A Walmart-backed fintech is set to acquire two companies. It intends to build an all-in-one app. It aims to facilitate a platform where customers can manage money. The combination of three will call itself “ONE”.
ONE is the name of the firm Walmart Fintech start-up will acquire. The other fintech company is Even. Walmart is the USA’s largest private employer. And also one of the biggest grocers across the country. They aim to develop unique, affordable financial products. They made this as an announcement last year.
Walmart also announced its team-up with Ribbit Capital. It is an investment firm behind Robinhood. They launch independent fintech start-ups.
Goldman Sachs bankers will lead the joint venture. They hired two of them. Omer Ismail will lead ONE.
Walmart is a major stakeholder in the fintech start-up. It called the start-up Hazel. Also, the board includes most of the top executives of Walmart. The fintech includes CFO Brett Biggs and U.S. CEO John Furner.
The start-up will try to strike 1.6 million U.S employees and 100 million shoppers. It will also focus on the untapped customers. The untapped sections include Walmart’s shoppers. The start-up will capitalize millions of Americans who have no access to a bank account.
This venture will serve as a one-stop platform to spend, borrow and spend. It already features an app for its employees. The app helps with budgeting and emergency savings. Walmarts, PayPal, Mattress Firm, and Humana, are some of its customers.
ONE will offer debit cards and savings accounts to customers. The Walmart-backed start-up will also help people keep track of their money. It will serve as an assistant to the budget.
The acquisition will have 200+ employees. The combined business will account for more than $250 million on the balance sheet. It will include fuel growth, Walmart, Ribbit Capital. The start-up expects the closing of the transaction in the first half of 2022.