UK-based fintech company Pockit, which focuses on providing financial services to low-income and underserved communities, has agreed to acquire struggling mobile banking firm Monese. The acquisition deal, which is still subject to approval by the Financial Conduct Authority (FCA), will be funded with up to £15 million in equity capital from Pockit and its shareholders, led by Puma Growth Partners. This strategic move is set to position Pockit as a leading player in financial inclusion across the UK and Europe, serving around three million customers and generating nearly £30 million in annualised run-rate revenue.
Monese’s Challenges and the Strategic Acquisition
Founded in 2015, Monese originally aimed to provide accessible financial services to expats and immigrants, a segment that often faces difficulties in opening traditional bank accounts. While Monese initially experienced growth, it faced financial headwinds in recent years. In 2022, Monese reported a significant £30.5 million loss and expressed concerns over its ability to continue operating unless it could secure additional funding.
Although Monese managed to raise new funds shortly after these challenges were disclosed, its major backers, including HSBC and Sweden’s Kinnevik, decided to write off their investments. HSBC, which had invested $35 million just two years prior, has now exited its position in the firm. The acquisition by Pockit marks a turning point for Monese and offers a lifeline to its business while providing Pockit with valuable assets and infrastructure.
What the Deal Means for Pockit
By acquiring Monese, Pockit will inherit a robust regulatory framework, including Monese’s electronic money and consumer credit licenses, as well as its established geographic footprint and suite of multi-currency products. This will enable Pockit to accelerate its growth and expand its offering beyond its existing customer base in the UK. Monese’s regulatory infrastructure is expected to complement Pockit’s mission of supporting financial inclusion for customers who often face barriers to accessing traditional banking services.
“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,” said Pockit CEO Virraj Jatania, who will lead the newly combined business.
What Lies Ahead for Pockit and Monese Customers
While Pockit’s existing three million customers won’t see immediate changes to their services, the acquisition is set to pave the way for an expanded product portfolio and improved in-app financial management tools over time. The deal is not just about scale but also about enhancing the customer experience and broadening the product suite available to underserved segments of the market.
Monese’s CEO and founder, Norris Koppel, will remain involved during the initial transition period to ensure a smooth integration of the two companies. He commented: “Monese and Pockit share a vision of making everyday banking accessible for everyone. I look forward to seeing how the combined entity will further drive financial inclusion across the UK and Europe.”
A New Chapter in Fintech for the Underserved
This acquisition positions Pockit as a key player in the mission to provide financial services to those who have been left behind by traditional banking systems. With Monese’s technology, products, and infrastructure, Pockit is better equipped to meet the diverse needs of low-income and lower-middle-income consumers across Europe.
The focus now will be on seamless integration and delivering on the promise of improved financial inclusion. For Pockit, this is not just a growth opportunity but a chance to redefine how fintech can empower millions of people who have historically struggled to access mainstream financial services.