Hsbc-backed app may sell half business in dash for cash

AN INTERNATIONAL payments app backed by HSBC is exploring a sale or splitting up its business as it seeks a fresh infusion of cash.

London-based financial technology company Monese has considered selling its consumer-focused app, which has about 2m customers, according to City sources.

Monese operates a payments app that provides international money transfers and current accounts, competing with Revolut or Wise. Selling the app would allow Monese to focus on its technology division, XYB, which is used by banks to build apps and services.

The start-up, founded in 2015, has raised more than £200m from investors, including HSBC, Paypal and British Airways. The taxpayer holds a small stake after Monese secured funding from then chancellor Rishi Sunak’s Future Fund during the pandemic.

Its latest accounts, for the year ending in 2022, showed a loss of £30.5m on revenues of £27.7m. A spokesman said the business was “approaching profitability in the near term”.

One of Monese’s biggest shareholders has written off the entire value of its investment. In its latest financial report, Kinnevik, a Swedish fund, said its 21pc stake in Monese was now worthless, despite having valued the entire business at £320m a little over a year ago.

Kinnevik said in its report: “While there is still significant value in the company, the nature of our participation in its future is uncertain.”

The write-off comes as valuations for financial technology companies tumble after soaring during the pandemic.

Last year, Monese launched its XYB division. The tools are reportedly being used by HSBC on its new money transfer app, Zing.

Monese said: “Monese starts 2024 in a positive position following strong performance in 2023.

“We have always explored ways of developing our business and generating shareholder returns with both existing and new investors, and we will continue to do so.”