The week has seen two fintech companies, DailyPay and Digital Onboarding, raise significant amounts of funding. DailyPay secured $175m in new investment, with $100m coming from an expanded secured credit facility capacity provided by Citi Group and over $75m in new equity financing led by Carrick Capital Partners. The funding will be used to fuel the company’s product innovation and expansion into new markets. Digital Onboarding, on the other hand, closed a $58m investment round led by Volition Capital. The company aims to consolidate its position as a leading digital engagement platform and SaaS provider for banks and credit unions.
The article suggests that these funding rounds, along with two other deals in the fintech space, point to a return to fintech investment by venture capitalists in 2024. After a significant dip in funding in 2023, analysts and commentators are confident that the investment landscape will stabilize this year. Factors such as a decrease in interest rates and reduced threats of a recession are expected to contribute to a more favorable investment market. Nigel Morris, Managing Director at QED Investors, believes that 2024 will resemble a pre-pandemic year in terms of fintech investment.
Overall, the article highlights the successful funding rounds of DailyPay and Digital Onboarding, as well as the broader trend of increasing investment in the fintech sector. This suggests positive prospects for fintech funding in 2024, with a more stable investment environment and favorable market conditions.
