Monese, a technology company backed by HSBC, is set to announce its plans to break itself up this week as it faces mounting losses. The company’s founder and CEO, Norris Koppel, will take control of its consumer arm as a standalone entity, while its business-to-business arm, XYB, will be operated as a separate entity by a new leader, according to sources close to the company.
The decision to break up the company comes after pressure from investors and is expected to be finalized by Monese’s board on Monday evening, with an official announcement to be made on Tuesday. This news was first reported earlier this month.
Monese, which targets customers underserved by traditional banks, has over 2 million customers in more than 30 countries and currently employs around 275 people. The fintech company has received investments from various sources, including a $35 million investment from HSBC in 2022. Other investors include Investec and Augmentum, a London-listed fintech investor.
In a statement released earlier this month, a Monese spokesperson stated, “The business has developed in two different directions: the original B2C business and now the new and fast-growing B2B PaaS (Platform as a Service) business. We are exploring the best organizational and capital structure for the company to maximize shareholder value.”
According to Monese’s recent accounts, there is “material uncertainty over the success of raising future fundraising and therefore the going concern status of the company.” However, sources close to the company have stated that Monese has started 2024 on a strong footing, with robust performance in the previous year. They also mentioned that the company has seen continuous revenue growth and a decrease in losses from £30.5 million in 2022 to single-digit millions.
A Monese spokesperson and Interpath Advisory, which has been involved in the restructuring process, declined to comment.
