Mobile banking startup Monese has officially announced the division of its business into separate consumer-facing and corporate entities, alongside the infusion of new funding.
Under this restructuring, the Monese brand will persist as the consumer-facing business catering to immigrants and expats, while XYB, the B2B Platform as a Service (PaaS) technology arm derived from Monese, will emerge as an independent company.
Both entities have secured undisclosed financing to establish solid foundations, with a search initiated for a new CEO to lead XYB.
This move follows Monese’s previous equity funding round of £42.3 million in January 2022, which included a $35 million strategic investment from HSBC in September 2022.
The decision to bifurcate the company comes in the wake of Monese’s reported £30.5 million loss in 2022, prompting concerns about its ongoing viability unless additional funds were raised.
CEO Norris Koppel expressed optimism about the split, stating, “This separation will unlock the growth potential of both Monese and XYB, ensuring they are well-funded. I look forward to fostering continued collaboration between the two entities, while enabling each to focus independently on their respective growth trajectories.