Monese has negotiated a debt arrangement with Pockit as it seeks new funding sources after HSBC devalued its investment in the fintech company.
- In September 2022, HSBC invested $35 million in Monese but has since devalued its stake to zero amid strategic changes and financial challenges faced by Monese.
- Monese reported a significant financial loss of £30.5 million in 2022, prompting concerns over its future funding and business stability.
- Pockit, traditionally focused on consumer banking services for low-income customers, provided the recent financial support to Monese.
- Pockit had previously considered acquiring Monese’s consumer division, highlighting the intricate financial and business dynamics between the two companies.
Monese has recently established a debt agreement with Pockit, a Cardiff-based fintech, as it pursues additional funding sources. This financial move follows a significant devaluation of Monese’s investment by HSBC, a major shareholder, which has marked a period of financial turbulence for the London fintech company.
HSBC had previously made a substantial investment of $35 million in Monese in September 2022, becoming one of its largest shareholders. However, recent strategic changes, including the development of its own money transfer application, Zing, have led HSBC to devalue its interest in Monese to zero.
Monese’s recent financial disclosures reveal a loss of £30.5 million for the year 2022, overshadowing its revenue of £27.7 million within the same timeframe. This financial trajectory has raised alarms about Monese’s ability to secure further funding, casting doubt on its operational viability as a going concern.
The role of Pockit, which primarily offers banking services to individuals with low credit scores, has shifted focus temporarily by providing a debt lifeline to Monese. This move is notable given Pockit’s core emphasis on serving low-income customers rather than business lending.
There have been discussions about Pockit acquiring Monese’s consumer division for a nominal fee, reflecting the financial challenges that Monese is currently facing and the evolving interests of Pockit in expanding its business capabilities.
Monese’s recent financial agreement with Pockit underscores the challenges and strategic shifts occurring within the fintech’s operational landscape.
