The Fintech Radar Adyen - Cautious into Investor Day-104833493

M UpdateThe Fintech Radar | GlobalAdyen - Cautious into Investor DayMorgan Stanley & Co. International plc+Alastair P NolanEquity Analyst Alastair.Nolan@morganstanley.com +44 20 7425-4620 Kerry ShawResearch Associate Kerry.Shaw@morganstanley.com +44 20 7677-4807 Giulia Aurora Miotto, CFAEquity Analyst Giulia.Aurora.Miotto@morganstanley.com +44 20 7425-5344 We look at Zilch's new investment from eBay ventures, Monzo seeking to raise >£300m, Atom and Tabby fundraises, our outlook for Adyen into Investor Day and read-across from Paypal, Remitly 3Q read-across for Wise, SNB launching wholesale CBDC pilot and more ... M&A / Fundraises:#1 Zilch receives backing from eBay Ventures at $2bn valuation. This week (31st Oct) a report from the Telegraph revealed that London-based BNPL firm Zilch has landed an investment from eBay Ventures, although the company has not confirmed the news as yet. This would imply that Zilch's valuation is unchanged from the one it received at its last $50m fundraise in Jun-22 . Back in August, Zilch's CEO Philip Belamant said that he had spoken to more than 15 banks in preparation for a potential IPO, but that the firm is yet to decide between a float in the UK or one in the US. Zilch expects to turn a profit in the next few months, although still reported a pre-tax loss of £72.1m in the 12 months to Mar-23. We think potential new regulation around BNPL services in the UK on the back of the sector's rapid growth (see press release from the FCA on new contract changes this week for unregulated BNPL firms as it finds use of BNPL has significantly increased) remains a focus for investors, although we note Zilch is already fully regulated by the FCA. #2 Monzo looks to raise >£300m via stake sale as Lunar CEO denies interest in potential merger. This week (30th Oct) Sky News reported that Monzo is in talks to raise >£300m via a stake sale that would value it at >£3.5bn. According to sources quoted in the article, the new capital would be used to accelerate Monzo's growth. The article also mentions that insiders are viewing the new fundraise as the final round pre-IPO. The news comes alongside an interview that Tech.EU published last week (27th Oct) with the CEO of rival challenger bank Lunar during which he denied any intention to potentially merge with Monzo. Details of the stake sale are expected to be finalised by the end of the year. Monzo has not commented on the report. #3 General Atlantic invests $200m in Brazilian fintech QI Tech. This week (31st Oct) General Atlantic announced the completion of the Series B funding round, which included existing investor Across Capital doubling its initial investment in QI Tech. According to the press release, the capital will go towards expanding QI Tech's product position and for potential strategic M&A opportunities. QI Tech was founded in 2018 and is aiming to decentralize credit away from major banks by using APIs to enable any business to offer financial products to