US-based banking app Dave is set to go public via a special purpose acquisition (SPAC) deal at a valuation of around $4 billion.
SPACs create public listings through reverse mergers with a private firm, sometimes called a “backdoor listing”, while the acquiring company is sometimes called a “blank check company”.
Dave, founded in 2017, offers customers up to $100 in overdraft protection in exchange for a monthly fee, alongside tools which enable automated budgeting and the ability to build up their credit scores.
The deal will see the FinTech merge with a blank-check firm sponsored by investment firm Victory Park Capital.
Previous investors in Dave include Norwest, Section 32, Capital One, Mark Cuban, The Kraft Group, SV Angel, and The Chernin Group.
Dave claims Dave Banking, a spending account and debit card with no monthly fees launched in December 2019, has already accumulated more than 1.3 million members.
The FinTech will list on the New York Stock Exchange (NYSE) under the ticker symbol DAVE, when the deal closes later this year.
Statistics from SPAC Research have found that 330 SPACs have raised nearly $105 billion so in far 2021.
“At Dave, we’re committed to improving the financial health of our members,” said Jason Wilk, chief executive of Dave. “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.”
He added: “This transaction and continued support from our longstanding investors signify confidence in our strategy, vision and the significant growth opportunities ahead.”
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