Divvy Homes, a rent-to-own startup, has been acquired by Brookfield Properties for a total consideration of approximately $1 billion. While the sale may seem like a decent outcome, especially considering the struggles faced by many proptech companies in recent years, the reality is that most of the $1 billion will be used to pay off debts and transaction costs, leaving common shareholders with nothing.

According to a letter to stakeholders viewed by TechCrunch, CEO and co-founder Adena Hefets stated that "common shareholders nor holders of the Series FF preferred stock" would not receive any consideration. This outcome is a far cry from the company's valuation of over $2 billion in 2021. The significant decline can be attributed to various factors, including the surge in interest rates in 2022 and allegations of poor property maintenance and high rents.

Despite the challenges faced by Divvy Homes, other proptech companies are still securing funding. Foyer, a platform that helps consumers save for down payments, has announced a $6.2 million seed round led by Alpaca VC and Hometeam Ventures. Additionally, Indian fintech Jar has achieved cash-flow positivity, growing by more than 10 times last year, according to an investor note.

In other fintech news, Ramp has launched a new treasury product that allows customers to earn more on operating cash. CEO and co-founder Eric Glyman acknowledged that the product encroaches on digital bank territory. Rollfi, a startup that pivoted from crypto to payroll, has been acquired by Priority Tech Ventures for an undisclosed amount. Vertice, a London-based AI-powered SaaS spend platform, has raised $50 million at a reported $500 million valuation.

Visa has invested over $10 million in African fintech Moniepoint, which announced a $110 million investment last October. Method, a platform that powers debt and debt-repayment features in fintech applications, has raised a $41.5 million Series B round led by Emergence Capital.

In related news, fintech giant Stripe is laying off 300 people, but still plans to hire in 2025. Indonesia's antitrust agency KPPU has fined Google $12.6 million for an antitrust violation related to its payment system services for the Google Play Store. There is an interesting connection between Mistral, a French AI startup with a $6 billion valuation, and Alan, a health insurance unicorn.

The fintech industry is expected to continue experiencing challenges in 2025, with more startups shutting down. According to multiple sources, more startups shut down in 2024 than the previous year, and this trend is likely to continue. Read more about the data from Carta and AngelList in our deep dive.

Other notable headlines include Deel denying charges of enabling money laundering, HSBC shutting down its payments app Zing a year after launch, and Andreessen Horowitz closing its UK office to pivot back to the US crypto market. Clutch has secured $65 million in Series B funding to propel credit unions into the fintech era.