FinTech M&A doesn’t stop: FIS buys embedded finance startup Bond 🤯; More investors wipe 40% off Revolut valuation 😳; Sezzle’s masterclass on how to make BNPL profitable 💸
FinTech is Eating the World, 15 June
Hey Everyone,
Happy Thursday! Today’s issue is the best one yet (you will soon see why!). We’re going to look at the FinTech M&A that doesn’t stop as FIS buys Bond (what does it mean + 4 essential M&A spreadsheets to master the art of dealmaking), more investors slashing 40% off Revolut’s valuation (& why there’s no way Revolut’s worth $33B now + a few more deeper dives into the FinTech giant), and Sezzle’s masterclass on how to make BNPL profitable (you must steal their strategy!). Let’s jump straight into the spicy stuff 🌶
FinTech M&A doesn’t stop: FIS buys embedded finance startup Bond 🤯
The deal 🤝 Finance giant FIS FIS 0.00%↑ has acquired Banking-as-a-Service (BaaS) FinTech Bond in what the payment giant calls a small but important purchase for its platform strategy.
This joins a list of other big FinTech deals we have seen as of late, so let’s take a look.
ICYMI: Nasdaq acquires Adenza in one of the biggest FinTech M&As in 2023 😳
The global wealth management behemoth is born as UBS completes the acquisition of Credit Suisse 🦛
More on this 👉 Bond's embedded finance platform is designed to help firms quickly build and launch products, including commercial and consumer credit card offerings, as well as debit cards and accounts.
PitchBook notes that Bond was valued at $182 million the last time it raised money, in 2020. Since 2019, Bond has raised a total of $42 million in funding, as per Crunchbase.
Bond will reportedly add BaaS and embedded finance talent, accelerate the time-to-market of new FIS embedded finance capabilities, and tap into the acquired firm's strong sales relationships.
✈️ THE TAKEAWAY
Looking at the big picture 👀 It’s not 100% clear why exactly Bond has opted to get acquired (for FIS, it’s pretty obvious - it can build out its talent and tech capabilities, giving it an edge in an increasingly competitive landscape), but it’s interesting that it was a part of 25 Zombie FinTechs that were likely to be shut down according to Forbes (8 February):
Given it hadn’t raised money since 2020 might indicate that Bond probably has been facing financial issues (remember Railsr?). Zooming out, we must also note that the acquisition comes during a very difficult time in the worlds of technology, venture funding, and financial services. FinTech funding worldwide fell 12% in Q1, creating opportunities for companies with a little extra cash to spare. That’s why earlier this year Marqeta MQ 0.00%↑ acquired financial infrastructure startup Power Finance in a $275M deal while JPMorgan JPM 0.00%↑ closed its acquisition of Aumni. Also, that’s exactly why Visa V 0.00%↑ should reportedly buy Brazil-based PayTech Pismo in a deal that could top $1 billion and Fiserv is exploring takeover opportunities to grow its merchant-focused arm, Clover.
So if you’re a solid incumbent or a financially strong startup, this is a golden time to look for M&As.
Bonus:
These will supercharge your M&A strategy and include the following:
Financial Fact Book
Enterprise Value vs. Equity Value Bridge
Net Working Capital
Closing Balance Sheet