Pussy with Illimity cuddles Hype by Fabrick (Sella group)
All the details on the Illimity-Sella group agreement for the loss-making fintech Hype which also provides for the entry of Fabrick (Sella group) into the Illimity shareholder base
Illimity, the bank founded and led by Corrado Passera , and the Sella group (through the subsidiary Fabrick) set up a joint venture to help Hype, a company that offers digital solutions for money management.
The fintech marriage aims, the companies write in a note , to "increase the ambitions of the project and the simultaneous acceleration of the growth of Hype, which already serves 1.3 million customers".
All the details.
WHAT IS HYPE
Hype is a company of the Sella group that offers digital solutions for daily money management. Through an account, a card and an app it is possible to take advantage of more traditional banking services, such as transfers, incoming and outgoing, recurring debits and recurring payments, and smart and innovative services such as insurance and expense control and management.
Not only. Hype is also a payment tool, thanks to the integration with ApplePay and GooglePay.
THE NUMBERS OF HYPE
The company had over 1.3 million customers as of September 2020. It closed the first half with a loss of 8 million euros. The industrial plan foresees that by 2023 the company will be able to record a profit of 3.5 million euros, with a growth forecast of approximately 17 million euros in 2025.
THE AGREEMENT
Illimity, the bank founded by Corrado Passera, will also contribute to the change of direction of Hype. According to the agreements, Illimity will subscribe a reserved capital increase of Hype of 30 million and will confer some of its assets into the Jv with Fabrick.
THE NEW STRUCTURE OF HYPE
After the capital increase, Hype, previously 100% controlled by Fabrick, a company of the Sella Group, will be controlled by a 50% joint venture between Fabrick and Illimity.
FABRICK ENTERS ILLIMITY
Fabrick will also enter Illimity, through newly issued shares equal to 7.5% of the capital for a value of 45 million euros.
Not only. Fabrick, according to the note released by the banks, will have the right to receive other Illimity shares equal to 2.5% on condition of the profitability targets reached by Hype in 2023-24.
THE COMMITMENTS OF BANCA SELLA
Again according to the agreements, Banca Sella Holding will have to subscribe, in cash, upon completion of the transaction, a further increase in share capital in Illimity for 16.5 million euros, with the exclusion of the option right (equal to 2.5%), for an overall participation of the Sella group in the completion of the transaction of 10%.
THE NEW HEADS OF HYPE
The fintech Joint Venture between Illimity and Fabrick will be led by Antonio Valitutti, current CEO of Hype. Carlo Panella, head of Illimity's Direct Banking Division, will be the new President of the company.
THE OBJECTIVES OF THE JV
The joining of forces, reads the release , aims to “increase the ambitions of the project and the simultaneous acceleration of the growth of Hype, which already serves 1.3 million customers. At the same time, for the two partners, the operation aims to speed up the development plans of illimity in the specific segment, making the young fintech the Italian company with the highest development potential in "light" banking services and those of Fabrick as enabler of Open banking and new concept fintech projects ".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/fintech/passera-con-illimity-hype-di-fabrick-gruppo-sella/ on Tue, 22 Sep 2020 05:46:49 +0000.