TechCrunch Fintech: Affirm, Klarna's Financials & Real Estate Startups

This week's TechCrunch Fintech newsletter focuses on the latest developments in the world of fintech, particularly highlighting the impressive financial results of both Affirm and Klarna. Additionally, it delves into a new real estate startup and its innovative flat-fee model, as well as the growth of a digital bank targeting immigrants.

The Big Story: Flat-Fee Real Estate

The real estate industry continues to be a hotbed for fintech innovation. Landian, a new startup, has emerged from stealth, offering a disruptive flat-fee model that leverages recent changes in real estate commission regulations.

Landian's co-founder was involved in a successful lawsuit against the National Association of Realtors (NAR), paving the way for these changes.

Landian provides a flat-fee option of $1,799 for up to five home tours and two offer prep sessions, or buyers can opt for à la carte services at $49 per tour and $199 for offer prep.

Digital brokerage Redfin has expressed its views on the flat-fee model, a perspective that can be found in the article linked within the newsletter.

Analysis of the Week: BNPL on Fire

The buy now, pay later (BNPL) sector continues to thrive, as evidenced by the recent financial reports of both Affirm and Klarna. Both companies reported impressive results, surpassing analysts' expectations.

Affirm exceeded revenue and earnings expectations, with a 48% year-over-year revenue increase and a loss per share of 14 cents, significantly better than the projected 51 cents.

The strong performance boosted Affirm's stock price, closing on August 30 at $44.01, a significant jump from $31.58 two days prior.

Klarna reported a 27% revenue increase in the first half of 2024 while maintaining flat adjusted operating expenses.

There is news concerning Klarna's board considering the removal of Mikael Walther, a close associate of founder Victor Jacobsson, as reported by the Financial Times.

Dollars and Cents: Digital Bank for Immigrants Raises Big

Comun, a digital bank targeting immigrants in the United States, has secured $21.5 million in a Series A funding round, just nine months after its initial $4.5 million raise. The company is experiencing rapid growth, reporting a 50% increase in valuation.

Comun launched its first product in October 2022 using a banking-as-a-service (BaaS) platform.

The company transitioned to owning its infrastructure, launching a new program in November 2023 in partnership with Community Federal Savings Bank.

What Else We're Seeing: Carta Finds a Sale, Bolt Saga Continues

Public, a stock-trading startup, has acquired the brokerage accounts of Carta's secondary business. Carta, renowned for its cap table management software, made an unsuccessful foray into the secondary marketplace brokerage business.

Carta faced backlash in January when a startup customer publicly accused Carta of using the startup's private cap table data to approach its shareholders for a sale without the startup's consent.

Following this controversy, Carta announced its withdrawal from the secondaries business.

Public stated that Carta Capital Markets customers have the option to opt out of the acquisition.

Carta has clarified that it is not entirely exiting the secondary business.

The saga involving Bolt continues, with one of its potential backers, The London Fund, deleting its web page. Further details about the reason behind this action can be found in the linked article within the newsletter.

Additional news related to Bolt, specifically regarding a reported threat of legal action against Silverbear Capital, is also included in the newsletter.

High-Interest Headlines

The newsletter also includes a selection of high-interest headlines, providing a glimpse into other notable developments in the fintech landscape.

MoneyThumb has been acquired, with Ryan Campbell assuming the role of CEO. The newsletter discusses what to expect following this acquisition.

Synctera has partnered with Marqeta to introduce Fleet Cards, expanding their offerings in the payments sector.