US banking app Dave has entered into a partnership with acquisition firm VPC Impact Acquisition Holdings that will result in the former becoming a publicly-traded company.
According to Dave, once the acquisition is completed the start-up will be listed under the ticker symbol “DAVE” and will have an expected proforma, fully diluted equity value of around $4bn, assuming no redemptions. Through the acquisition, the company is also expected to see an extra $375m on its balance sheet.
Founded in 2017, Dave is a banking app designed to help US consumers avoid overdraft fees charged by traditional banks. The company is now a financial platform that supports over 10 million customers with financial insights, banking, building credit and finding side gigs.
To date, Dave estimates it has helped companies avoid nearly $1bn in overdraft fees through ExtraCash – its flagship feature – as well as earning over $200m in income through Side Hustle, which is its gig-economy job board.
Dave generated $122m in revenue during the financial year of 2020. In December of the same year, the firm launched Dave Banking, which is a spending account and debit card with no monthly fees that has already secured over 1.3 million members.
Dave CEO Jason Wilk said, “At Dave, we’re committed to improving the financial health of our members. We believe the legacy financial system has failed to deliver and today, more than 150 million people need our help to build financial stability.
“Dave is upending the banking industry with our suite of breakthrough financial products and making a meaningful impact on our customers’ lives. This transaction and continued support from our longstanding investors signify confidence in our strategy, vision and the significant growth opportunities ahead.”
Earlier this year, Dave received a $100m credit facility from Victory Park Capital. The capital injection was used to support the growth of its product development and the expansion of its service offering.
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