Digital financial platform MoneyLion and special purpose acquisition company (SPAC) Fusion Acquisition Corp. have closed a deal that would take MoneyLion public with an estimated $2.9 billion equity value.
Dee Choubey, CEO and co-founder of MoneyLion, said in a Friday (Feb. 12) press release that the startup is aiming to “rewire a broken banking system” and move away from “a one-size-fits-all” mentality that typically exists in personal finance options.
Choubey said the “transformative technology” MoneyLion uses has the ability to give everyone a “private banking experience” using just one application.
“Our platform surrounds each customer with the financial tools, content, and actionable advice relevant to their unique situation. This model is generating high user growth, multiple product engagement, and low cost of acquisition,” Choubey said.
MoneyLion’s new tool, Financial Heartbeat, offers automated, personalized money management advice that aligns with members’ individual finance situations. The company said its goal with a public listing is to quickly advance its scalability and innovation capabilities.
“MoneyLion is at the perfect high-growth inflection point that makes accessing public markets a logical next step. This will be the first publicly traded all-in-one digital financial services platform, which in and of itself creates huge scarcity value for the Company,” said John James, founder and CEO of Fusion.
He added, “MoneyLion has purpose-built its technology and operates a holistic platform with multiple products and revenue streams with strong unit economics,” setting it apart from competitors.
“We believe in today’s market there are limited opportunities to invest in high-growth businesses built for profitability like MoneyLion. We look forward to partnering with the Company’s highly experienced team of technologists and financial product experts to accelerate growth post-merger,” he said.
In a June PYMNTS interview, Tim Hong, chief product officer for MoneyLion, said the pandemic has shown that financial services providers must target the advancement of digital offerings and tune into what customers actually need.