Jeffrey Katzenberg backs the $10M Seed spherical for HUBUC’s embedded finance API – TechCrunch


I lately wrote in regards to the so-called “Embedded finance” pattern, citing the instance of Intergiro’s recent fund-raising within the area. There’s now one more instance of this pattern within the form of HUBUC.

Billing itself as “AWS for monetary providers” the startup — which emerged from Barcelona, Catalonia, Spain — has now raised a $10m Seed funding spherical co-led by WndrCo and Runa Capital.  

WndrCo is a major win for the corporate, for the reason that deal brings WndrCo’s Managing Companion and former co-founder and CEO of Dreamworks Animations, Jeffrey Katzenberg to HUBUC’s cap desk. This can be a highly effective ally to have.

However the checklist of influential traders doesn’t cease there. Y Combinator and Village World, backed by Jeff Bezos, Kenneth I. Chenault, Abigail Johnson, and Invoice Gates, additionally participated alongside numerous angel traders (listed beneath).

Based in 2021 by a pair of fintech entrepreneurs (Hasan Nawaz, CEO, and Ignacio Javierre, COO) HUBUC says it does the heavy lifting of embedding monetary providers into enterprise choices by way of an API with no-code options. This implies financial institution accounts, funds, digital and bodily playing cards in addition to real-time FX charges and digital wallets could be supplied HUBUC, becaue is sits as a layer between the monetary companions it really works with, and the corporate’s product. Meaning it manages the contracts, regulatory necessities, AML, different integrations and threat and so on.

In a press release, Nawaz mentioned: “Embedded finance is not the unique privilege of huge expertise companies. Our imaginative and prescient is to develop into the platform that permits any firm to embed monetary providers inside their merchandise. And we’re doing that by simplifying a massively complicated course of and wrapping all the pieces into one contract and one API.” He says they checked out numerous fintech verticals in 2017 comparable to however determined to go for an across-the-board API method.

HUBUC says it now covers 58 territories, working with merchandise comparable to journey reserving funds, advertising and marketing and media spend, and worker advantages. Prospects embrace Mastercard, Wagestream, PayFlow, OkTicket, and Declarando.

In fact, they aren’t the one participant. These embrace FIS, Temenos, Adyen, and Wex. Some analysts predict that, by 2025, the funds section income of embedded fintech may attain $141bn. 

Katzenberg, Walt Disney Studios’ former chairman, and WndrCo co-founder mentioned: “Embedded finance goes to disrupt banking in each single vertical market, from retail, mobility, to logistics and insurance coverage. However to get there requires vital funding – and subsequently threat – to develop and deploy. We are able to see the massive worth HUBUC presents to its clients by delivering a full suite of providers.”

Andre Bliznyuk, Common Companion at Runa Capital added: “We see fintech infrastructure as some of the promising themes for the following 10 years, because the demand for launching monetary merchandise is quickly accelerating.”

Angels within the funding spherical included ´Sujay Jaswa (Dropbox), John Lilly (ex CEO Mozilla), Immad Akhund (CEO Mercury), Lars Fjeldsoe-Nielsen (ex VP Uber), Bo Jiang (CEO Lithic), John Bautista (Companion Orrick), and Anthony Saleh (angel investor in Coinbase and Robinhood).

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