Fintech Pockit’s Monese acquisition today, subject to regulatory approval, is set to bring multicurrency account services as well as around 3 million customers to the combined platform.
As part of the deal, Pockit and its shareholders led by private equity group Puma Growth Partners will invest up to £15 million in equity capital to fund the integration of the two businesses.
Pockit launched 2014, at first offering a prepaid card before offering a full digital UK current account in 2017.
Launched in 2015, Monese offers international transfer features via smartphones.
Pockit’s Monese acquisition will seek to provide services to around 3 million customers and generate up to £30 million in annualised run-rate revenue.
The merger will allow Pockit to add Monese’s multi-currency accounts to an existing product suite that includes digital accounts, salary advance and credit-building.
Pockit is also set to benefit from Monese’s regulatory position, which includes electronic money and consumer credit licenses.
In a statement regarding the takeover, Pockit said there would be no impact on customers of either Pockit or Monese upon completion of the deal.
The two separate services will continue to run independently until Pockit’s Monese acquisition has been completed.
Pockit founder and CEO Virraj Jatania will lead the combined business. Norris Koppel, founder and CEO of Monese, will remain involved after the deal is completed to help ensure a smooth transition.
On Pockit’s Monese acquisition Jatania said: “This is a transformational acquisition for Pockit. It immediately propels us to a size where we can support financial inclusion for a critical mass of people who would otherwise be locked out of mainstream finance.
“While nothing will change for our 3 million customers in the short term, over time this deal will result in new products and an enhanced in-app money management experience.
“We’re also delighted to be welcoming the talented Monese team that Norris has built to advance our shared mission of providing essential financial services in an accessible, transparent and affordable way.”
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
