HSBC has entirely written off its stake in Monese just two years after investing $35 million in the mobile banking fintech. According to filings, the bank “completely impaired” its minority holding in Monese earlier this year, eliminating the remaining value of $5.86 million.
Launched in 2015, Monese, based in London and Tallinn, initially focused on providing services to expats and immigrants who often face challenges in obtaining traditional bank accounts. In 2022, the company, which had raised nearly $200 million in funding, received $35 million from HSBC to facilitate its entry into the banking-as-a-service (BaaS) sector, leveraging this technology within a retail app.
However, early this year, Monese reported a £30.5 million loss for 2022 in its financial filings, raising concerns about its viability as a going concern unless additional funds were secured. The company did manage to secure funding shortly thereafter and subsequently split its operations into separate consumer-facing and corporate entities.
Despite these efforts, another significant investor, Sweden’s Kinnevik, also wrote off its investment in Monese this year, reflecting uncertainties regarding the company’s future.