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

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The large story

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

Evaluation of the week

Petal is one other fintech firm that goals to assist the underserved “construct credit score, not debt.” Final Might, For Millionaires wrote concerning the firm’s $35 million increase and plans to spin off its information unit. Final week, Empower Finance introduced its plans to amass Petal, which apparently started searching for consumers final yr “when it was brief on money,” in accordance with Fortune. A spokesperson for Petal instructed me through electronic 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.Okay.-based fintech finest generally known as a shopper platform for international remittances, has raised a $10 million progress 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 progress, mixed with the brand new funding, doubles its valuation.

What else we’re writing

Brazilian startup Salvy, a cellular provider for companies, was the one firm primarily based in Latin America in Y Combinator’s newest batch, the accelerator confirmed to For Millionaires’s Anna Heim. That’s a big drop in comparison with cohorts that went by the accelerator throughout COVID when it was distant, but additionally more moderen lessons. For instance, there have been 33 Latin American corporations in Y Combinator’s Winter 2022 batch. Might the general state of the fintech sector be partly responsible? Traditionally, round one-third of the 231 Latin American corporations that went by 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

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

Stride and Utah set new precedents in benefits for independent workers

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

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

UAE’s fintech Fortis secures $20M in a Series A round 

Anrok hits a $250M valuation with a mundane idea: calculating

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