Shareholders dispute fund distribution ahead of Curve’s £120m deal with Lloyds
Investors in the digital wallet provider Curve are caught in an intense dispute over the proceeds from the company’s upcoming £120m sale to Lloyds Banking Group.
Sky News has learned that several shareholders in Curve have informed the company’s board that they oppose the proposed distribution of the funds resulting from a deal expected to be announced as soon as this week.
The £120m sale price represents only about half of the total funding raised by Curve since the company was founded a decade ago.
A fintech industry source said tensions between investors and the company have become so heated in recent weeks that at least one investor has sought the removal of Lord Fink, the City grandee, as Curve’s chairman.
Earlier this week, Sky News revealed that Lloyds was nearing a deal to buy Curve.
The bank hopes the acquisition will give it an advantage in the race to develop smarter online payment systems, amidst increasing regulatory pressure on Apple to open its payment services to competitors.
Curve was founded by Shachar Bialick, a former Israeli special forces soldier, in 2016, and was praised as one of Britain’s most promising fintech companies.
Three years later, Mr. Bialick told an interviewer: "In 10 years time we are going to be IPOed [listed on the public equity markets]... and hopefully worth around $50bn to $60bn."
Curve’s publicly disclosed shareholders include Britannia, IDC Ventures, Cercano Management - the venture arm of Microsoft co-founder Paul Allen’s estate - and Outward VC.
It was unclear on Wednesday which shareholders had voiced concerns over the planned distribution of the sale proceeds.
One source said that Mr. Bialick had recently written to shareholders acknowledging that the price was disappointing and warned that the company would likely run out of money this year unless a sale to Lloyds was agreed upon.
When he was appointed to the role in January, Lord Fink said: "Working alongside Curve as an investor, I have had a ringside seat to the company’s undeniable and well-earned rise.
"Starting as a card that combines all your cards into one, to the all-encompassing digital wallet it has evolved into, Curve offers a transformative financial management experience to its users.
"I am proud to have been part of the journey so far, and welcome the chance to support the company through its next, very significant period of growth."
IDC Ventures, one of the investors in Curve’s Series C funding round, said at the time of its last major fundraising: "Thanks to their unique technology...they have the capability to intercept the transaction and enhance the customer experience, with its Double Dip Rewards, [and] eliminating nasty hidden fees.
"And they do it seamlessly, without requiring the customer to change the cards they pay with."
Curve declined to respond to a series of requests seeking comment.
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