Mobile banking startup Monese has confirmed the break up of the business into separate consumer-facing and corporate concerns and the arrival of new funding.
The Monese brand will continue as the B2C consumer facing business for immigrants and expats, and XYB, the B2B Platform as a Service (PaaS) technology business borne out of Monese, will become an independent company.
The firm says that both companies received an undeclared amount of financing to put them on a stable footing and that a search has begun for a new CEO of XYB
The group last raised equity funding of £42.3m with the final round of its Series C funding in January 2022, bolstered by a $35 million strategic investment from HSBC in September 2022.
The splintering of the business comes after Monese in January booked a £30.5 million loss in accounts filed for 2022 and warned of its ability to continue as a going concern unless it could raise additional funds.
CEO Norris Koppel says: “This separation will unleash the growth and potential of Monese and XYB, and will see both businesses well-funded. I am excited to continue the strong collaboration between the two companies, whilst the separation ensures that both businesses will have the focus they need to thrive.”