Unpacking Customer Discontent: Why Former Bench Users Are Voicing Their Concerns

Welcome to the latest updates from the fintech world! This week, we dive into the most pressing developments, including the challenges faced by Bench, Robinhood’s substantial settlement, exciting mergers and acquisitions, and notable fundraising events.

Bench Faces Data Access Issues

In a significant turn of events, Bench, an accounting startup, abruptly shut down on December 27 and was subsequently acquired by Employer.com in a fire sale. Customers of Bench are now discovering that retrieving their financial data is far from straightforward. Many users are expressing their frustration over the situation.

Bench has stated that the only way customers can access their data is by granting Employer.com permission. Unfortunately, the original entity that held this data has entered active bankruptcy proceedings, complicating access further.

Funding News in Fintech

Float Financial Secures $50 Million

Float Financial, a corporate card and expense management startup catering to the Canadian market, has successfully raised $50 million in a Series B funding round. Based in Toronto, Float differentiates itself from U.S. fintech competitors like Brex and Ramp by focusing exclusively on Canadian small and medium-sized businesses (SMBs).

Pryce Yebesi Launches Open Ledger

At just 24 years old, Pryce Yebesi has already achieved an exit by selling his crypto invoicing venture, Utopia Labs, to Coinbase. He recently announced the launch of his new company, Open Ledger, which integrates automated accounting software into existing enterprise solutions. Yebesi has raised $3 million in funding from Kindred Ventures and Blank Ventures.

NomuPay Expands with $37 Million Funding

NomuPay, a fintech focused on cross-border payments for merchants in Asia and the Middle East, has raised $37 million, achieving a valuation of $200 million. This funding will enable NomuPay to enhance its business operations and expand its reach.

Mergers and Acquisitions in Fintech

In notable M&A news, Moody’s has announced its acquisition of Cape Analytics, a geospatial AI startup, for an undisclosed amount. Additionally, Clearwater Analytics has agreed to acquire investment management platform Enfusion for a staggering $1.5 billion.

Regulatory Developments

In regulatory news, Robinhood has reached a $45 million settlement with the Securities and Exchange Commission (SEC) concerning several alleged violations, including issues stemming from a 2021 cybersecurity breach.

Global Trends in Digital Payments

As digital payment systems evolve into essential assets, India serves as a model for other countries aiming to lessen their reliance on Western payment networks like Visa and Mastercard.

Upcoming IPOs and Company Valuations

Groww, India’s largest retail stockbroker, is reportedly preparing to file for an IPO within the next 10 to 12 months, targeting a valuation between $6 billion and $8 billion, according to sources.

Recent Investments in HR Software

• Buk, a Chilean HR software provider, raised $50 million in Series B funding, increasing its valuation to approximately $850 million, up from $417 million in 2021.
• Humi, based in Toronto, has been acquired by Australian HR software company Employment Hero as it seeks to establish a presence in Canada.

Expansion Plans for Plaid

Fintech giant Plaid has announced plans to open a new office in Raleigh, North Carolina. Headquartered in San Francisco, Plaid currently employs over 1,000 individuals and has additional locations in New York, Washington, D.C., London, and Amsterdam. A spokesperson confirmed that Raleigh is the next step in expanding Plaid’s footprint to meet the growing demand for its technology.

Thank you for joining us for this week’s fintech update! Stay tuned for more insights next week.