Digital banking app provider Dave merged with the publicly traded special purpose acquisition company VPC Impact Acquisition Holdings III Inc. and is set to go public on Nasdaq on or close to Thursday, Dec. 6. At the time of its original SPAC announcement in June, Dave boasted an expected equity value of roughly $4 billion.
The four-year-old company, backed by the likes of Capital One and Dallas Mavericks owner Mark Cuban, operates a banking app that “levels the financial playing field” by omitting fees typical of legacy banks. The service, which works with over 10 million users, has no minimum balance fees, no overdraft fees and can help its users build credit and find side gigs.
The app also offers small advances on paychecks that consumers can then pay back once their check hits their accounts and offers automated budgeting tools.
According to a December prospectus, Dave’s banking users have saved an estimated $1.5 billion on overdraft fees, with the average member saving $160 in the first 12 months after opening an account.
“At Dave, we’re committed to improving the financial health of our members,” Jason Wilk, co-founder and CEO of Dave, said in a press release following its June news. “We believe the legacy financial system has failed to deliver, and today, more than 150 million people need our help to build financial stability.”
In preparation for its impending business combination with Dave, the publicly traded special purpose acquisition company VPC Impact Acquisition Holdings III Inc. announced Dec. 20 that it would withdraw the listing of its Class A common stocks and warrants.
Since its launch, the company has seen promising growth. The prospectus released to stockholders showed revenue in Dave’s third-quarter increased 30% in 2021 year over year, from $120 million to approximately $158 million. Transaction revenue grew 956% year over year, while service revenue increased 22%.
In a statement to the L.A. Business Journal, Jason Wilk, CEO of Dave, said the additional cash on the company’s balance sheet from the impending merger will allow for more strategic flexibility, and “an ability to compete in a way that we’ve not been able to previously.”
The merger is officially pending the result of a stockholder vote at a specially scheduled Jan. 4 meeting. Once approved, Dave will be displayed on Nasdaq under the tickers DAVE and DAVEW in early 2022.