US-based banking services provider Dave agreed yesterday to a reverse takeover with special purpose acquisition company VPC Impact Acquisition Holdings III representing exits for corporates Chernin Group, Kraft Group and Capital One.
The deal will value the combined company at about $4bn and it will take up the New York Stock Exchange listing secured by VPC Impact Acquisition Holdings III, which is sponsored by investment manager Victory Park Capital, in a $225m initial public offering in March this year.
Hedge fund manager Tiger Global Management is leading a $210m private investment in public equity placement supporting the deal, participating alongside Wellington Management and Corbin Capital Partners.
Dave has built an online platform with some 10 million customers who can access digital banking as well as financial advice, overdraft protection, credit building and a service which helps users find paid part-time work.
The company had disclosed $189m in equity and debt financing since it was founded in 2016, venture capital firm Norwest Venture Partners (NVP) having invested $50m in October 2019 at a $1bn valuation.
Victory Park Capital led a $100m credit facility for Dave four months earlier, following $13.3m in equity funding from unnamed investors in 2017 and $10m in debt financing the following year, according to regulatory filings.
The Chernin Group joined SV Angel and angel investors Mark Cuban, Jonathan Kraft, Skip Paul and Diplo to provide $3m in seed capital for the company in April 2017 before the JPMorgan Chase-backed Financial Solutions Lab supplied $250,000 two months later.
Financial services firm Capital One, diversified holding company The Kraft Group and VC firm Section 32 were also identified by Dave as existing backers this week, though the company has not revealed when they invested.
