This week, we’re looking at Payoneer’s $61 million acquisition of Skuad, Robinhood and Dave’s second-quarter results, X’s progress on its payments system, and more. To get a roundup of TechCrunch’s biggest and most important fintech stories delivered to your inbox every Tuesday at 8:00 a.m. PT, subscribe here.
The Big Story
Last week, I got the scoop on publicly traded fintech Payoneer acquiring Singaporean startup Skuad for $61 million in cash, with the potential to pay up to $81 million. This was a pretty fast exit for Skuad founder Sundeep Sahi, who launched the company in 2019 with the aim of simplifying international hiring and had raised $19 million in venture funding.
Both Payoneer and Skuad are geared toward SMBs that operate internationally, particularly in emerging markets. Notably, rather than build out the tech itself, Payoneer decided to acquire Skuad and integrate its payroll and contract management products into its own offering.
Analysis of the Week
A couple of publicly traded fintechs posted strong results last week:
- Robinhood beat its second-quarter earnings expectations, posting 40% higher revenue of $682 million. Citizens JMP director of financial technology research Devin Ryant told Yahoo Finance that Robinhood had an ‘outstanding quarter’ that also saw ‘great profitability’ and new net deposits surge by 40%.
- Dave, a neobank, has 2.3 million paying members, 31% higher revenue of $80.1 million with $15.2 million of EBITDA. CEO Jason Wilk shared that CAC (customer acquisition cost) is down 26% year-over-year to $15.
When public fintechs are notching such strong numbers, that can bode well for their private counterparts.
Dollars and Cents
CloudPay, a joint venture in 1996 providing payroll and payments services to enterprises, has announced its acquisition of Skuad. The move is expected to expand CloudPay’s offerings in the SMB market and strengthen its position in the international HR space.
This deal demonstrates the growing importance of fintech solutions for small businesses and highlights the increasing competition among providers.
Topics
- Fintech
- TechCrunch Fintech
Mary Ann Azevedo, Senior Reporter, Fintech
http://www.twitter.com/bayareawriter
Mary Ann Azevedo has more than 20 years of business reporting and editing experience for publications such as FinLedger, Crunchbase News, Crain, Forbes, and Silicon Valley Business Journal. Prior to joining TechCrunch in 2021, she earned numerous awards including the New York Times Chairman’s Award and others for breaking news coverage.
She holds a Master’s degree in journalism from the University of Texas in Austin, where she currently lives.
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