3 Fintech Startups That Are Set to Reach Unicorn Status

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3 Fintech Startups That Are Set to Reach Unicorn Status
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Becoming a unicorn. It’s the ultimate status symbol for a Fintech startup. However, it’s a challenging height to reach, and as of December 2020, there are only 115 Fintech Unicorns around the world. But will more Fintech startups soon start joining this list? In this article, we’ll discuss three Fintech startups that have the next best shot of reaching the converted unicorn status.

What Is a Unicorn Startup?

A unicorn refers to a privately held startup that has reached the valuation of $1 billion. Some of the more popular unicorns that you’ve probably heard of include Revolut, Robinhood and Stripe.

The reason behind the term ‘unicorn’ is that finding a $1 billion startup is as difficult as finding a mythical unicorn. Only an estimated 0.00006% of startups will ever become a billion-dollar company. Unicorn startups really do come once in a blue moon.

Which Startups Are Set to Join Next?

Acorns is a startup that specialises in micro-investing and robo-investing. Their service makes investing significantly easier and is a great option for those who have little in savings. With Acorns, users can invest their spare change, prepare for retirement, set up a checking account, and much more.

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Their platform now has over 7.7 million users and $2.3 billion of assets under management. This impressive growth has attracted $207 million in funding from major players, including Paypal and NBCUniversal Media. After their latest fundraising round back in January 2019, they now yield a valuation of $860 million.

Divvy helps businesses simplify their expense reporting. Users can submit expense reports, budget, manage team spending, and produce automated expense reports all within their platform. These integrated services are helping to solve some businesses biggest financial pain points.

Divvy is experiencing tremendous growth, with their client base increasing by over 300% in the past year, jumping from 700 companies to 3000. This has attracted the eyes of investors, and the company has now raised $257 million in venture capital. This significant investment has led to Forbes valuing the company at $800 million. 

Lastly, we have Tala. This company offers loans to underserved people around the world. Whether users are looking to pay school fees and bills or become more financially stable, Tala helps them achieve it by offering up to $500 loans via their simple mobile app.

The company has grown rapidly since being founded in 2011 with six offices around the world and over 600 employees. They’ve now also disbursed over $1B to more than 4 million customers across East Africa, the Philippines, Mexico, and India.

Investors have seen the value in this innovative startup and have poured in over £200 million to the company. According to TechCrunch, Tala is now valued at more than $750 million.

Who Will Reach Unicorn Status First?

Which one of the three startups will reach unicorn status first remains unclear. However, it’s only a matter of time before all the three achieve the winning unicorn status next to their name.

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