Pockit has acquired Monese, ensuring the financial stability of Monese amid its fundraising challenges.
- Monese had previously faced significant uncertainty regarding its ability to secure future funding.
- The acquisition includes a debt agreement and a potential £15 million equity injection to aid integration.
- The merger aims to support financial inclusion, benefiting those excluded from traditional finance.
- The independent operations of both entities will continue pending further review and integration.
Pockit’s acquisition of Monese comes at a crucial time for Monese, which has been grappling with questions surrounding its capacity to raise future funds. This acquisition ensures Monese’s long-term viability and stability, positioning it strategically in the fintech sector.
With Monese previously highlighting concerns about “material uncertainty” in future fundraising efforts, this acquisition offers a reprieve from financial instability. The deal not only addresses worries about Monese’s status as a going concern but also consolidates Pockit’s presence in the market.
The acquisition includes a debt agreement established in September, whereby Pockit provided financial support to Monese, along with an offer of up to £15 million in equity capital. This strategic funding aims to streamline the integration and drive future growth.
Virraj Jatania, the CEO and founder of Pockit, expressed that this acquisition propels the company to a size capable of fostering financial inclusion for those traditionally left out of the mainstream financial system. This strategic move aligns with Pockit’s mission to enhance access to financial services.
While Monese plans to continue its individual operations until further integration, its major shareholders, including HSBC, have seen shifts. Notably, HSBC’s strategic pivot involved developing its own financial technology, Zing, leading to a write-off of its investment in Monese. Despite these changes, Monese reported a decrease in losses to single-digit millions for 2023.
The acquisition of Monese by Pockit represents a strategic step towards financial stability and inclusivity, safeguarding Monese’s future.
