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(Sharecast News) - HSBC-backed technology company Monese - which was in talks to raise funding at a valuation of over £1bn four years ago - is reportedly set to break itself up amid mounting losses.
According to Sky News, Monese, which has targeted customers who are underserved by mainstream banks, is working with advisers on plans to split itself into separate consumer-facing and corporate businesses.
City sources told Sky that Interpath Advisory had been appointed to work with Monese on the break-up, which they added could lead to a sale or further restructuring at a subsequent time.
Monese has about 2m customers in more than 30 countries and employs about 275 people.
Staff are understood to have been briefed on the plans earlier this month.
Led by Norris Koppel, Monese is said to have been attempting to raise additional capital during the last year, and had come under pressure from investors to consider breaking itself up.
Its business-to-business arm, called XYB, reportedly powers HSBC's retail banking app.
HSBC invested $35m in Monese in 2022 in exchange for a stake in the company.
A Monese told Sky on Friday: "The business has developed in two different directions: the original B2C business and now the new and fast-growing B2B PaaS (Platform as a Service) business.
"We are exploring the best organisational and capital structure for the company should be to maximise shareholder value."
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