The fintech industry showed signs of recovery in 2024 after a challenging 2023. Valuations for some of the biggest private fintechs increased, and publicly traded companies like Affirm, Coinbase, and Robinhood saw their stocks rise. However, worldwide funding for private fintechs continued to slide, decreasing to $34 billion last year from $42 billion in 2023 and a record $144 billion in 2021, according to CB Insights.
Despite the tough environment, entrepreneurs have found ways to thrive. Fintechs that serve other businesses did particularly well, claiming 31 of the 50 spots on this year’s list. This year marks the tenth anniversary of the Fintech 50, and only two companies in the payments business have made the cut every single year: Stripe and Plaid.
Among the first-timers on the 2025 list is Parafin, a San Francisco-based small business lender founded by three former Robinhood data scientists. It underwrites loans using data from marketplaces like Walmart, DoorDash, and Amazon, instead of relying on credit scores or personal guarantees from the owners. In 2024, Parafin reached 25,000 borrowers and its revenue more than doubled to $75 million.
Squire, a New York company led by former lawyer Songe LaRon, helps barbershops manage everything from scheduling appointments to processing payments. Last year it processed $740 million in transactions, up from $590 million in 2023. DailyPay, another first-timer, lets employees access their wages immediately after earning them instead of waiting for a paycheck.
Led by CEO Stacy Greiner, the company counts more than 1,000 businesses, including Hilton and Kroger, as customers, and last year expanded to serve over five million employees.
Fintech profitability increases amid challenges
In the fraud prevention space, DataVisor, co-founded by Yinglian Xie and Fang Yu, uses machine learning algorithms to flag fraudulent payments.
The company’s revenue grew 67% in 2024, reaching $50 million. True Link, which offers a debit card with customizable spending controls for individuals with dementia or special needs, also made the list. With 157,000 active cardholders, its revenue reached $30 million in 2024, marking its second consecutive year of profitability.
Profitability emerged as a key theme, with 13 out of the Fintech 50 winners reporting profits based on generally accepted accounting principles (GAAP), up from eight last year. These include companies like home equity lender Figure, life insurance startup Ethos, and payments company TabaPay. Some categories continued to face challenges.
Real estate fintechs had just two winners, while the insurance sector had four. The crypto sector, despite hurdles, claimed three spots, bolstered by the embrace of digital assets by political leadership in Washington. Lending businesses are making a comeback, with six winners in this category.
Notable names include Arc, Aven, Bilt, Figure, Imprint, and Parafin. Nova, a company founded in 2016 that allows immigrants to import their credit histories from their home countries, made a surprising return to the list after falling off for four years. When COVID-19 hit and immigration stopped, demand for Nova’s tech vanished.
However, the company pivoted to cash flow underwriting, an emerging technique assessing borrower risk based on bank account inflows and outflows, making its products the fastest-growing line of business.
Photo by; Brooke Cagle on Unsplash
