Hazel, the independent Fintech launched in partnership with Walmart (NYSE: WMT) and investment company Ribbit Capital, has announced that it has entered into definitive agreements to “acquire fintech platforms Even and ONE, marking the startup’s emergence from stealth mode.”
The transactions, which are set to close during H1 2022 pending approvals, “equip the combined business with immediate momentum in its strategy to deliver a single financial services app that empowers consumers to get paid, spend, save, borrow and grow their money.”
Millions of US consumers today are unable to access credit, build up their savings or wealth and are left to manage their financial lives via several different disconnected apps.
Nearly a quarter of American adults are unbanked or underbanked, and around 80% of Fintech users currently depend on several different accounts to manage their finances.
The combined business entity, which will operate under the brand name ONE, will offer users with an all-in-one or comprehensive financial services app to easily manage their finances in a single place.
The update also mentioned that the firm’s products and services will be made available “directly to consumers and through employers and merchants, including access to Walmart’s 1.6 million U.S. associates and 100 million-plus weekly shoppers.”
Omer Ismail will be responsible for leading the combined business entity as Chief Executive of ONE.
David Baga, CEO of Even, and Brian Hamilton, co-founder of ONE, will “remain in key leadership positions.”
Upon closing of the deals, the combined business will reportedly have over 200 workers and be capitalized with over $250 million “in cash on the balance sheet to fund future growth.”
Omer Ismail, incoming CEO of ONE, stated:
“Consumers everywhere are being left behind by the world of financial services. Our vision is clear: build on Even and ONE’s success to offer a product that offers consumers the best way to spend, the best way to access their wages and helps millions save and grow their money. I’m looking forward to partnering with two stellar leaders in Brian and David to improve the financial lives of tens of millions of consumers.”
The moves bring together two platforms in Even, a financial benefits platform that enables workers to access their earned wages on-demand, budget and save, and ONE, a direct-to-consumer fintech that works with Coastal Community Bank to combine saving, spending and borrowing into a single all-digital account.
John Furner, president and CEO, Walmart U.S. and board member of the combined business, added:
“Customers have made it clear that they want more from us in the financial services arena. Creating a simple, personalized app that allows users to manage their money in one place is the natural next step toward fulfilling that. We couldn’t be more excited about what this will mean for Walmart customers, associates and consumers everywhere as we try to help empower millions to improve their financial lives.”
For more details on this update, check here.