F|T: The FinTech Times – PayPal spent $1 billion on Xoom, now faces pressure to sell

Welcome to FinTech Times, a weekly newsletter covering the biggest FinTech news from around the world. If you want to read F|T before anyone else, be sure to subscribe using the form at the bottom of this page.

Bloom Raises $7 Million to Make Reverse Home Loan Applications Easier (BETAKIT)

Toronto-based Bloom has raised $7 million in Series A funding CAD to make it easier to apply for reverse mortgages.

Bloom said their platform has been actively expanding since launching in 2021. It claims to have extended nearly $100 million CAD to homeowners in Ontario and British Columbia to date.

Crypto’s Most Influential Companies Often Follow Their Own Rules – Even After FTX’s Collapse (BNN BLOOMBERG)

The lack of effective corporate governance and due diligence performed on FTX’s books raised eyebrows around the world. But to watchers of the crypto industry, it is not an unknown story.

Binance exits Canada as crypto trading platforms feel broader impact of tighter regulations (BETAKIT)

Binance, the world’s largest crypto trading platform by daily trading volume, is joining other crypto firms in pulling out of the Canadian market amid mounting regulatory pressure.

Join Sage Intaact on May 25 at 11am PT/2pm ET to hear insights from CEO of KeyBanc Capital Markets and David Appel, Head of SaaS at Sage on how to design a story that concretely demonstrates your company’s value to investors.

In this webinar you will learn how to attract capital investment through the following:

• Data-driven storytelling through SaaS metrics and meaningful underlying business dynamics
• Demonstrate market adaptation and identify where your company shines/areas for improvement
• To showcase data that investors want to see from seed to growth stage

Register today.

The Bank of England plans to reject Revolut’s bid for a banking licence
(THE TELEGRAPH)

The Bank of England has told the Treasury it plans to reject Revolut’s application for a banking licence, following a two-year campaign by Britain’s most valuable fintech company.

It said the company’s initial application would be rejected due to concerns over its balance sheet.

Mayor Tory’s resignation, competing bids and financial pressure on provincial and federal governments put Collision’s future in Canada in doubt (BETAKIT)

While major North American technology conference Collision has privately communicated intentions to extend its stay in Toronto for at least another year, no official agreement has been reached, BetaKit has learned. Securing that agreement may be more difficult than in previous years.

The conference has increased its request to north of $40 million CAD for an extended stay of three years, as five other cities vie to host the conference.

PayPal, under shareholder pressure, looks set to sell Xoom
(THE INFORMATION)

PayPal has been seeking buyers for Xoom, the international money transfer service it bought for roughly $1 billion in 2015.

The selling effort could signal that activist investor Elliott Management, which accumulated a stake last year, is having an impact on PayPal’s strategic thinking.

Small business banking platform Vault launches with backing from Google’s Gradient Ventures (BETAKIT)

Vault is the latest Canadian startup looking to make banking easier for small to medium businesses, securing $5 million CAD in funding to date.

While Shafik and Aziz see their platform as unique, they are far from the first entrepreneurs to see a need to make Canadian banking easier for SMEs.

Creditors of Quadriga crypto scam to receive 13% of lost funds in payout (THE GLOBE AND MAIL)

Former users of QuadrigaCX will receive 13 percent of the funds they had stored with the cryptocurrency exchange when it collapsed into bankruptcy following the death of its founder more than four years ago.

More than 17,600 claims were submitted, with amounts ranging from a few hundred dollars to a few million dollars.

How Inkbox CFO Louise Hucal handled the process of being acquired by a global company (BETAKIT)

Louise Hucal has worked in Fortune 500 companies and been involved in several M&A deals as an employee. However, pen maker Bic’s acquisition of temporary tattoo startup Inkbox felt more personal.

“We weren’t in ‘get acquired’ at all at that point and were still comfortably funded by our venture partners,” Hucal said.

Really easy to allow users to insure up to $300,000 as global bank failures provide better depositor protection (BETAKIT)

Calling it an industry first, Wealthsimple said its customers with cash accounts are now eligible for up to $300,000 in CDIC coverage.

This new offering comes after the collapse of Silicon Valley Bank (SVB), where the US Federal Deposit Insurance Corporation only insured deposits up to $250,000.

M-KOPA Raises $250M+ Debt, Equity for Its Asset Financing Platform (TECHCRUNCH)

M-KOPA, the asset financing platform that offers underbanked African customers access to “productive assets” and the ability to pay for them via digital micropayments, has secured more than $250 million in new funding.

Québec attracted more venture funding than any other Canadian region in Q1 2023 (BETAKIT)

Despite a decline in venture funding both quarter-over-quarter and year-over-year, Québec attracted more investment than any other Canadian region in the first quarter of 2023.

Western Union rival Zepz lays off 26% of staff as fintech cuts continue (CNBC)

Money transfer group Zepz is laying off 420 of its roughly 1,600 employees as the fintech sector struggles with a tough macroeconomic environment.

It is the second time in less than a year that Zepz has laid off employees. In June 2022, Zepz implemented layoffs affecting around 5% of its workforce.

Alberta’s tech sector remained robust in Q1 2023 (BETAKIT)

According to briefed.in’s latest report, Alberta startups raised $225.5 million in the first quarter of 2023. This represents a 30 percent increase in investment from the previous quarter and a 10 percent increase year over year.