Portuguese fintech super-app Rauva has announced its acquisition of digital bank Banco Empresas Montepio for approximately €30m. This strategic move is expected to allow Rauva to offer a wider range of financial products, specifically targeted at small-to-medium-sized businesses (SMEs), freelancers, and entrepreneurs.
Rauva’s existing app already provides a range of digital services, including digital accounts, payments, card issuance, business expense management, and accounting. With the acquisition of Banco Empresas Montepio, Rauva aims to further enhance its offerings by introducing new credit solutions and other products tailored to the needs of its target customers.
The founders of Rauva, Jon Fath and Sam Mizrahi, developed the fintech app in less than a year. Fath brings with him a wealth of experience in international M&A and technology entrepreneurship, while Mizrahi’s background lies in entrepreneurship and real estate development in Canada’s luxury residential and commercial market.
Despite being a relatively new player in the fintech sector, Rauva has quickly established itself, building a team of almost 30 employees. The company has been selected to participate in Portugal’s FinLab program by Banco de Portugal and has been recognized as a top emerging fintech.
Jon Fath, Co-founder and CEO of Rauva, expressed excitement about the acquisition, stating that it will not only save time but also increase efficiency and scalability. Fath also mentioned that the acquisition brings Rauva a step closer to becoming one of Portugal’s first unicorns.
The digital banking scene in Iberia is currently thriving, with Portugal standing out as Europe’s fourth largest market for neobanks. It is projected that nearly 1.5 million Portuguese citizens will have a neobank account by 2027. This trend is further exemplified by Turkish neobank Papara’s recent acquisition of Spain’s Rebellion, as it aims to expand its presence in Europe through strategic acquisitions.
Overall, Rauva’s acquisition of Banco Empresas Montepio strengthens its position in the Portuguese market and sets the stage for continued growth and innovation in the fintech space.
Sources:
– Portuguese fintech super-app Rauva acquires Banco Empresas Montepio for €30m (FinTech Magazine)
– Learn more about Rauva (Rauva website)
– Banco de Portugal’s FinLab program (Banco de Portugal website)
– SEON research on neobank adoption in Portugal (SEON website)