Troubled mobile banking startup Monese is formulating plans to splinter the business into separate consumer-facing and corporate concerns amid mounting losses.
Sky News reports that the fintech has hired Interpath Advisory to work with Monese on the break-up.
Monese in January booked a £30.5 million loss in accounts filed for 2022 and warned of its ability to continue as a going concern unless it can raise additional funds.
The group last raised equity funding of £42.3m with the final round of its Series C funding in January 2022, bolstered by a $35 million strategic investment from HSBC in September 2022.
London and Tallinn-based Monese targets expats and immigrants who typically struggle to get a traditional bank account.
In accounts filed with Companies House, the finech posted losses of £30.5 million, 70% up on the previous year. Revenue stood at £27.7 million, up from £17.6 million in 2021, while costs increased significantly for the year to £26.8m (£2021: £17.2m).
Part of this is related to a strategic pivot to supply a core banking platform service to institutional customers. The business, dubbed XYB, is offered purely as a technology subscription, or with added operational support such as onboarding and customer support.
A Monese spokesman told Sky News: "The business has developed in two different directions: the original B2C business and now the new and fast-growing B2B PaaS (Platform as a Service) business.
"We are exploring the best organisational and capital structure for the company should be to maximise shareholder value."