Fintech startups have seen a significant surge in valuations, with Riyadh-based Tabby becoming the most valuable fintech in the Middle East and North Africa (MENA) region after securing $160 million in a Series E round at a $3.3 billion valuation. This marks a doubling of its valuation in just 18 months, from $1.5 billion. Meanwhile, India's Zeta, a provider of banking software to banks and fintech startups, raised $50 million from a strategic investor at a $2 billion valuation, up from $1.15 billion in 2021.

In another significant development, Mercury is reportedly in talks to raise capital in a new round led by Sequoia at an over $3 billion valuation, which would double the company's value. While Mercury declined to comment on the matter, these deals suggest a promising start to 2025 for fintech startups.

Payments infrastructure giant Stripe is also making headlines, with reports emerging that it is in talks for another shareholder sale that could value the company at "at least" $85 billion, according to multiple reports and a source familiar with the matter. This would mark a significant increase in Stripe's valuation, further solidifying its position as a leading player in the fintech industry.

In other funding news, Lagos-based Raenest has raised $11 million in a funding round led by QED Investors to expand its reach across Africa, while Ghanian fintech Affinity Africa has raised $8 million in seed funding to expand its financial products further across the country. Comulate, which builds tools to help insurers manage billing and revenue operations, has closed a $20 million Series B round to expand its tech stack and scale operations.

In a separate development, Carta, a cap table management firm, has settled two lawsuits filed by women who worked at the firm and alleged sexual harassment and discrimination. This comes after a lawsuit filed by the company's former marketing VP Emily Kramer in 2020, which was settled in 2023.

Crypto exchange Coinbase is also making a comeback, working on its reentry to India more than a year after it officially ceased operations in the country. In an interview with TechCrunch's Equity Podcast, Sheel Mohnot, general partner of Better Tomorrow Ventures, discussed the resurgence of fintech, among other topics.

Other notable fintech news includes Fraud detection startup Sardine AI wrapping up a $70M Series C, Vouch acquiring StartSure Insurance Services and raising Series D funding, and Varo CEO Colin Walsh tapping Gavin Michael to succeed him. Additionally, Robinhood's Q4 crypto revenue soared 700% year-over-year.

These developments suggest a promising start to 2025 for the fintech industry, with significant valuation jumps, major funding rounds, and notable acquisitions. As the industry continues to evolve, it will be interesting to see how these developments shape the future of fintech.