7 FinTech funding rounds that took place in America in November 2022

By Edlyn Cardoza

FinTech refers to software and other modern technologies used by businesses that offer automated and enhanced financial services. FinTech in our daily life is mobile payment apps, Cryptocurrency and Blockchain, such as Bitcoin and Gemini. In the future, the range of FinTech services is predicted to transform the market even more with AI and machine learning and will make FinTech products an integral part of our digitized lives.

FinTech refers to the synergy between finance and technology, which improves business operations and delivers financial services. FinTech can take the form of software, a service or a business that offers technologically advanced ways to streamline financial processes by disrupting traditional methods.

Studies have shown that the COVID-19 pandemic has negatively impacted the FinTech ecosystem. The number of FinTech deals has taken a hit as investors choose mature companies over early-stage deals to put their money into.

The following are 7 FinTech funding rounds that took place in America in November 2022:

Achieve, one of the leaders in digital personal finance, announced that it has raised a new debt facility totaling $225 million with participation from O’Connor Capital Solutions, the private credit unit of UBS O’Connor LLC, and others, including a multi – trillion dollar asset manager. The debt facility is fully committed.

The capital will fuel Achieve’s transformation by accelerating technology investment and development; enhance both high-tech and human-touch experiences for members and consumers; strengthen marketing and branding; and support research and development of new technologies and offerings that will meet the growing personal finance needs of this underserved market.

Lendbuzz, a FinTech company disrupting the auto finance market using AI and machine learning algorithms, announced that it closed a $150 million credit facility with JP Morgan.

This is the second credit facility between the investment bank and the fintech company in 2022 (in January JP Morgan extended a line of credit to Lendbuzz), and in April 2022 JP Morgan acted as underwriter on a broadly syndicated ABS transaction.

Novo, the powerfully simple FinTech platform for small businesses, announced that GGV Capital has joined the company’s Series B as a strategic investor with an additional $35 million. This brings FinTech’s Series B to $125 million and total equity funding to more than $170 million. Robin Li, principal, GGV Capital, will join the board as an observer.

Novo announces this additional capital amid significant growth for the company. The company has surpassed $12 billion in lifetime small business transactions and has acquired more than 180,000 small business customers.

Emerging markets venture capital firm Quona Capital has closed its third FinTech fund at $332 million, significantly above its $250 million target. This fund brings the company’s total committed capital to over $745 million.

Quona focuses its investments on innovative technology companies that expand access to financial services for underserved consumers and businesses in Latin America, India, Southeast Asia, Africa and MENA. Quona Capital was established as an independent venture capital firm in 2015 by co-founding managing partners Monica Brand Engel, Jonathan Whittle and Ganesh Rengaswamy.

Sixth Street, a global investment firm, announced the final closing of funds totaling $4.4 billion in new capital to invest in high-growth businesses through the firm’s Sixth Street Growth platform. The funds closed on their hard ceiling. Sixth Street’s previous growth fund closed in 2019 with $2.2 billion in committed capital and invested in equity stakes in market-leading software, FinTech and healthcare IT companies, including Airbnb, AvidXchange, Bloomreach, Datavant, Fullsteam, Kaseya, MDLIVE, SnapLogic and Sprinklr, among others.

Earlier this year, the investment firm announced the formation of its More than Capital (MtC) business to further enhance the value Sixth Street provides to its current and future portfolio companies.

Zest AI, one of the leaders in underwriting automation with more accurate and inclusive lending insights powered by AI, announced that the company has raised over $50 million in a new growth round. The round was led by existing global software investor Insight Partners and new investor CMFG Ventures, with participation from CU Direct, Curql, Suncoast Credit Union, Golden1 Credit Union, Hawaii USA Federal Credit Union and NorthGate Capital.

Zest AI plans to use the new funding to rapidly expand access to AI automated credit underwriting for all lenders. By expanding access to this technology, Zest AI will provide more accurate and consistent underwriting decisions – leveling the playing field for all borrowers and promoting a more inclusive economy.

ZSuite Tech, a financial technology company that powers financial institutions with unbundled digital accounts that include escrow, subledger, subledger, FBO and trust accounts for commercial customers, announced that it has completed its $11 million Series A funding round. This round was completed by Independent Community Bankers of America (ICBA) and BankTech Ventures, LP (BTV).

ZSuite Tech is one of eight leading banking technology companies selected by BTV to receive funding. ZSuite will use the capital to scale operations and product development to meet the growing market demand for advanced digital cash and treasury management tools.