Welcome to TechCrunch Fintech (previously The Interchange)! On this version, I’m going to take a look at Brex’s newest spherical of layoffs, the state of fintech investing in 2023 and extra! I could also be taking a while off in coming weeks however by no means concern, TechCrunch Fintech isn’t going away. We’ll be again quickly!

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The large story

What goes up should come down. For spend administration startup Brex, this was the case for its worker headcount. Whereas rates of interest had been low, the corporate noticed a bump in enterprise and VC cash was simpler to return by. Its headcount had swelled to about 1,300 earlier than it laid off employees in October of 2022. As issues have come right down to earth, Brex is making an attempt a reset, asserting this week it lower 282 staff, or practically 20% of its employees, in a restructuring. The transfer got here after experiences the corporate burned $17 million in money every month through the fourth quarter and that it’s making an attempt to protect runway.

Evaluation of the week

Fintech, oh, fintech. Final 12 months wasn’t straightforward on you. Fintech traders injected $34.6 billion in startups throughout 2,055 offers in 2023, a –43.8% and –32.4% YoY drop, respectively, based on PitchBook data. Valuations additionally largely dropped, with the median of $19.4 million, down –13% from 2022’s median. Exits additionally took a dive, with simply $5.9 billion in exit worth generated throughout 185 offers in 2023, a lower of –76.1% and –22.3% YoY, respectively. However This autumn was one. In accordance with CB Insights, fintech noticed eight new unicorns through the interval and fairness funding improve by double-digit percentages.

{Dollars} and cents

Bilt Rewards, whose platform goals to permit customers to earn rewards on lease and every day neighborhood spend, introduced final week that it raised $200 million at a $3.1 billion valuation. Normal Catalyst led the financing, which greater than doubled the New York–primarily based firm’s valuation in comparison with its $150 million October 2022 raise. The elevate and valuation leap are spectacular in an surroundings had been mega-rounds (offers value over $100 million) are few and much between. CB Insights’ State of Venture Report 2023 discovered that whereas mega-rounds “were a hallmark of 2021, with 350+ occurring each quarter . . . in Q4’23, that figure fell to just 78 — the lowest level since 2017.”

What else we’re writing

Swedish fintech firm Klarna introduced its first subscription plan, “Klarna Plus,” for $7.99 per thirty days, that includes advantages like no added service charges when utilizing Klarna’s One Time Card, double rewards factors and entry to unique reductions with standard manufacturers.

A new list compiled by GGV US highlights 50 fintech startups enterprise capitalists assume are scorching stuff. We additionally spoke to GGV managing partner Hans Tung about what he’s seeing within the sector right this moment.

PayPal will start piloting a few new upcoming updates to its service, a few of which can leverage AI-driven personalization. The corporate is introducing a brand new “CashPass” cash-back providing referred to as “Smart Receipts,” with customized suggestions, amongst different issues.