Fintech

A Spelman College team won the Moguls in the Making competition, a collaboration between Ally Financial and the Thurgood Marshall College Fund. Their winning fintech platform, “Prospera,” aims to support women-owned small businesses in Detroit and beyond by fostering financial well-being. The competition engaged HBCU students in addressing economic mobility challenges, providing them with mentorship, learning experiences, and exploring AI’s role in business. Hampton University and North Carolina A&T State University secured second and third place, respectively, with innovative solutions addressing food insecurity and access to funding for small businesses.

Europe’s tech scene is showing signs of strength, challenging Silicon Valley’s dominance. Recent highlights include AI firm ElevenLabs’ valuation doubling to $6.6B, Mistral AI securing a 1.7B euro funding round, and Klarna’s successful NYSE IPO, valuing it over $17B. Investors see opportunities due to valuation discounts and a “born global” mindset among European startups. Challenges remain, including market fragmentation and the need for increased pension fund investment in venture capital. Initiatives like “EU Inc.” aim to address these issues by creating a unified regulatory framework.

European tech is showing signs of strength with recent activity including ElevenLabs’ valuation doubling, ASML’s investment in Mistral AI, and Klarna’s NYSE IPO valuing it over $17 billion. This has reignited discussions about Europe’s ability to compete with US and Asian tech ecosystems. However, challenges remain, including macroeconomic pressures, market fragmentation, and the need for pension fund investments in venture capital, hindering expansion. The “EU Inc.” initiative aims to address regulatory hurdles.

Klarna, the BNPL giant, debuted on the NYSE with shares surging 30% above the $40 IPO price, valuing the company at $15 billion. The IPO raised $1.37 billion. CEO Sebastian Siemiatkowski likened the event to a wedding, marking a milestone but highlighting ongoing challenges. Klarna’s strategic shift to banking services, particularly in the US, faces competition from Affirm and others. The BNPL sector is intensely competitive and faces increasing regulatory scrutiny, particularly in Europe. Sequoia, an early investor, saw significant returns, while SoftBank’s later investment faced valuation decline.

Klarna, the BNPL giant, priced its IPO at $40 per share, valuing the company at $15 billion. It raised $1.37 billion and will list on the NYSE as “KLAR.” The IPO reflects cautiously optimistic sentiment towards tech listings, despite economic uncertainty and competition. Klarna is expanding beyond BNPL to become a digital retail bank. While the company reported a recent net loss, revenue grew 20% year-over-year. $1.17 billion of the IPO proceeds will go to shareholders, and $200 million will go to the company.

Klarna, initially known for its BNPL model, is transitioning to a comprehensive digital bank ahead of its IPO. The IPO, expected to value Klarna at up to $14 billion, will test investor confidence in this pivot. Klarna faces the challenge of convincing investors of its neobank strategy, expanding banking services despite recent losses, while showing 20% YOY revenue growth. Its success hinges on demonstrating a path to profitability in a changing economic landscape, comparing itself with public peers like Affirm.

VCI Global’s fintech subsidiary, Credilab, reported a US$35 million loan book with 53% year-over-year revenue growth for the year ending June 2025. The company’s non-performing loan ratio remains below 3%, attributed to its AI-driven credit assessment system. Credilab secured conditional approval for a full online lending license in Malaysia, targeting the country’s US$64 billion SME financing gap. The platform offers instant loans and flexible repayment options to Malaysia’s underserved SME sector.

Klarna, the BNPL giant, is preparing for its NYSE IPO under the ticker “KLAR,” potentially raising $1.27 billion at $35-$37 per share, valuing the company up to $14 billion. Existing shareholders will offer a significant stake alongside Klarna’s new share issuance. Goldman Sachs, JP Morgan, and Morgan Stanley are joint bookrunners. Klarna’s Q2 revenue grew 20% to $823 million, but net loss widened to $53 million. The IPO marks a significant step for the fintech firm aiming to become a comprehensive financial “super app.”

Ryt Bank, Malaysia’s first AI-powered bank, backed by YTL Group and Sea Limited, aims to revolutionize banking with its AI-driven platform, prioritizing linguistic inclusivity by supporting Bahasa Malaysia and English. Its digital assistant, Ryt AI, powered by the local ILMU language model, handles financial tasks and offers personalized insights. The all-in-one app provides services for saving, spending, borrowing, and bill payments. Operating under Bank Negara Malaysia’s regulations, Ryt Bank employs multi-layered security measures. The launch highlights AI’s potential to reshape Malaysia’s financial sector by focusing on accessibility and cultural understanding.

SoFi Technologies (NASDAQ: SOFI) has priced its public offering of 71,942,450 shares at $20.85 per share, generating approximately $1.5 billion in gross proceeds. Underwriters have a 30-day option to purchase an additional 10,791,367 shares. The offering is expected to close on July 31, 2025, and SoFi intends to use the proceeds for general corporate purposes, including working capital and strategic opportunities. Goldman Sachs, Citigroup, and Mizuho Securities are acting as underwriters. SoFi offers a suite of digital financial services to over 11.7 million members.