- Internal Restructuring:
- Monese, a UK-based fintech and banking services provider, is undergoing internal restructuring, with plans to split its business into two separate entities.
- The restructuring will result in its consumer-facing money app and business-facing Platform-as-a-Service (PaaS) unit XYB operating as two distinct companies.
- XYB Platform:
- Monese launched the XYB platform last year, focusing on providing coreless banking solutions and a partner ecosystem to extend services to banks.
- The XYB solution was integrated into HSBC’s international payments app Zing, which launched in January this year.
- Reasons for Restructuring:
- Monese cites the development of its business in two different directions – the original B2C business and the fast-growing B2B PaaS business – as the rationale behind the restructuring.
- Financial Concerns:
- Monese reported a significant loss of $37.6 million in 2022, largely attributed to rising direct costs.
- The fintech expressed reliance on access to sufficient funding for its operations and growth plans, indicating potential financial instability.
- Investment Challenges:
- Despite previous investments totaling $208 million, including a $35 million injection from HSBC, Monese faces challenges in securing additional funding.
- Swedish investment group Kinnevik, which owned a 21% stake in Monese, wrote off its investment in the company, signaling further difficulties in attracting investment.
- Future Outlook:
- With funding challenges and divergent business directions, Monese’s restructuring aims to address these issues and navigate its operations in a sustainable manner.
- The exact timeline for completing the restructuring has not been disclosed, but it represents a strategic move to align with the company’s evolving business landscape.
Monese to split business in two amid mounting financial woes
Popular Categories
Previous article![]( "Nium names Alexandra Johnson as first chief payments officer")
Next article![]( "Women in AI: Anna Korhonen studies the intersection between linguistics and AI")
