Pockit to Acquire Monese

UK fintech Pockit, which provides financial services to low-income and underserved customers, has reached an agreement to acquire Monese, a struggling mobile banking firm. The terms of the deal, subject to approval by the Financial Conduct Authority (FCA), have not been disclosed. However, Pockit and its shareholders, led by Puma Growth Partners, are committing up to £15 million in equity capital to support the integration and future growth of the combined business.

This acquisition follows news that HSBC recently wrote off its stake in Monese, just two years after investing $35 million. Monese, founded in 2015 and based in London and Tallinn, initially focused on providing banking services to expats and immigrants who face difficulties accessing traditional bank accounts. However, the company reported a £30.5 million loss for 2022 and raised concerns about its ability to continue operations without securing additional funding. Although Monese managed to raise funds, both HSBC and another major investor, Sweden’s Kinnevik, have since written off their investments.

With the acquisition, Pockit aims to become the leading fintech serving financially underserved and lower-middle-income consumers across the UK and Europe, reaching around three million customers and generating nearly £30 million in annualized revenue. Pockit will gain access to Monese’s regulatory licenses and geographic presence, as well as its multi-currency account offerings.

Pockit CEO Virraj Jatania will lead the enlarged business, while Monese’s founder and CEO Norris Koppel will stay on temporarily to help facilitate the transition. Jatania described the acquisition as transformational, stating that it positions Pockit to support financial inclusion for a larger customer base. He also noted that while no immediate changes are expected for existing customers, the deal will eventually bring new products and an improved in-app money management experience.