FinTech: Challenger Bank Dave To Go Public Via $4 Billion SPAC Merger

June 7, 2021 | FinTech, News

Mark Cuban-backed Dave will go public by merging with blank check company VPC Impact Acquisition Holdings III Inc.

Challenger bank Dave, which is backed by billionaire Mark Cuban and other investors such as Norwest, Section 32, Capital One, The Kraft Group, SV Angel, and The Chernin Group, said today it was going public by merging with VPC Impact Acquisition Holdings III, Inc. (NYSE: VPCC), a so-called Special Purpose Acquisition Company or SPAC. (Reuters)

A $4 billion merger

VPC Impact Acquisition Holdings III, Inc., the SPAC, or blank-check company, is sponsored by Victory Park Capital (VPC), a global investment firm headquartered in Chicago which has a track record of executing debt and equity financing transactions with some of the largest global fintech companies.

VPC has also been an investor in Dave and recently provided a $100 million credit facility to the company in January 2021.

The proposed merger would value Dave at $4 billion. It includes a $210 million concurrent private placement (PIPE) led by Tiger Global Management. Other participants in the PIPE include Wellington Management and Corbin Capital Partners.


Since its launch in 2017, the Dave banking app has helped Americans avoid billions of dollars in overdraft fees charged by traditional banks. It is now a financial platform helping 10 million customers with banking, financial insights, overdraft protection, and building credit.

Uniquely, it also helps its customers find side gigs.

Dave estimates that it has helped customers avoid nearly $1 billion in overdraft fees through its flagship feature, ExtraCash, and earn over $200 million in income through its gig-economy job board, Side Hustle.

In December 2020, the company launched Dave Banking, a spending account, and debit card with no monthly fees. The product already boasts more than 1.3 million members.

“We believe the legacy financial system has failed to deliver and today, more than 150 million people need our help to build financial stability,” said Jason Wilk, CEO of Dave. “Dave is upending the banking industry with our suite of breakthrough financial products and making a meaningful impact on our customers’ lives.”

“This transaction and continued support from our longstanding investors signify confidence in our strategy, vision, and the significant growth opportunities ahead.”

Related Story:  Paytm, India’s Leading Digital Payments Provider, Planning $3B IPO

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…
Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…
Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…超·世界.png
Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…