馃 Square to Acquire Australia-Based Afterpay for $29 Billion

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Welcome to Roy Overload, the business, tech and finance news letter. I'm Scott declared. This is what is making news today. Squares acquiring the Australia based start up after pay for twenty nine billion dollars, at a five hundred million dollar valuation. The Africa Focus Challenger Bank Kuda raised fifty five million dollars. HSBC reports pretax profits of ten point eight billion dollars in the first half of two thousand and twenty one. And, amid growing bitcoin adoption, paypal is assembling a cryptocurrency team in Ireland. Let's jump right into it. So first story, square is acquiring the Australia based start up after pay. So what is after pay? Well, first let's back it up. What is square? So Square, if you don't know, is one of the major names in global financial and digital payments. They're acquiring after pay for an all stock deal worth twenty nine billion dollars. So Square is run by Jack Dorsey. It's famously known for its involvement in Crypto and Bitcoin, amongst other things. They also acquired a majority stake and title earlier this year. The deal is expected to close by the end of q one, two thousand and twenty two. Once a deal is closed, after pays, directors will join Squares...

Board of directors. After payoffers a by now pay later service which allows users to pay for their purchases. Thinking about it like financing, but for everyday stuff and installments without any interest. It's already a big name in the industry with over sixteen million users and almost a hundred thousand merchants on its platform. Commenting on the acquisition, Jack Dorsey, squares cofounder and CEO, said, where and after pay, have a shared purpose. Build our business to make the financial system more fair, equitable, accessible and inclusive. Aft and after pay has built a trusted brand aligned with these purposes. Second story out of five hundred five hundred million dollar valuation, the Africa Focused Challenger Bank Kuda just raised fifty five million dollars. So they're offering cheaper banking services. They're leveraging an API based infrastructure. It is a Nigerian start up and they're trying to expand across Africa. So the company aims to bring comparatively cheaper, personalized mobile first banking services to, quote unquote, every African on the planet. To fuel its rapid expansion, it is based in London, although they're targeting and...

...trying to grow in Africa. The London based Kuda raised fifty five million putting it at a valuation of five hundred million dollars. So not only is COUDA focused on expanding services in Nigeria, they are also planning to expand to other African markets after the sccessful funding around. In terms of users, Kuda had a six hundred and fifty thousand users when they raised their first twenty five million dollar series a funding round. Currently KUDA has one point four million users, so they've more than doubled since March of just this year. So they're growing rapidly. HSBC just reported pretax profits of ten point eight billion dollars in the first half of two thousand and twenty one. So a global economy is coming back. HSBC beats their earnings expectations in the first half of two thousand and twenty one, reporting over ten billion and pretax profits, resulting in a three percent jump in HSBC share prices in Hong Kong. The jump and share prices can be attributed, of course, to posting better than expected profitability. They they estimated that they were going to expect roughly nine point four five billion and pretax profits. So pretax profits were fifteen percent higher than what they were actually...

...forecasting. Noel Quinn, who is a group chief executive at HSBC group, gave credit for the bank's higher than expected performance to a bright based on the brighter, you know, a brighter economic outlook. COVID is starting to subside. He said that better economic conditions enabled the bank to release provisions set aside to cover the potential losses from loans. Obviously a major turning point and helped the bank immensely. And lastly, paypal news. So, amid growing bitcoin adoption, paypal is actually assembling a cryptocurrency team in Ireland. So paypal, they're hiring several cryptocurrency related positions. It obviously is showing paypal strong ambition to establish itself as one of the major players in the growing cryptospace. So there was a Sunday report last Sunday from Irish independent, it's a newspaper in Ireland. PAYPAL is looking to fill cryptocurrency related rules in various domains, including business development and he money laundering and compliance. The roles are for paypals offices in Dublin and Dunda. PAYPALS for a into crypto began in October of two thousand and twenty one. It allows his customers to purchase bitcoin, the theory Um...

Bitcoin, cash lightcoin, and these were United States customers, so highly regulated it environment. The payment industry leader would one set further when it began allowing its US based customers to pay for products and services in Crypto. That was since March two thousand and twenty one, and then in May twenty twelve. That was in March two thousand and twenty one. Excuse me. And then in May two thousand and twenty one, paypal announced that their crypto users now have control of their own keys and wallets and they can withdraw their crypto from paypal to third party wallets. This has been six months of nonstop crypto good news for anybody that is interested or involved in the in the CRYPTO or bitcoin space. This can only be considered as wildly positive when you have a company like paypal that is taking such monumental move sports crypto adoption. Other things around the web, policy bizarre goes public. So one of the leading online insurance aggregators in India, Policy Bizarres, finally filed for an IPO. They're trying to raise eight hundred and nine million dollars by going public. Over the past two months, th three Indian startups have explored public markets. Stories Capital Policy...

Bizarre being the fourth high profile start up to opt for an IPO just in the past a few months. And then there is a new facebook tool for small businesses. So it's called the campaign idea generator. They just released it for small businesses. It's used to generate campaign ideas, insights, data and resources for small businesses. So we'll have to see what that looks like when it's finally, finally released. That's it for today. I hope you enjoyed if you found value, share it with anybody you know and they can go subscribe at Newsletter Dot Roy overloadcom. Have a great day.

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