Acquisition: Walmart’s Fintech Is Acquiring Two Firms, One and Even
Walmart’s financial technology start-up announced Wednesday that it is purchasing two more companies as part of its plan to create an all-in-one app for consumers to manage their money.
The combined company will be known as ONE, after one of the fintech startups that the fintech startup is acquiring. It is also buying Even, another fintech firm. The financial details were kept under wraps.
Walmart, the country’s largest private employer, and grocer revealed last year that it was working on developing distinctive, low-cost financial solutions for its millions of customers and employees. It said that it was partnering with Ribbit Capital, one of Robinhood’s investment firms, to build an independent fintech start-up.
Two Goldman Sachs bankers were appointed to help lead the initiative, including Omer Ismail, the head of Goldman’s consumer bank. According to a press announcement issued on Wednesday.
Walmart owns the majority of the company, which was previously known as Hazel, and its board of directors includes Walmart’s chief financial officer, Brett Biggs, and Walmart U.S. CEO John Furner.
The startup intends to make use of Walmart’s massive breach, which includes 1.6 million U.S. employees and over 100 million monthly shoppers. It’s also pointing to an untapped client base of millions of Americans who don’t have a bank account, can’t get credit, and are struggling to save money—many of whom currently buy at Walmart stores.
The acquisitions will aid the startup’s development of an app that will serve as a one-stop-shop for consumers to spend, save, and borrow money. It even offers an app that employers may provide to their employees to assist with budgeting and emergency savings. Walmart, PayPal, Humana, and Mattress Firm are among the company’s clients.
The Walmart-backed start-up is also purchasing ONE, a company that offers debit cards, bank and savings accounts, as well as an app that helps individuals track their money and budget.
According to Walmart and Ribbit Capital, the combined organization will have more than 200 workers and more than $250 million in cash on the balance sheet to fund growth. The transactions are expected to close in the first half of 2022.