Welcome to TechCrunch Fintech! This week, we’re wanting on the continued fallout from Synapse’s chapter, how Layer needs to disrupt SMB accounting, and far more!
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The massive story
The prospects for troubled banking-as-a-service (BaaS) startup Synapse went from dangerous to worse final week when a U.S. Trustee filed an emergency movement asking to transform the corporate’s debt reorganization Chapter 11 chapter right into a liquidation Chapter 7 resulting from “gross mismanagement” of its property. Apparently, as much as 20 million fintech depositors are in danger because of the chapter. As Fintech Enterprise Weekly’s Jason Mikula studies, “Quite a few finish customers of fintechs which have had their skill to entry their funds frozen shared the devastating influence it has had on their lives with the court docket and the lots of of attendees dialed in to the listening to [on Friday].” Sadly, the fallout from Synapse’s collapse continues.
Evaluation of the week
There appears to be an actual urge for food for an alternative choice to QuickBooks, the legacy accounting various for SMBs, judging by the eye this story on Layer’s $2.3 million elevate acquired. Layer is leaning into what it describes as a greater consumer expertise by means of embedded accounting. Its clients are these working with small and medium-sized companies to supply accounting and bookkeeping options inside their very own merchandise. Higher Tomorrow Ventures led the pre-seed funding into the startup and was joined by a gaggle of executives at corporations similar to Sq., Plaid, Unit and Examine.
{Dollars} and cents
PayHOA, a beforehand bootstrapped Kentucky-based startup that gives software program for self-managed home-owner associations (HOAs), is an instance of how real-world issues can translate into alternative. It simply raised a $27.5 million Sequence A spherical in an setting the place almost $30 million Sequence A rounds are now not widespread.
Purchase now, pay later providers have grow to be so ubiquitous that BNPL might as nicely simply be one other approach to say “debt.” However in Mexico, the place BNPL platform Aplazo operates, a big underbanked inhabitants makes BNPL extra like an alternative choice to money. A latest $45 million Sequence B spherical led by QED Buyers ought to assist it additional increase its attain, each digital and bodily.
Talking of QED, it additionally led a $10 million spherical into Kudos, which makes use of synthetic intelligence to determine shopper spending habits so it could actually then present extra personalised monetary recommendation.
Aeropay, a supplier of pay-by-bank options for companies that started off serving to hashish retailers and gaming corporations with their funds, is now coming into into Visa’s and Mastercard’s territory by innovating the fee networks. And it’s simply raised $20 million in a Sequence B spherical.
What else we’re writing
The Shopper Monetary Safety Bureau (CFPB) is suing SoLo Funds, a fintech firm that allows peer-to-peer lending, alleging that the corporate used “digital darkish patterns” to deceive debtors and illegally took charges whereas promoting to customers that there have been no charges.
Excessive-interest headlines
CFPB takes motion towards Chime Monetary for illegally delaying shopper refunds
Deel companions with Carta to supply fairness tax withholding options
Insurtech Cowl Genius raises $80M in Sequence E funding (TC lined its final elevate right here)
Yendo raises $165 million for ‘vehicle-secured’ bank card
FinLocker raises $17M in Sequence B funding spherical
Bunq enters insurance coverage market through new partnership
Sq. provides new built-in options for eating places
Embedded accounting startup Teal raises $8M
ICYMI: Baselayer raises $6.5M in seed funding
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