A financial technology firm uses technology to offer financial solutions, including investment options, money transfer services, loans, and money management. More people are investing in financial technology due to its potential.
The investment in financial technology companies reached $148 billion in 2018 and $215 billion in 2019. The following fintech companies are considered the most valuable globally in 2022.
SoFi- Founded 2011
SoFi specializes in personal loans, mortgages, refinancing, and student loans. Four Stanford Graduates founded the company in 2011, intending to offer affordable loans to students.
SoFi got over $650 million from equity and debt financing between 2012 and 2014. Some of the investors included Baseline ventures and Morgan Stanley. Moody’s awarded SoFi an AAA rating in 2016, making it the first online lender to receive the rating.
The firm had facilitated loans worth more than $2 billion by mid-2016. Qatar Investment Authority invested $500 million in May 2019 at a $4.3 billion valuation.
Wise- Founded 2010
Wise has cemented its position in the financial technology sector by allowing people to transfer money globally. The platform, formerly known as wise, enables people to transact more than 750 currency pairs.
Taavet Hinrikus and Kristo Kaarmann founded the platform in 2010. Before starting the company, Taavet worked for Skype, while Kristo was a financial advisor.
The company received $6 million in 2013 from Valar Ventures, the first significant investment. More investors got on board between 2013 and 2016, including Andreesen Horowitz and Richard Branson, raising $117 million.
Wise received unicorn status in May 2016 after a $1.1 billion valuation. The July 2021 public listing on the LSE raised Wise’s valuation to $11 billion.
Chime- Founded 2013
Chime runs its operations exclusively online, eliminating monthly charges and maintenance fees. The company collects its revenue from merchants’ card transactions.
One million users had registered on the platform by the end of 2018. The figure jumped to 6.8 million in 2019, and more than 8 million people were using the platform by February 2020.
Chime raised $200 million in March 2019 at a $1.5 billion valuation, gaining unicorn status. The company plans to raise $40 billion through an IPO.
Robinhood- Founded 2013
Robinhood allows customers to put money into investment options, such as publicly-traded companies listed on the US stock exchange, without charging high commissions.
Robinhood profits through the cash balancing process and margin lending. Millennials essentially constitute the company’s customer base. Robinhood raised $110 million in 2017 from venture capital firms like Greenoaks Capital and DST Global.
It was valued at $1.3 billion during this time, making it a unicorn startup. The company held its first IPO in July 2021 at a valuation of $32 billion.
