Launched in 2017, Dave is an app used to help Americans avoid
billions of dollars in overdraft fees charged by traditional
banks. It currently has 10 million customers.
Companies such as Dave are rushing to capitalize on a boom in
demand for online banking services due to the COVID-19 pandemic.
Financial services startup Chime has also held preliminary talks
with investment banks about launching a stock market flotation,
which could value it at more than $30 billion, Reuters reported
in March.
The deal with special-purpose acquisition company (SPAC), VPC
Impact Acquisition Holdings III Inc, includes a $210 million
investment led by Tiger Global Management, with additional
participation from Wellington Management and Corbin Capital
Partners.
Dave's other investors include Norwest, Section 32, Capital One,
The Kraft Group, SV Angel and The Chernin Group.
A SPAC is a blank-check firm that seeks to merge with a
privately owned entity, a deal type that has become very common
in the last year.
The merger, which comes after a lull in dealmaking due to weak
investor appetite and greater regulatory scrutiny, is expected
to close later this year.
Centerview Partners LLC served as the exclusive financial
advisor to Dave. Citigroup and Jefferies served as capital
markets advisors to VPCC and co-placement agents on the
investment. (https://bit.ly/3fUUhd8)
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amy
Caren Daniel)
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