HSBC-backed UK fintech Divido enters administration
Divido, a London-based fintech backed by banking giants HSBC and ING, has been declared insolvent and has called in administrators.
Divido entered administration earlier this month
In a statement on the firm’s website, Divido writes: “On 5 July 2024, Josh Dwyer and Richard Heis were appointed as Joint Administrators of Divido Financial Services Limited,” adding that the “affairs, business and property of the company are being managed by the Joint Administrators”.
In an email to Divido’s creditors, Dwyer, a managing director at Interpath Advisory, explained that the fintech “has now ceased to trade”.
Dwyer continues: “It is not currently possible to forecast the outcome of the administration, but we will write to you setting out our proposals for achieving the purpose of the administration by 15 August 2024”.
Founded in 2014, Divido offers a white-label consumer lending solution built to enable banks, lenders and other FIs to introduce embedded retail finance services. At the time of entering administration, the company reportedly had a workforce of 45 employees.
In 2021, the fintech raised $30 million in a Series B round featuring participation from HSBC Venture Capital, ING, American Express Ventures, and more, which brought the firm’s total funding to $45 million.
According to Company Watch, the company had not yet turned a profit, with losses escalating from £343,673 in 2018 to £7.26 million in 2022.
In comments made to FinTech Futures, Divido founder and former CEO Christer Holloman, who left the firm in 2021, says: “I was saddened to learn about Divido entering administration. My thoughts are with the employees during this difficult time. I’m hopeful they can find new opportunities that utilise their valuable skills.”
FinTech Futures contacted Divido for comment but has not yet received a response.
