UK fintech Pockit has agreed terms to acquire European fintech Monese to enhance its services to more than three million underserved British customers.
Backed by Pockit shareholders, led by Puma Growth Partners, the acquisition is subject to approval by the Financial Conduct Authority. Puma Growth Partners will inject upwards of £15m in capital to help fund the integration of Monese.
The combined group will serve up to three million customers and generate almost £30 million in annualised run-rate revenue. In addition to this significant expansion, Pockit will leverage Monese’s regulatory infrastructure (including electronic money and consumer credit licences).
Both companies will also benefit from each other’s customer bases and take advantage of product offerings and market presence across several European countries.
Virraj Jatania, CEO and Founder of Pockit, stated: “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 three 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.”
The acquisition will allow Pockit to accelerate the roll out of new services, such as Monese’s multi-currency accounts, on top of an existing product suite that includes digital accounts, salary advance and credit-building.
Pockit confirmed there will be no impact on customers of either Pockit or Monese upon completion of the deal, with the two separate services continuing to run independently until a “careful review and integration process has been completed”.
Following completion of the acquisition, Pockit founder and CEO Virraj Jatania will lead the enlarged business. Norris Koppel, Founder and CEO of Monese, will remain involved with the combined company post-completion to help ensure a smooth transition.
Koppel commented on the deal: “This new era with Pockit is a fantastic way to build on our success and to scale our offering to more customers, and comes at a time when we are approaching profitability.
“These two businesses have closely aligned customer bases and missions, and are highly complementary in terms of products and geographic footprint. We are looking forward to working with Virraj and the wider Pockit team on the next chapter.”