FinTech Monese has been saved by Cardiff-based digital banking provider Pockit after HSBC became the latest investor to write off its investment in the struggling London firm.
The acquisition comes after Monese’s failure to raise new funds and pre-tax losses of £30.5 million in 2022, despite revenues climbing to £27.7m.
Founded in 2015 as the UK’s first app-based bank, Monese was once seen as a potential unicorn, with its valuation expected to surpass $1 billion. However, it lagged behind competitors such as Revolut, Monzo, and Starling Bank. HSBC’s $35m investment in 2021 as part of a strategic partnership was written off recently, leaving Monese in need of a rescue.
Pockit, which serves 900,000 customers who are “underserved” by traditional banks, has now acquired Monese, creating a combined customer base of around 3 million people and generating nearly £30m in annual revenue. Pockit will benefit from Monese’s regulatory infrastructure and product offerings, enabling it to accelerate new services like multi-currency accounts.
The deal, pending approval from the FCA, will involve an equity capital injection of up to £15m from Pockit’s shareholders, led by Puma Growth Partners, to fund the integration and future growth. Financial terms of the acquisition remain undisclosed.
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