HSBC reportedly writes off remaining $5.8m stake in UK fintech Monese
HSBC Holdings, the banking group’s investment arm, is reportedly writing off its stake in banking services provider Monese, as pressure intensifies on the UK-based fintech.
HSBC has written off its remaining 5.4% share of Monese
The banking giant acquired a minority interest in Monese for £35 million in 2022, as part of a strategic partnership to enhance its banking-as-a-service (BaaS) platform, later integrating the firm’s solution into its retail banking app.
However, a report by City AM indicates that HSBC has now “completely impaired” its remaining $5.86 million stake in Monese, citing recent filings.
This decision, which a spokesperson for HSBC declined to comment on, comes as Monese seeks fresh funding for 2024 after reporting a £30.5 million loss in 2022.
In February, Kinnevik, which led Monese’s $60 million Series B in 2018 and held a 21% stake in the company, decided to write off its entire investment.
The Swedish investment group stated at the time that it aims to make “large write-downs or write-offs” in portfolio companies where its “conviction has come down”.
When Kinnevik announced its divestment, a Monese spokesperson gave a more positive outlook to FinTech Futures, saying that the company was entering 2024 “in a positive position” following a strong performance in 2023, with losses reducing to “low single-digit millions”.
For HSBC, this move continues its recent trend of shedding assets, selling its French retail banking arm to Crédit Commercial de France in January, its Argentine operations to Grupo Financiero Galicia in April, and last month agreeing to sell its German private banking unit to BNP Paribas.
