Pockit, a UK-based FinTech focused on providing financial services to underserved consumers, has announced its acquisition of Monese, a pan-European FinTech with a similar customer base.
The deal is subject to Change in Control approval by the Financial Conduct Authority (FCA), according to FF News.
The acquisition aims to create a leading FinTech for low to middle-income consumers across the UK and Europe. Pockit and its shareholders are set to invest up to £15m in equity capital to support the integration and growth of the combined entity.
While further financial details of the deal remain undisclosed, this acquisition is poised to enhance Pockit’s service offerings significantly.
Pockit currently provides digital financial services for underserved consumers, including salary advances and credit-building products.
With this acquisition, Pockit will gain access to Monese’s regulatory infrastructure, including its electronic money and consumer credit licences, enabling it to expand its product range. Monese, which specialises in multi-currency accounts and other financial products, is known for its strong presence in Europe and complementary geographic footprint to Pockit.
The combined group will serve around 3 million customers and generate close to £30m in annualised run-rate revenue. In the long term, customers will benefit from new products and improved services while the two companies’ operations will remain independent during the integration phase.
Post-acquisition, Pockit founder and CEO Virraj Jatania will lead the enlarged business, with Monese’s CEO and founder Norris Koppel remaining involved in the transition. The leadership aims to ensure a seamless experience for customers as the companies merge their operations and product offerings.
Jatania, CEO and founder of Pockit, 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.”
Monese CEO and founder Norris Koppel added, “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.”
Rupert West, managing director of Puma Growth Partners, commented: “We were always great believers in Pockit’s mission to address financial exclusion and help low-income customers access high-quality digital financial infrastructure. This acquisition materially propels Pockit forwards along its planned growth strategy, adding significant scale. We’re excited to continue supporting Virraj as he builds Europe’s leading fintech for the financially underserved.”
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