Special meeting of VPC Impact Acquisition Holdings III, Inc.’s stockholders to approve the proposed business combination with Dave to be held on January 4, 2022
VPC Impact Acquisition Holdings III, Inc.,a publicly-traded special purpose acquisition company, and Dave Inc. (“Dave”), a banking app on a mission to create financial opportunity that advances America’s collective potential, announced that the U.S. Securities and Exchange Commission (“SEC”) has declared effective the Registration Statement on Form S-4, as amended (the “Registration Statement”), VPCC had filed in connection with the previously announced proposed business combination (the “Business Combination”) with Dave.
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations of Dave”
An extraordinary general meeting of VPCC stockholders (the “Special Meeting”) to approve, among other things, the proposed Business Combination, will be held at 11:00 a.m. Eastern Time on Tuesday, January 4, 2022. VPCC has filed with the SEC a definitive proxy statement/prospectus (the “Definitive Proxy Statement/Prospectus”) relating to the Special Meeting. On or about December 10, 2021, VPCC commenced mailing of the Definitive Proxy Statement/Prospectus to its stockholders of record as of the close of business on November 12, 2021.
If the proposals are approved at the Special Meeting, the Business Combination is expected to close on January 5, 2022, subject to the satisfaction or waiver of customary closing conditions. Dave’s common stock is expected to be listed on The Nasdaq Global Market under the ticker symbol “DAVE”, following the close of the Business Combination. Institutional investors committed $210 million in a PIPE led by Tiger Global Management, with participation from Wellington Management, Corbin Capital Partners and Alameda Research, which will be funded in connection with the closing of the Business Combination. The consummation of the Business Combination is conditioned upon, among other things, VPCC having a minimum of $210.0 million available to it at the closing of the Business Combination, which condition is expected to be satisfied by the PIPE investment.
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Business Update for Dave Inc.
- Dave achieved strong performance through the third quarter of 2021 with 30% year over year (“YoY”) revenue growth:
- Service revenue increased 22% YoY, despite continued headwinds, due to demand resulting from prolonged government stimulus
- Transaction revenue grew 956% YoY as Banking product started to scale
- Dave’s platform continues to grow with approximately 1.56 million new Members added through Dave’s efficient customer acquisition engine
- Dave has continued to make a significant impact on its customers and innovate on its product offerings demonstrated through:
- Members have saved an estimated of $1.5 billion on overdraft fees; the average Member saves $160 in overdraft fees in the first 12 months after opening a Dave Spending Account
- Approximately 4.5 million Side Hustle job leads have been facilitated by Dave and approximately $200 million of new income has been generated by Members
- Goals based savings launched; crowdfunding capability that allows Members to raise money from their friends, family and broader community in beta
- Nearing completion of full banking transition – all customers will be converted to Spending Account Members in early 2022
- Dave has achieved these results despite the delay in closing the Business Combination
- With the anticipated closing in early 2022, the infusion of new capital is expected to accelerate Member and revenue growth
“We are confident about Dave’s market opportunity and our ability to expand the positive impact that we’re making on our key customer segments. We have a compelling plan and roadmap for 2022 and beyond that we’re excited to execute on with the new capital from this business combination transaction. The additional cash to our balance sheet will give us strategic flexibility and an ability to compete in way that we’ve not been able to previously, given our limited fundraising with just $61 million of equity capital raised to date. We’re very much looking forward to starting our new chapter as a public company,” said CEO Jason Wilk.
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