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Welcome to TechCrunch Fintech<\/a>! This week, we\u2019re looking at layoffs at BaaS startup Unit and car insurance company Loop, as well as Brex\u2019s decision to abandon its co-CEO model, Apple killing its Pay Later feature, and more!<\/p>\n To get a roundup of TechCrunch\u2019s biggest and most important fintech stories delivered to your inbox every Tuesday at 7:00 a.m. PT, <\/em>subscribe here<\/a>.<\/em><\/p>\n Unit<\/strong> is the latest banking-as-a-service startup to lay off staff, with co-founders Itai Damti and Doron Somech noting in a blog post <\/a>on June 17 that the company (last valued at $1.2 billion<\/a>) had let go of about 15% of its staff. (Synctera cut headcount<\/a> in March and Treasury Prime slashed its workforce by half<\/a> in February). Unit declined to share how many employees were impacted or how many remain. <\/p>\n In other BaaS news, the Federal Reserve has ordered Evolve Bank<\/a> (partner to Synapse and Mercury) \u201cto bolster its risk management programs around fintech partnerships as well as anti-money laundering laws.\u201d Meanwhile, the CEO of troubled fintech Synapse has reportedly raised $10 million<\/a> for a new robotics startup even while questions remain<\/a> on the whereabouts of $85 million in customer savings.<\/p>\n In an exclusive interview, Brex<\/a><\/strong> co-founders Henrique Dubugras and Pedro Franceschi told TechCrunch that the expense management company is abandoning its co-CEO model<\/a> in an effort to move faster and be more attractive to investors as the startup prepares for an eventual IPO. \u201cI think we\u2019re at a scale where we\u2019re starting to see some of the cracks in the co-CEO model,\u201d Dubugras said. \u201cWe thought this would enable much faster and better decision-making.\u201d Feels like Brex is growing up. The pair also said that a secondary sale of shares is likely to happen before it goes public. The company also told TechCrunch that it has launched a new checking account for businesses in partnership with Column<\/a>, a fintech started by Plaid co-founder William Hockey, as well as access to\u00a0Brex\u00a0business accounts at incorporation through Stripe Atlas.<\/p>\n Founded by two former Flexport accounting alums Mary Antony and Kelsey Gootnick, automated financial reporting fintech InScope<\/strong> has raised a $4.3 million seed round<\/a> led by Lightspeed Venture Partners. Speaking of Lightspeed, the firm also led a $35 million round<\/a> for Finaloop<\/strong>, which aims to ease burdens for e-commerce businesses through its accounting software.<\/p>\n India\u2019s largest wealth manager focused on ultra-high-net-worth individuals, 360 One WAM<\/strong>, has agreed to acquire<\/a> popular Indian mutual fund investment app ET Money<\/strong> for about $44 million.<\/p>\n AccountsIQ<\/strong>, a Dublin-founded accounting technology company, has raised \u20ac60 million<\/a> (about $65 million) to build \u201cthe finance function of the future\u201d for midsized companies.<\/p>\n Let there be Light<\/strong>! Danish startup exits stealth with $13 million in seed funding<\/a> to bring AI to general ledgers.<\/p>\n A little over a year after it was announced<\/a> at WWDC, Apple<\/strong>\u2019s U.S.-only Pay Later feature is no more<\/a>. As TC\u2019s Brian Heater writes: \u201cPay Later\u2019s life was extraordinarily short, having officially launched in late March 2023. Ultimately, however, the move isn\u2019t surprising. Apple announced at last week\u2019s WWDC 2024<\/a> that users would be able to access loans through third-party app Affirm<\/a> through Apple Pay.\u201d<\/p>\n Loop<\/strong>, the car insurance company co-founded by Harlem Capital co-founder John Henry, has laid off staff as the company struggles with fundraising. Dominic-Madori Davis gives us the scoop<\/a>.<\/p>\n Wells Fargo<\/strong> bet on a flashy rent credit card<\/a>. It is costing the bank dearly, as reported by the Wall Street Journal. TC covered the startup\u2019s $200 million raise<\/a> earlier this year. But both companies deny any troubles<\/a>.<\/p>\n Airbase adds analytics, vendor management to spend orchestration platform<\/a><\/p>\n Intuit to acquire Zendrive to expand usage-based auto insurance<\/a><\/p>\n Rental screener Findigs raises $27M in Series B funding\u00a0<\/a><\/p>\n Want to reach out with a tip? Email me at maryann@techcrunch.com<\/a> or send me a message on Signal at 408.204.3036. You can also send a note to the whole TechCrunch crew at tips@techcrunch.com<\/a>. For more secure communications, <\/em>click here to contact us<\/em><\/a>, which includes SecureDrop (<\/em>instructions here<\/em><\/a>) and links to encrypted messaging apps.<\/em><\/p>\n<\/div>\nThe big story<\/h2>\n
Analysis of the week<\/h2>\n
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