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After several slow quarters, we鈥檙e seeing a pick up in funding to digital banking startups.

In the past three months, investors have plowed close to $1.2 billion into a geographically dispersed group of online banking providers, 附近上门 data shows. Three of the largest funding recipients 鈥� , and 鈥� announced new rounds this past week.

The single biggest haul went to One, a Sacramento, California-based startup offering online banking, debit cards and installment loans for purchases at , its majority stakeholder. Walmart and fintech investor led a $300 million round at a reported $2.5 billion valuation.

Tyme, which offers digital banking in South Africa and the Philippines, picked up the next-largest round: a $250 million Series D. Brazil鈥檚 led the financing, which sets a $1.5 billion valuation for the 5-year-old, Singapore-headquartered company.

Current, based in New York, its latest fundraise last week: a $200 million financing that brings investment to date to more than $600 million. The company says its revenue grew by聽 over 90% this year and that it is aiming for profitability in 2025.

Those three weren鈥檛 the only big fundraisers. Using 附近上门 , we put together a list of seven digital banking startups that disclosed large new financings in the past four months.

A time for exits

The funding spree comes amid anticipation of a fintech IPO comeback in 2025, with several big names prepping offerings.

One of the highest-profile companies is San Francisco-based , a pioneering challenger bank founded in 2012 that has raised $2.3 billion in known equity funding to date. The company reportedly for an IPO, with tapped to lead the offering.

An early entrant to the digital banking space, Chime markets itself as a 鈥渨allet friendly鈥� alternative to traditional banks, with no overdraft fees or minimum balance requirement. Today it reportedly has around users and makes its money primarily off the interchange fees merchants pay on card purchases.

Another splashy fintech debut expected in 2025 is Swedish buy now, pay later platform , which disclosed last month that it has filed confidentially for a U.S. IPO. If successful, a Klarna IPO could go a long way toward reinvigorating public investors鈥� appetites for new fintech offerings.

Other big names are also buzzing around as likely IPO candidates, including , a perennial favorite pick that has thus far remained private. Among neobanks, meanwhile, U.K.-based banking app is reportedly considering a U.S. offering. Additionally, Berlin-based digital bank recently its first quarterly profit and revenue estimates, which is the kind of move startups make when on the IPO track.

Public markets seem favorable to fintech lately

Public markets also seem more receptive to fintech newcomers lately. In particular, several of the most prominent companies that went public during the 2020-2021 IPO and SPAC boom and saw shares tank in the subsequent correction have since recovered nicely.

Installment lender 鈥檚 shares have increased several-fold since last year, with the company recently valued around $20 billion by market cap. Shares of consumer lender and financial services provider showed a similar surge, with the company recently valued around $17 billion.

and have also shot higher in recent months, buoyed by investor enthusiasm around crypto.

For the neobank space, bellwether , which trades as Nu Holdings, hit a high point in October. Shares have slid some since then, but the company still garners a hefty market cap of around $55 billion.

About time

Cycles turn, and for fintech and challenger banks, it looks like we鈥檙e entering a more bullish phase.

Of course, it鈥檚 not a given. This week鈥檚 market selloff following the 鈥檚 cautionary statements about future rate cuts, for instance, caused fintechs to erase some of their recent gains. We also haven鈥檛 seen a fintech unicorn hit U.S. public markets in recent quarters, so it鈥檚 unclear how receptive they will be.

Still, given that just a few years ago fintech was the reigning leader in startup funding, it seems not unreasonable for those who survived the crunch to enjoy some better times ahead.

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