Monese, a London-based fintech, has secured a loan from Pockit amid financial difficulties stemming from HSBC’s investment write-off.
- The recent loan agreement with Pockit marks a crucial step for Monese as it seeks fresh funding sources.
- HSBC had previously invested $35 million in Monese in September 2022, but wrote off the investment’s value recently.
- Discussions were held between Pockit and Monese regarding a potential acquisition of Monese’s consumer division.
- The loan details remain undisclosed, and neither Monese nor Pockit commented on the development.
Monese, a fintech company based in London, has recently taken a significant step to address its financial challenges by borrowing funds from the card company Pockit. This move came in the wake of a write-off by HSBC, one of its major shareholders, impacting Monese’s financial standing. The exact details of the loan arrangement, including its size and terms, have not been publicly disclosed.
The urgency for Monese to secure this loan is underscored by previous warnings about the company’s financial situation. Earlier this year, Monese had highlighted a ‘material uncertainty on the success of raising future fundraising’, which cast doubt on its ‘going concern’ status. Such financial instability drove the fintech to explore various avenues, including external funding from Pockit.
In the realm of potential strategic developments, it was reported that Pockit had entered into advanced talks to acquire Monese’s consumer division. This negotiation reflects on the financial measures Monese might be considering to stabilise its operations and ensure continuity amidst challenging circumstances.
Monese has been a magnet for high-profile investors, counting entities like PayPal and British Airways owner IAG among its shareholders. Despite this backing, the recent financial missteps have necessitated urgent corrective actions.
Neither Monese nor Pockit provided comments on the loan agreement, leaving the financial community to speculate on the potential implications of these developments for the fintech sector.
Monese’s recent financial manoeuvre highlights the precarious nature of funding in the fintech industry.
