2021. TransferGo claims its development, mixed with the brand new funding, doubles its valuation.

What else we’re writing

Brazilian startup Salvy, a cell service for companies, was the solely firm based mostly in Latin America in Y Combinator’s newest batch, the accelerator confirmed to TechCrunch’s Anna Heim. That’s a big drop in comparison with cohorts that went via the accelerator throughout COVID when it was distant, but additionally newer courses. For instance, there have been 33 Latin American firms in Y Combinator’s Winter 2022 batch. May the general state of the fintech sector be partly accountable? Traditionally, round one-third of the 231 Latin American firms that went via YC targeted on fintech. And with fintech funding on the decline, this might maybe partly clarify YC’s lack of LatAm curiosity.

Excessive-interest headlines

Traders circle ‘most hated’ fintech and e-commerce sectors

Stride and Utah set new precedents in advantages for impartial staff

US startup Parafin lands $125M warehouse facility from SVB and Trinity Capital

Tabs secures $7M seed funding to boost AI-driven accounts receivable platform

UAE’s fintech Fortis secures $20M in a Sequence A spherical 

Anrok hits a $250M valuation with an earthly concept: calculating

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